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Posted to uk.d-i-y
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Badged Power Tools
david lang wrote:
wrote: in a recent thread "I expect the pppro is likely
to be an aggressively cost cut version with plasticine gears and coin cells,
so I'm more tempted by the Ryobi".
We sell product in UK, but because we have to offer a 40% discount to
resellers and cover our costs, we also mark up by multiplying by 2.8.
We now have a product that is shipped from Italy, to Denmark, to UK.
Everybody wants a mark up, so a machine that leaves the Italian factory at a
price of £50 has a UK list price of around £390.
Enter stage left - B&Q and Machine Mart. They negotiate with FIAP, not for
container loads, but for huge volumes - really huge volumes, so they get a
better price. The shipping costs are less for larger volumes and they go
straight from Italy to UK. Fewer mark ups, less costs.
The upshot? Exactly the same kit (different colour, but identical) sold for
half the price. Exactly the same kit. Exactly.
Not a cheaper spec - changing that would actually cost FIAP money through
loss of volume. Simply bulk purchase, lower shipping costs, fewer mark ups,
lower margins.
"Ah, yes, but it doesn't work like that for Bosch, Makita, and all
these quality manufacturers, does it, because.... oh, arr, erm....
oh, *BECAUSE!*" 
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