Manufacturers price vs 3rd Party price

Sorry if this is posted in the wrong section, I couldn't find anything appropriate.
Can anyone explain why the cost of an item on a manufacturer's website is often more than buying the same item from a 3rd Party company?
You would think it couldn't be any cheaper than the manufacturer can make it.

Comments

  • dlusman
    dlusman Posts: 2,711 Forumite
    First Anniversary First Post I've been Money Tipped!
    Because the manufacture knows that a lot of people will think like you ( that they will be selling cheapest ) , and not bother to look elsewhere
  • Lisbon
    Lisbon Posts: 415 Forumite
    I've been Money Tipped!
    What you are seeing is a retail price on the manufacturer's website i.e. what an individual would have to pay to buy from the manufacturer. This may be the so-called Recommended Retail Price or a so-called 'special offer' from the manufacturer.

    Third party sellers will be buying at a discounted rate from the manufacturer - wholesale/trade prices are much lower. They will often resell at a lower price than the manufacturer because they are willing to accept a lower profit margin.
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