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April 26, 2009 - 2:51pm
#1
High end audio dealing
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Jeff
Ignore Jan, in the real world there is approx 50% mark up on most hifi. Jan believes that the a $5 peice of wire really is worth $20,000 becuae someone wrapped a block of Swedish Pine around it.
I believe it is reasonable to expect 10-20% depending upon the item, if your looking at a high volume line that needs little demo time then 15-20 seems OK but if its highly specialised then 10% is more normal. Also dont be intimidated by the dealers complaining about margin, even at 20% discount they are doing fine on any item you buy. Just dont do the asshole trick of going into dealers listening for hours then buying online, that really is a bad thing to do and your armpits will be infested with the fleas of a thousand camels if you do it !!
Alan
This subject has been beaten to death on this forum. Why don't you just look through the archives for the last half dozen fights we've had over this subject.
I did look through the archives and didn't find anything addressing the subjest ... hence, I asked the question.
Jan makes it fairly easy to do.
Thank you Alan for the info! I would never take a dealers time and then buy online ... For that matter, I don't buy anything online ... don't trust it.
Jeff
Just so your aware, jan and I had a big fight about this. I believe that you should not audition in a hifi store then buy the exact product online. I also believe however that this does not give the hifi store the right to charge full sticker and in my case offer trade in values 30% of the blue book ( actually 10% of new value ) the hifi store has to work on the economics as well as the service to keep you happy.
Jan cannot comprehend that I can have both opinions.
Alan
What you were reading probably referred to the price difference between raw manufacturing cost and full retail price. If you add up the cost of parts, the retail price is about five times that number. There's a lot that goes on between raw parts and retail price that makes a lot of difference when you're discussing high end audio. This allows everyone a comfortable margin of profit. Don't confuse this with the idea the dealer is charging five times what he paid.
It really makes me no difference if you ignore me or not. But since you asked the question it would be rude to ignore someone just because you want to hear a different answer.
If you were ready to pay a higher price until you came across that article, what changed and now you think you should be asking for a "30% etc." discount? Did you think the price was fair before you came across this article?
A comfortable profit margin for everyone
50 % margin for the manufacturer
20% margin for manufacturers rep
30 % margin for the distributor
50 % margin for the dealer
Everyone's comfortable, customer gets screwed.
Dont start on the hifi is good value crap again Jan, Mark Levinson is made side by side with Crown, one goes in a painted steel box and costs $600, one goes in a pretty aluminum box and costs $10,000 its the same electronics made in the same plant by the same people !!! dont even try and agrue that there is less than 400 % mark up on hifi.
Alan
I have not been shopping at all so I had no item or price in mind when I asked my question.
I would have ask that question at some point prior to shopping, along with many other questions, in order to be as prepared as possible before spending the $$. The article just brought that paticular question to the forefront so I thought I would go ahead and post it hoping for some valuable insight from the more experienced members of this forum. You responded as if I had just committed some perfidious deed. You should have a glass of wine and relax.
It really makes me no difference if you ignore me or not. But since you asked the question it would be rude to ignore someone just because you want to hear a different answer.
What is rude is that you respond to a simple question with "hold out for 110% off" and then some drivel about making the dealer pay me to listen to his high end gear and ending with the inane comment of asking for a raise.
I have no idea why SM deleted this but let's try the question again since I see no problem with asking this.
You get to ask for anything you want from a dealer. If you ask for a 30% discount and the dealer says. "No", what are you going to do? What's your alternate plan?
This one too, SM. I don't understand what's wrong with this question.
Your numbers are so out of bounds as to not even be worth discussing.
Tell me whether you found anyone to take you up on that deal you tried to make that made you start a thread about dealer mark up.
If you are giving advice on how to get a deal and you can't manage one yourself, what good is your advice?
Find another dealer.
Welsh:
Very good post. I can't tell you how many times I have gone to my audio dealer only to see people walk out because they are stunned at the prices. Last week I talked to a couple in the parking lot and told them to come to this forum to get some great ideas on high-end audio without going broke. Now they have a list of products that they want to audition from B&W, Ayre, Marantz and Vincent but wanted to know where they could hear everything at on dealer. My reply "good luck" but keep an open mind and spend some time listening and learning.
Jan
Thread over, its not the right place.
Alan