do you own the right to re-sell your purchases?

[ggw]

Originally posted by Anton Newcombe:
  Where do you get the universal pricing policy from? And If that is the case why is tower $5 more expensive than nice record store?

Current:  Wholesale - $12.02; MSRP - $18.98
 Mark-up = 58%
 
 Proposed:  Wholesale - $9.09;  MSRP - $12.98
 Mark-up = 43%
 
 http://story.news.yahoo.com/news?tmpl=story&cid=495&ncid=689&e=1&u=/ap/20030904/ap_en_mu/universal_music_cds
 
 Retailers can charge whatever they want.  Tower thinks they can get a higher price because they're Tower.  Of course, they're closing stores left and right now.

[markie]

Originally posted by ggwâ?¢:
  Retailers can charge whatever they want.  Tower thinks they can get a higher price because they're Tower.  Of course, they're closing stores left and right now.

Oh, thanks GGW.
 
 So no wonder record shops have such a hard time with such a modest mark-up and the huge value of stock they have to keep on the floor.
 
 Most other retail establishments seem to run on trying to double or treble the wholesale price. I guess that is all tower is tring to do. I thought with their bulk purchasing they would access cheaper prices from the labels.........
 
 maybe tower isnt evil afterall.

[ggw]

Originally posted by Anton Newcombe:
  I thought with their bulk purchasing they would access cheaper prices from the labels.........
 
 maybe tower isnt evil afterall.

Big stores get rebates from the labels for advertising.  Labels also pay for spots on the listening stations. I would assume they also pay for placement in those racks at the end of the aisles.
 
 But Tower, unlike Best Buy and Circuit City, probably can't run a loss leader on CDs as a way of luring you into the store in the hopes that you buy a high-margin stereo and a mega-margin "extended service plan."