Amazon's "List" prices...from where?

[Rob]

Anyone ever notice most of the products on Amazon have their price and also a regular "list" price. Then they tell you how much you are saving off of list. Where the heck do they get these prices? For example, the Delta 22-580 planer they have for $349. List price $788? Who has ever payed this? How about the DeWalt DW735 planer for $499. List price $860? I don't think so. My favorite, the Hitachi M12V router. Amazon has it for $159, which is waaaay below the list price of $541! Wow a 70% savings, they are practically giving it away! I know they just make this up, but what's the point of doing this in the internet age? Who's fooled by it? Maybe the same ones who are waiting for their lump sum from the Nigerian prince?

[George]

Manufacturer' Suggested Retail Price.

MSRP is a fiction designed to allow "discounts." It's the cousin of those prices your doctor charges for a treatment group on the "this is not a bill" statements sent you by your medical insurer. Since you went to a participating provider anyway, the only thing they're good for is the tax man. They're reported as "write-offs" anyway.

[GregP]

For a while I thought that these "list" prices did emanate from the manufacturers themselves and were intentionally exaggerated to let retailers claim large discounts. But there has to be more to it than that, since most retailers charge the identical price for these items.

[Leon]

List price is generally the highest. It is a price that the manufacturer will general throw out there as to what the product might be worth to the public.

We all buy Gasoline at List price. ;~)

Retail Price is the price that the manufacturer suggest the retailer sell the product at. If there is competition the retail price is generally a starting point to reduce the price from.

Wholesale price is a quantity discounted price to a reseller from a distributor.

[Rob]

You are right, the "list" should usually equate to the MSRP, but in Amazon's case, I think they are making up a price even higher than that. I don't think Delta would put out an MSRP of 800 bucks for a portable planer. I could be wrong though...

[Brett A. Thomas]

For what it's worth, Amazon says they don't just make it up:

"Except where noted otherwise, the List Price displayed for products on our website represents the full retail price listed on the product itself, suggested by the manufacturer or supplier, or estimated in accordance with standard industry practice. The List Price is a comparative price estimate and may or may not represent the prevailing price in every area on any particular day."

-BAT

[Leon]

No, List is higher than Retail. Having worked at a whole sale level for years and years, the price sheets from the manufacturers had price sheets that normally started at Cost and went through Wholesale, Trade, Retail and List. ,