Subscriber Discussion

Who Really Benefits From Hiding MSRP?

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Brian Karas
Nov 21, 2017
IPVM

In reference to manufacturers generally giving no price information on their websites, who is really benefitting from this practice? With users doing more research online before buying (which I think is a good thing/should be encouraged in general), is hiding MSRP information really benefitting manufacturers or integrators? It seems like it just adds additional friction to the overall sale.

 

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U
Undisclosed #1
Nov 21, 2017
IPVMU Certified

The less the customer knows about the pricing structure, the more tailored the “presentation” of the info can be, depending on the opportunity.

If a lack of MSRP leads to the prospect looking elsewhere then it obviously has backfired, in that case.

Thats why the brand/product has to be strong enough to create the desire in the prospective customer to overcome his agitation over the pricing uncertainty.

Once a qualified prospect has invested some time to investigate the product and made contact, the sale is greased.

Do all companies even have an MSRP?

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Brandon Knutson
Nov 21, 2017
IPVMU Certified

As an end user I use MSRP to help me determine the specific camera from my preferred camera line. For example, is a $400 premium worth it for vari-focal vs. a fixed lens, and so on.

Everyone has a budget and to hide MSRP is just plain frustrating to buyers.    

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UI
Undisclosed Integrator #2
Nov 21, 2017

I see your point and I agree that it would be difficult to gauge the overall cost of an item.  Some of the manufacturers which don't publicly advertise their MSRP will provide them when asked.

A possible counterpoint from an integrator is that when MSRP is advertised it makes pricing a project much more challenging.  For convenience not showing the MSRP for line item pricing allows an integrator to put a flat mark-up over the entire project.  Showing MSRP sets a bar we cannot pass on certain items.  As we're all either compensated or our performance gauged based on what our margin is on the overall project, the dollars are just shifted around.  Brands which allow for only thin margins under MSRP (e.g. Axis) make this more difficult.

To an integrator visible MSRP is adding more constraints. 

More constraints = more hassle = greater sell price (regardless of where it is buried)

 

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