Re: Online seller on Sulit

Those are damn good prices. They arent earning much with those prices as well.

Re: Online seller on Sulit

that guy is Irwin Hardware in Edsa, Pasay...

Re: Online seller on Sulit

Can you comment Timber on these prices and the models he's selling? As you know I seldom buy tools of this level. Honestly though I'm very tempted to buy the grinder even though I just got a new one. The bench grinder is also very tempting.

Re: Online seller on Sulit

well, the owner is William, he use to play badminton in our facility. got my Makita LS1040 CMS from him, at that time it was the cheapest available, but since then, Mayon has put a lid on him since he sometimes sell lower than the srp which gets the competition upset. so if you are getting free delivery, that is what you can get free, price is competitive with binondo market...

Re: Online seller on Sulit

Hmmm sounds like a cartel. Isn't preventing free competition illegal or something? Only the distributor should not undercut his retailers but the other way around should be fine. The only thing I see in Mayon's action is that they don't want us consumers to get the best price we can. Kudos to William then. Just for the record I do not personally know William, heck I don't even know where his store is.

Thanks Timber it is good to know I don't need to go to Binondo.

Re: Online seller on Sulit

Oh by the way, in case the "competition" is reading this, I posted also on our boatbuilder's forum and found out a member of ours just bought a bunch of tools from him. If the prices were otherwise he probably would have bought surplus tools as I usually do. Lower prices mean bigger markets, higher total sales, higher total profits for you. For us, it means more people on PinoyHandyman.

Re: Online seller on Sulit

The distributor, in this case , Mayon, would prefer to have Nash's equilibrium instead (win , win on all)

price floor fixing is common in the industry. Bosch, Dewalt , Etc. will always set a price floor for which the end consumer buys their items. As Timber puts it, it keeps the suppliers from squabbling. This helps Makita distribute their item further than what a single distributor can.

In a perfect economic model the above situation is a total nonesense.

We sell crocodile meat. we HAVE to insist on floor pricing on our sellers so Regional distributors dont go price wars on each other. This discourages the dirstributors to promote their product. And hence everything dies down with a free for all since earnings are lesser and opportunity cost of selling our meat becomes too high then they concentrate on other things and eventually drops our meat.

In the end we get lesser volume going out. The meat becomes available at limited locations or even worse.

Also another situation is this. I am a little familiar on the hardware and tools industry to a small degree. Some shop/companies WILL DROP prices on their high value/high visible items to the point that their revenue for that item does not even cover overhead cost allocation for that item. This is to pull in customers and attract attention for their other products. This works because the consumers will think , since their gold are so cheap then maybe their silver are too! This situation undermines the honest shops that may have invested ALOT in marketing and advertising the same item just to be undermined by a distributor.

As usual.. Everything is almost always grayish when it comes to situations like this. The market in the Philippines is too small (borrowing from TImber) for companies to actually think of selling volume. Since demand is most likely inelastic. Hence pricing things lower will not get the total tools expenditure of philippines higher. since the same number of people will buy the same tools at different price ranges.

Advocates of a free market will go to a different course of action. I agree with free market , however the transition for a country's economy to adjust to a free economy will result in a loooooong birth pain before that economy finds out what it does best over the other countries and sells it.

just my two cents.

p.s. I am not against price wars since even i, as a customer, benefits from it. Its just that this is how things work for now for business to remain profitable and hence exist and create jobs.

Re: Online seller on Sulit

That's a fantastic post Bee. I really did learn something and I honestly do see the logic of what you, and Timber, are saying. I does make sense but to be completely honest it still leaves a foul aftertaste because this means I'm paying to keep others alive when I only really want the tool.

I guess this is why there are rules governing how stores hold Sales and Promos.

Re: Online seller on Sulit

By the way, is "Nash's equilibrium" the one by the Nash on which the movie "A Beautiful Mind" was based?

Re: Online seller on Sulit

yup yup thats the same as the movie 🙂

Re: Online seller on Sulit

In my experience buying tools it's still a bit cheaper in Binondo but not much.

Re: Online seller on Sulit

In my experience buying tools it's still a bit cheaper in Binondo but not much.

so while changing your vise, what else did you get? :p:p:p;)

Re: Online seller on Sulit

1. Makita 10" miter saw, P10,500
4. Makita angle grinder P2,800 !!! (I bought a B&D for the same amount a few months ago)
7. Makita 13mm drill, P3,600 !!! (I just bought this for P4,500)

The Makita LS1040 compound miter saw did not come with a blade. Irwin was selling Makita circular saw blades, but only for aluminum, 100T and 120T, P1,500 each. (They claimed that it could also be used for wood. :eek:) For wood, you had to get elsewhere.

The Makita 9553B angle grinder was previously being sold for P2,500 (limited time). I think it did not include a handle, which I think was available but at extra cost. I think there are comparable Bosch models at as low as P2,300 - P2,500.

The Makita HP1630 hammer drill, I saw tagged at P3,400 at Elektro Werk. The comparable Bosch GSB 16 RE was as low as P3,600 at two Bosch dealers (not Irwin).

The aftertaste of Mayon prior to this latest one has to do with their 'warranty' or lack thereof or inconsistent manifestations. Makita tools come with a warranty card that says 6 months against defects. However, I have been told that there while there is lifetime free service, there is zero warranty on parts. So which is it really, 6 months as the card says, or zero.

The warranty card also says that the warranty is valid only if the registration card is returned to Mayon within one week of purchase. In Philippines, is it allowed to make a warranty be conditional on such requirement?

Re: Online seller on Sulit

In reality Makita warranty sucks. Bosch is 6 months w/ parts. At least enough time to know if what you got was a lemon or not. 🙂