Costco Listing Prices Higher than The Manufacturer's RRP? Product Narwal Freo X Ultra

Em, Why is Costco now listing prices higher than the manufacturer's RRP (Recommended Retail Price)?

It seems like they were jacking up the RRP price only to advertise a huge discount.

For example, I purchased the Freo X Ultra from Costco for $999.

The website showed it as originally priced at $1,899, so it looked like I was getting a $900 discount. But the actual RRP is only $1,499 - so in reality, I saved $500, not $900.

For example:

Narwal Freo X Ultra

Costco Price $1899
https://www.costco.com.au/c/Narwal-Freo-X-Ultra-Robot-Vacuum…

Manufacturer's RRP $1499
https://narwal.net.au/collections/robot-vacuuma-and-mop/prod…

Another example:

Narwal Freo
Costco Price $1699 - $800 = $899
(saving of $800 based on Costco's advertising)
https://www.costco.com.au/Appliances/Vacuums-Floorcare/Robot…

Manufacturer's RRP $1399
(it turns out the savings were $500, not the $900 that was Coscto advertised)
https://narwal.net.au/collections/robot-vacuuma-and-mop/prod…

Related Stores

Costco Wholesale
Costco Wholesale

Comments

    • OK chatgpt

  • +2

    Why is Costco now listing prices higher than the manufacturer's RRP (Recommended Retail Price)?

    There's nothing wrong with that. Companies can sell items higher than RRP if they wish. Half of Amazon third-party sellers and all of eBay would go out of business if not.

    It seems like they were jacking up the RRP price only to advertise a huge discount.

    There could well be something wrong with that though, as it is quite misleading.

  • Recommended Retail Price.

  • Recommended Retail Price.

    Not This is the price you absolutely have to use

    • Have Costco ever actually sold it at their retail price? If not, then they just pulled it out of their ass. How can it be "was $1899" if it never was $1899?

    • Its a recommended retail price. Retailers etc can put ebay prove they want to on it.

      Supply and demand.

  • -1

    Bacon at Midnight

  • Em, Why is Costco now listing prices higher than the manufacturer's RRP (Recommended Retail Price)?

    Maybe Costco is using the RRP when released? RRP reduce all the time as the product ages.

  • They can sell the product for whatever price they want. However if they want to nominate a previous price when discounting they must’ve offered it at that price at some time. RRP on a product can drop as other products supersede it.

  • Rrp can be whatever the manufacture want it to be, it’s so arbitrary. I don’t even pay attention to it any more.

  • Some suppliers liase with retailers, and products are sold to a retailer at a higher price.

    Then a month or so later the retailer sold it at a cheaper price, and receives either price protection or rebates, to shift this stock.

    Then their competitors ask for the same deal.

    By doing this the Accc can do stuff all, as it's a 'genuine' price reduction.

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