This is just my opion, 100% my opinion, and my reasoning behind it.
I own a small motorcycle sales and service shop. Almost on a daily basis, we get customers who want us to match or beat internet prices. We do our best, and sometimes it's impossible. Here's an example, please read and think before you flame on.
A customer wants a set of new wheels, retail MSRP is around $700, dealer cost is around $470. They want us to match internet price of $510. Yes, our margins are really that tight on some items. Even if I say, OK, I will match it, I make a profit of $11.80 on that $510 ticket. Do the math, dealer cost plus 6% sales tax is $498.20, and then I have to tell them to pay cash, because if they want to pay with a credit card it takes another 2% to 3% our of profit. This is why it doesn't work for us. We lose more and more sales every year because of tax we have to pay and the online guys don't.
To a small business owner that employs 4 employees, this would make the playing field a little more even. I know, if I didn't own a shop I wouldn't think this way, mainly because I wouldn't know about it. In our industry there is a great deal of argument that if things don't change, 20 years from now there will be no small shops, just online big box stores. On a weekly basis we get people who want to return or warranty stuff they bought online becuase the online guys don't help, and customers don't understand why I won't return an item or warranty it when they don't buy from us. The online giants have a big advantage and the main street stores arent asking for an advantage, just an equal playing field. Flame on!!!!!!!!!!!!!!!!
I own a small motorcycle sales and service shop. Almost on a daily basis, we get customers who want us to match or beat internet prices. We do our best, and sometimes it's impossible. Here's an example, please read and think before you flame on.
A customer wants a set of new wheels, retail MSRP is around $700, dealer cost is around $470. They want us to match internet price of $510. Yes, our margins are really that tight on some items. Even if I say, OK, I will match it, I make a profit of $11.80 on that $510 ticket. Do the math, dealer cost plus 6% sales tax is $498.20, and then I have to tell them to pay cash, because if they want to pay with a credit card it takes another 2% to 3% our of profit. This is why it doesn't work for us. We lose more and more sales every year because of tax we have to pay and the online guys don't.
To a small business owner that employs 4 employees, this would make the playing field a little more even. I know, if I didn't own a shop I wouldn't think this way, mainly because I wouldn't know about it. In our industry there is a great deal of argument that if things don't change, 20 years from now there will be no small shops, just online big box stores. On a weekly basis we get people who want to return or warranty stuff they bought online becuase the online guys don't help, and customers don't understand why I won't return an item or warranty it when they don't buy from us. The online giants have a big advantage and the main street stores arent asking for an advantage, just an equal playing field. Flame on!!!!!!!!!!!!!!!!
