It never ceases to amaze us.

If I had a dollar for the amount of “is this legit?” queries, Dont Pay Retail would retire its staff to a private tropical island.
Allow us to explain.

We get so many enquiries about our low prices - and how we can do things lower than the retail “giants” its becomming tedious.

Lets analyse the industry.

A vendor brings a product, say a Printer, into the country for sale. The Vendor will offer it through various channels like the retail or reseller channel, or worse, a direct channel.
The Vendor gives the reseller or retailer a discount - a margin to make for selling the printer.
If the vendor is reputable, the margin for a reseller, and the margin for a retailer, are similar. Most Vendors are NOT reputable in this regard.

So, we both buy the printer for say $100 and Recommended Retail Price on the printer is $130.

We sell the printer for $104 - a Retailer sells if for $130 (sometimes even more).

How do we do it?

Well, for a start we dont have extravagent property to manage.
Have you any idea how much even the car parks cost to lease each year? We are talking many millions of dollars each year just for the premises they operate out off.

We dont have huge amounts of staff either.
Think about it, it costs at least $200 to the retailer, each DAY, to have the each and every floor staff member they have. An average retailer will place 20 - 30 “sales people” on the floor every day.
That works out to between $4000 and $6000 a day. Just for floor staff. What about management etc? We know what salaries they earn……(wish I was in management:))

Lets look at marketing.
Dont Pay Retail barely spends a dime on marketing - we dont need to (arrogant a little we know).
Your average Retailer operates dozens of Television ads each day, at an average of $2000 - $10000 for each 30 sec segment - its a lot…
Full page spreads in your national papers, hundreds of thousands of dollars for each edition. Lets stop before it gets out of hand.

You might be thinking how come retailers are still in business? Well they are and they are not.

A big national chain went under in Australia recently, was bought out buy another retail chain, and closed down.
This company had big dollars behind it, and still could not make it work.

How do the ones that are around sill remain.

Margins. They are able to retain margins.
Retailers get better pricing from the vendors than resellers. Simple.
They are subsidised with rebates and other kickbacks. Vendors “pay” them to sell their products.
They pay to be put in their catalogues, to be put on the showroom floor as well.
They have their advertising paid for, or most of it by Vendors as well.

Why, they do large numbers (turnover - sales). They sell lots, simple.

They do not do large numbers because they are priced better than Dont Pay Retail, or any other reseller, they do large numbers because customers walk in the door.
Why do customers do this? They are not educated enough. They dont know. (not saying they are unintelligent - just not product knowledgeable and buying savvy)
They think they are getting a good deal because something is 20% off.
So the $130 printer that is now on special for $110 at a retail store, because its 20% off, is all of a sudden a better deal than our $104 price that we offer 24/7?

You would be surprised. Dont laugh, it happens all the time.

Retailers refuse to compete with us. Go into a Retail store like Narvey Hormal (name altered to protect identity…:)) with a print out of a product on Dont Pay Retail and ask them to beat us.
They wont.

They have a price guarentee, but it only applies to other retailers…..They cant compete with us, and they dont.

You decide where your money is going.

Do you like the flash associated with a retail store?

The friendly floorstaff, the neatly presented product displays?

Is the warm cushy feeling worth the extra money?

We didnt think so.

www.dontpayretail.com.au