Why do all new supplier start prices so high?

[robw]

I mean really, the china supplier prices are $20, so why charge $149 for a dse901?

I keep seeing new suppliers posting cheezy commercials on youtube, and they all start at really high prices. Are the china suppliers telling them to do that or are they just greedy?

 

[CaSHMeRe]

Simple ...

A majority of ecig users know of ecigs in just one of a few ways.
1. Saw them at a mall kiosk (or retail location)
2. Randomly stumbled upon an advertisement on the internet
3. Heard about them through another user ...

Now, 1 and 2 don't know of *others* like them, therefore, they base their pricing off what they saw. They have zero business sense, and are looking to make as much money as quickly as possible, with no long term goal/longevity in mind.

Granted, retail pricing normally is probably should be more expensive than internet sales, but $150 is pushing it .... something priced at $40-$50 online, you can expect to see atleast a 30-40% markup if then resold at retail. Its just the nature of the beast, plus retail locations have higher operating costs ...

 

[dc2k08]

one law of spam: it's easier to sell a few items at a high price than a lot of items at a low price.

 

[trog100]

I mean really, the china supplier prices are $20, so why charge $149 for a dse901?

I keep seeing new suppliers posting cheezy commercials on youtube, and they all start at really high prices. Are the china suppliers telling them to do that or are they just greedy?

the answer rob is cos they can.. they rely on consumer ignorance of the chinese start prices and the good old adage that one gets what ones pays for..

i think the term for it is capitalism..

plus the chinese are slaving away for bugger all so that we can get fat.. lots of western people make their living from the original two dollar chinese factory price.. your chinese 20 dollar e cig has already been marked up massively from what the stuff leaves the chinese factory at..

whilst working away for nothing the chinese still have managed to save tons of money.. they lend us this money by buying bonds and junk from us just so as we can keep their factories running and keep buying the stuff they produce for bugger all..

lots of people earn their living from the two dollar chinese factory item.. each mark up is someones living..

all very unbelievable and all very true.. in fact its such a wonderfull system its all about to go ka.boom..

u did ask now u know..


trog

ps.. u shouldnt ask questions u dont really want to know the answer to...he he he

 

[jarvis]

Thankfully the get rich quick aspect is starting to die down as more people learn about the devices. Thank god for this forum, I was actually considering buying a ruyan before I came here and found out that magic didn't exist. It still gets me a bit peeved to see sites that are selling penstyles, 901s and the first generation mini for 100 dollars!

 

[trog100]

some were 199 dollars jarvis.. with carts at five dollars each which works out at over 22.000 dollars per imperial gallon for e liquid in little plastic tubs..

trog

 

[dc2k08]

the people who mark there prices high are the people who understand how to market goods online successfully and game search engine results. their market is the casual internet user. they are not interested in providing a good quality repeat service, just in taking people's money and running. they use youtube videos as one tool to promote their product as youtube videos rank very high in SERP's and a lot of users like to watch a video about a product rather than read an article.

There are 3 types of marketing - blackhat, greyhat and whitehat. Some use all three, some use a combination. There are new techniques invented weekly and are often shared to people in the know. It's a good practice to watch what techniques they employ as a lot of the time the best of these will filter down and be used by mainstream businesses in some sense. It's like the porn industry, advances in internet technology often happen on porn sites first and then this technology will filter down and be picked by the mainstream.

You will see a lot of the businesses who mark their prices high fronted by women although the majority of them are men. I would guess that around 75% of online venders who claim they are women are in fact men. the reason being that generally women are perceived to be the more trustworthy of the sexes.

An old web tutor I had was a fat middle aged family man though he ran a diet oriented web site under the darling name of rachel steele or something which was just a bait page to have people click on his diet related ads. He of course also gamed the SERP's in his spare time so that his site would rank no1 for any diet related searches in the area. users would search for "diet" click on his site or and would hopefully end up clicking on his ads and line his pockets for little effort. ranking in the first page for a diet related search is difficult as the spots are fought over so often as "diet" is one of the world's most searched for terms.

generally these people like to only sell digital products like e-books and software as shipping can be a hassle and slow down their money reaping but with a product like an electronic cigarette, it really is not surprising that they have taken it up. I am only surprised it has taken them this long to catch on. Some of them stick to affiliate marketing but the only electronic cigarette company I have seen that offers an affiliate program is Njoy, hence some of these marketers have recently created an e-cig forum that you will notice ranks high in the SERP's even though it has little or no content.

You will see a lot of blogs online that will carry a link back to the Njoy site and if you go to ask yahoo, you will probably soon start to see answers to questions about e-cigs that dribble on and then reccomend Njoy with the link that gives them their cut. It essence Njoy has outsourced their marketing which is not a bad idea for a company that wants to make money (who doesn't) but it does fill the web up with lots of spam. It's not difficult to rank high for a search term if you know what your doing and these people know. they're hoping to catch the consumer at their sites before they explore any further. They mark their prices high as the theory is that it is easier to sell a few items with a high markup to a couple of flies than it is to to sell a lot at a low markup and have to deal with things like customer service.