Let’s take Samsung for example. Buying the S23 ultra from samsung’s website (Kuwaiti region) costs around 417 Kuwaiti Dinar (≈350 after discount). However, buying the same exact phone from a vendor in Kuwait costs only 220KD. Almost half the price.
I understand that large vendors benefit from economies of scale but the difference is huge! Why is that?
In: Technology
There are a couple possibilities.
1. The Vendor is offering a promotional price, possibly in conjunction with requiring the purchase of a secondary, more expensive product or recurring subscription for a certain period (like a phone plan). Essentially they’re offering to sell the phone at a steep discount and make it up on the backend of the deal with a higher priced ongoing service.
2. The Vendor is purchasing a significant quantity of the product and receiving a steep discount, which they are then passing on to you as the customer as a way to increase business.
3. The vendor has excess inventory and is anticipating the release of a newer phone that will significantly reduce sales of the current product, so they have slashed the price to clear inventory.
4. Some retailers will disguise “Open Box” returned items and sell them at steep discounts to get them out of inventory. They may have defects ranging from minor cosmetic to major functional.
5. Regional/Non-Regional Pricing – some producers might sell to certain regions at a reduced price to try and secure more sales even though incomes in the area might be lower. So the vendor might be getting a much better (Regional) price, but the manufacturer might be offering a higher (Global) price.
6. The Vendor is doing something illegal or scammy.
I’m going to stop there because the longer I think on this the more possibilities I think of.
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