The price maintenance approach cuts both ways: Retailers have relatively little incentive to carry Apple products, or to dedicate precious retail and advertising space to them, if the potential profit from sales is so low. With such a narrow gap to tinker with, most retailers can’t offer big discounts and still hope to turn a profit. The actual numbers are a closely guarded secret, protected by confidentiality agreements between Cupertino and its resellers, but the difference probably amounts to only a few percentage points off the official price that you find at Apple’s own stores. That gap leaves enough room for each retailer to set its own policies and generate a sometimes significant range of market prices for a product.Īpple, however, extends only a tiny wholesale discount on its Macs and iPads to your retailer of choice. A different retailer might offer an even lower price to attract more store traffic, or conversely it finds itself in a weaker position due to lower sales volume and have to charge its customers more for the product.Īll of this price variability is possible because of the large difference (commonly from 30 to 55 percent) between the wholesale price-what the retailer pays the distributor for each unit of the product-and the MSRP for each unit. Thus, a laptop with an MSRP of $500 might cost the retailer $250 to buy, and might carry a sticker price of $350, accompanied by a bold “30% Off!” announcement in the store’s weekly flyer.
#APPLE AIRBOOK PRICE FREE#
Even though each product has a “manufacturer suggested retail price” (MSRP), each retailer is free to set its own sale price.
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Most products move from manufacturers to retailers through a network of distributors.