Do Dealers think it is sinful..........


..... to give a customer a break on the price of high end audio equipment? is there something ethically wrong with this? why is it that i can negotiate down the price of a car or real estate many thousands of dollars, but i cant even get a discount on something the dealer (1) doesnt stock, (2) will not let you bring home for a day. i feel that when you are spending big $, like 8k + on a sale there should be some give and take. what do you think?
avnut

Showing 6 responses by gmkowal5c1a

I thought that was what I posted? Anyway, IMHO, I think it is unreasonable to expect a High End dealer to discount 15% or 20%. After all, they need to make enough money to stay in business. For those who have owned a business, all of the expenses incurred in the running of the business are all too familiar. The dealers who maintain a decent inventory especially get hosed because they pay tax on it the same as if it was profit resulting from sales.
I don't know what dealer you worked for but I highly doubt that high end speakers have 100% markups.
Gentlemen, with all due respect, I used to sell high end audio equipment part time during college. While there is truth in what you are saying, sometimes is beyond the control of the dealer. Some of the manufacturers, and there are quite a few, threaten the dealer with pulling the line, if they discount. While this is highly illegal, it is a common practice in high end audio, and the dealers are pressured to go along with it, for fear of losing their product lines. Some manufacturers that we all hold near and dear, participate in these practices. The dealer I used to work for used to make up for the non discounts by giving the customers accessory credits, based on the ammount spent, that could be used for cables or accessories. The credits usually were about 10% to 15% of the purchase price. Gents, I can tell you with complete confidence that it is not always the dealers fault that a discount is not offered.
Sorry Cornfedboy, I respectfully disagree with you. If you read my prior thread in this post, I used to work for a dealer during college. Granted, it may have been a while ago but I don't think things have changed too much. When I worked in the HiFi shop, most margins were 20% maximum. You are absolutely right about the accessories though, 60% or so margin on those. Think of it, a dealer makes $7000 on a $10,000 amp? If that were true, we are both in the wrong business. The dealer I used to work for, gave accessory credits for cables etc. usually about 10% of the purchase price to make up for not getting a discount. The customers seemed to like it because they would not have to shell out another $1000 for those high end speaker cables after purchasing that $10,000 amp.
Gents, there are very good dealers and very bad dealers. Some treat their customers like gold and some treat their customers like dirt. It is a shame when a few bad dealers tarnish the public's view of all dealers. I still think that if a dealer services you properly and takes a consultitive role in your purchase it is not ethical to threaten him with taking your business elsewhere if a sizeable discount is not offered.
Kendall43, sorry to shake your tree but I don't believe you either. I live in NYC where there are many, many Hi-end dealers and have yet to find one that discounts 25% across the board. Oh, and lose the attitude, we are all adults here and there is no need to call each other names. We can disagree more maturely than that.