Oakley Retailers On EBay - Question

[Frogskins]

As you all know, Oakley sets prices on their glasses (retail) and sells them for this amount on their site as well as through all their official retailers and O stores.

So for instance, if a pair of Frogskins go for $120.00 and you see them at an official Oakley retailer, that's how much that retailer will charge for them.

I always assumed they "have a contract" with Oakley and if Oakley is selling that particular model for $120.00, they have to have it for sale for that same price (not less) at their store.

However, I see there are many people (some are "real" store owners as well) that sell BNIB official Oakley products for much less then retail on eBay.

Is this because they have less overhead costs (no real store to maintain, no employees to pay, etc) so they are able to sell them for less?

Is this "o.k. with Oakley?"

 

[Rustpot]

Oakley sets MAP - Minimum Advertised Price. Advertised being the key word. You cannot put a price tag on them, or put out print ads, or any advertised sales, for less than MAP. Retailers don't have high profit margins on Oakley stuff anyway, Oakley keeps the bulk of the sale price.

If you're not an authorized dealer you're not under contract to sell at MAP. Oakley help protect pricing by setting MAP close to cost so you'll never see someone blowing out Oakleys for a huge discount, and you've only got warranty protection for those that follow the rules to help justify to the customer to buy at MAP.

I have no clue where 6pm and some of the other eBay sellers get stock to sell at Vault prices, or somewhere in between retail and Vault.

 

[jk-27]

Authorised Oakley dealers can sell at a discount but I do know Oakley has a set maximum discount that a dealer can offer. If the dealer breaks that they lose their dealership with Oakley.

 

[doowutchyalike]

Yeah, discounts used to be frowned upon, my employer actually lost our account because we were giving employees our normal discount. I think they have eased up on that pretty much, or else our rep doesn't want to know what discounts we offer. Mark up is about 55% for us, so not sure where rust gets the non high profit margins, take half of what see on the website and that's most dealers' cost.

 

[Frogskins]

Thanks for the info - much appreciated ...

 

[Rustpot]

Yeah, discounts used to be frowned upon, my employer actually lost our account because we were giving employees our normal discount. I think they have eased up on that pretty much, or else our rep doesn't want to know what discounts we offer. Mark up is about 55% for us, so not sure where rust gets the non high profit margins, take half of what see on the website and that's most dealers' cost.

I was told brands like Native, Bolle, Smith are much higher margins for retailers.

 

[jbrew]

My brother in law manages a shop, mark up is usually around 50 percent. Metals at cost is about 40.

 

[the_owl]

no. markup is exactly 50% on Sunglasses. I have an ovault login

 

[doowutchyalike]

no. markup is exactly 50% on Sunglasses. I have an ovault login

Some accounts get a volume discount.

 

[the_owl]

that would have to be a lot of volume.
Ive seen an order for over 100 pairs and the price didnt budge.
But im sure theres more than one tier for pricing