Setting Prices on DJI Drones ?

[Scampcamp]

I am wondering how DJI drone prices are set... are the distributors able to set there own prices or is DJI telling them what it should be priced at?

Also... if a distributor is selling a DJI Macic Air combo kit at $999.00... How much does the distributor profit?

 

[tcope]

DJI dictate to their authorized dealers what the prices need to be. Authorized dealers are not allowed to decrease that price. They can include additional items at no charge (for example, an additional SD card).

Only the autho dealer knows what the profit is.

 

[Kilrah]

It is illegal in many places for manufacturers to dictate prices, seems it's not the case in the USA.

Here you can easily get (equivalent) $200 or so difference for a Mavic between authorised stores.

 

[tcope]

It is illegal in many places for manufacturers to dictate prices, seems it's not the case in the USA.

Here you can easily get (equivalent) $200 or so difference for a Mavic between authorised stores.

I can' speak for "most countries" but not in the ones I know of. It's a contract that the dealer enters into with DJI. If the dealer does not want to agree, DJI does not have to supply them products. This is a very common practice.

 

[swooshdave]

It is illegal in many places for manufacturers to dictate prices, seems it's not the case in the USA.

Here you can easily get (equivalent) $200 or so difference for a Mavic between authorised stores.

The manufacturers cannot set the price in the US... that being said they can determine who can sell their product... so put those two together and...

Profit margins on most electronics are pretty low, except when you control a majority of the market. The margins on the DJI drone products are probably pretty good for DJI, they probably don't give the retailers a ton of room to work with. Dealers are happy to sell as many of those drones as they can.

 

[Kilrah]

In the EU it's very different and illegal to refuse to supply a distributor becasue he didn't follow your MSRP.

 

[swooshdave]

In the EU it's very different and illegal to refuse to supply a distributor becasue he didn't follow your MSRP.

Are the DJI prices are pretty close to MSRP there because demand is high enough?

 

[Kilrah]

As I mentioned there can be quite a bit of difference between dealers. No idea what DJI's MSRPs would be for my country since I'm not one of their distributor, so...
But if the DJI online store is to be taken as a reference (not really given they don't even charge in the right currency) real prices here in online stores are about 20% lower.

 

[tcope]

The manufacturers cannot set the price in the US... that being said they can determine who can sell their product... so put those two together and...

In the US the manufacture can obtain a contract with the seller to sell at a set price. This is what DJI does and it's very common. It's simply a sellers contract.

 

[Just_nick]

In the EU it's very different and illegal to refuse to supply a distributor becasue he didn't follow your MSRP.

No, but they can very easily find another reason to stop supplying them.

 

[WarpedTrekker]

All electronics are highly marked up in USA. Especially high end audio equipment, speakers and electronics like these drones. DJI has to get their cut to pay their employees and assembly line and pay for shipping to the dealers. Then the dealers have a cut as well. It's how it works with everything. I wouldn't be surprised to see a 100% markup or more.

 

[swooshdave]

All electronics are highly marked up in USA. Especially high end audio equipment, speakers and electronics like these drones. DJI has to get their cut to pay their employees and assembly line and pay for shipping to the dealers. Then the dealers have a cut as well. It's how it works with everything. I wouldn't be surprised to see a 100% markup or more.

Nope, not that high for electronics. It's more like 20% or less for retail. Other common products can be more. High end products do tend to have higher margins but keep in mind they sell less of them.

 

[ddesens]

There is probably a volume discount also for dealers. The more units they purchase the less the per unit cost.

 

[swooshdave]

There is probably a volume discount also for dealers. The more units they purchase the less the per unit cost.

Yes, that is usually the case.

 

[RayOZ]

The dealers buys the drones from DJI for a discounted price. Dealers can markup to the retail price as DJI's website, which would be normal. They can also reduce the price to the point of breakeven, unless they want to lose money or get rid of stock. If DJI is offering a 20% discount from their own website, dealer can match, and I am sure the dealers is not at a loss. I guess, a rough estimate would be dealers are buying at 25%-30% discount to retail price. So if you find a seller trying to sell for a larger discount that 30%, be wary cos it could be a scam.

 

[mmoguls]

There are dealers and then there are distributors. Distributors have a much greater margin has their initial investment was very high. Regular dealers are forced to buy from distributors and agree to sell at minimums. This leaves very little profit and no room to discount has you have signed an agreement that you will not do that.

 

[swooshdave]

There are dealers and then there are distributors. Distributors have a much greater margin has their initial investment was very high. Regular dealers are forced to buy from distributors and agree to sell at minimums. This leaves very little profit and no room to discount has you have signed an agreement that you will not do that.

I don't think that DJI has distributors, do they?

Note that your generalizations don't apply to all businesses. TVs will be different from shoes which will be different from food which will be different from drones.

 

[AnzacJack]

All electronics are highly marked up in USA. Especially high end audio equipment, speakers and electronics like these drones. DJI has to get their cut to pay their employees and assembly line and pay for shipping to the dealers. Then the dealers have a cut as well. It's how it works with everything. I wouldn't be surprised to see a 100% markup or more.

You should check our prices here in Australia. We always pay top dollar for everything from phones, drones and even software (games etc).