Re: How Does This Work?

DJs mom · ‎06-06-2012

@Mz iMac wrote:
Sometimes I see vendors all over the place.

One day the HP guy will be selling its comp, then the next thing you know, he is selling large smart tvs. The next day he's selling Bose or some other next best tecky thing.

@Mz iMac a vendor and OAP are different to me. When I think of vendor I think of the owner, when I think of OAP I think of someone contracted to represent the product. This why you see OAP representing different items (Craig Smith, the Halo lady, Oscar), they are contracted to do just that. They have no stake in the company.

Mz iMac · ‎07-26-2014

@DJs mom Thanks for explaning. For years I thought that guy worked for HP as he knew their computers inside & out.

"Never argue with a fool. Onlookers may not be able to tell the difference."

NYCLatinaMe · ‎01-14-2017

I know with other retailers it varies.

Some vendors demand a certain price, like beauty products that are typically identical across stores. But since they go on sale, I am guessing they need to deal with the company to offer a lower price. Maybe a certain volume of inventory is offered to go on sale.

I represented as a lawyer an electonics retailer that was in bankruptcy. That is another industry where prices tend to be standard. With regards to the distressed retailer, when a product wasn't selling well, they would claw money back. They could offer a sale, run commercials, or sometimes give the inventory back to the vendor.

I am guessing that, for each batch of inventory acquired, the terms are negotiated, including the right to return inventory if target sales are not achieved.

When I was a regular department store shopper of business attire in the 1990s, shopping DKNY, Anne Klein by LDO, etc., I remember when fresh inventory would drop across stores, prices were set by the manufacturer [they made the price labels], but each store (Saks, Bloomingdale's, Macy's, Lord & Taylor were my regulars) would have slightly different inventory of the same collection, and the unsold inventory would be discounted after a certain number of weeks of the inventory being on the floor had lapsed. First 20%, after a time 40%, then clearance at the end of the season. I used to know the number of weeks!

So I think pricing schemes are agreed to.

shoekitty · ‎03-10-2010

as far as I know from experience, QVC and vendor come to terms. This was a long time ago, but I was chosen to bring my product to QVC 50/50 show submission review. We set up table, QVC agents came to tables did interview , and gave a basic amount of product they wanted. no way could I ever produce the amount of product they needed !! But I do know they had several ways of doing it. But basically, they do request a certain amount of product . Shipping arrangements are negotiated,as is price. q will tell you what they need. I didn't choose to participate, and I was out in first round, due to amount. but learned a lot!! however the lady with this baking pan was chosen,and some garlic sellers, and food items. Great experience, wonderful people, and they were so kind.

i am surmising now the price is negotiated. I do know QVC does buy some things outright, and takes care of the shipping etc. they also have vendors send product,already boxed ready to go, and q takes care of shipping from own warehouse. Some vendors ship product directly. I imagine all prices are negotiated fairly. I sincerely do not believe QVC over charges on anything. They know the cost of vendors product, they know profit margin.

this is just what I gather from experience, and paperwork I received. I know it was years ago. But same principles still exist I am sure

“sometimes you have to bite your upper lip and put sunglasses on”….Bob Dylan

CalminHeart · ‎03-09-2010

@Bonkers1 wrote:
When a vendor brings an item to QVC do they both agree on the price? Then can QVC drop the price as they wish?

I'm sure there is some kind of contract with vendors. They both want to make money and sell their inventory.

lynnie61 · ‎04-28-2010

Sometimes Kim and Susan, say, wow, they didn't know xx item was priced so low. But they seem pleased for the customer. So they may not know when they offer a clearance, OTO, or today only price. The both sell, gazillion of pieces, so they probably don't care, they move it out! But Q clearance prices aren't always what B&M stores are. Lots and lots of tops at Macys and Kohls under $25. Then plus a coupon.