why is buying from a vendor so much cheaper than from a company’s website?

Question

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

Answer 1

When you say a vendor, do you mean a cell carrier? Or an electronics retailer? Cell carriers often discount phones to lure in customers and make back the money through the service over time. Retailers can sometimes offer discounts/sales that the manufacturer won’t themselves offer because they don’t want to compete with their channel vendors they depend on.