Does anyone or does everyone pay retail price?


I've never bought "new" higher end audio (4k-up) , does everyone pay the MRSP or is there a little or alot of $$ to neg. when buying from a local store? Amp.,speakers,etc.

Gary
garypic

Showing 2 responses by ellery911

I'm sure it depends on many factors. Especially in a normal economy.

Times are a little different now.

Most businesses operate on credit. When the sales are slow, the HELOC is closed, the credit card limits reduced and the savings are being depleted....a store might have to discount certain items as if they were a Compton foreclosure just to keep things rolling through tough times.

If the store (and owner) are debt free and flush with cash, they can scoff at your requests for a discount. Of course, this has more to do with the hubris of the owner/salesmen, rather than their lack of economic comprehension. I have a feeling that these stores are more the exception than the rule.

That's just the way it works when you unwind a hyper-leveraged economic system...and that's what's going on now just in case you hadn't noticed.

I expect to see many audio dealers/manufacturers chase the market down (with their discounts/pricing) just like the homeowners...sometimes to the point of bankruptcy.

Should the dealer have to eat it all?

No...absolutely not. The manufacturer might want to wake up to what's going on also and cut the dealer a retroactive discount.

If you really want to see how cheap things *really* are currently. Just ask any dealer that is a buyer of used equipment what they'll pay YOU for a piece of your equipment if you're not intending to trade up and just want to sell.

They don't *want* anymore inventory.

They *need* cash.

Dominoes anyone?
That 40% mark-up that some talk about here forget just a few small expenses a B&M store has to contend with to keep his doors open.

* Rent on the building (can be a big cost.. Location, Location!)
* Utility bills
* Phone bill
* Yellow page ad in the phone book
* Fire content insurance premiums
* Liability insurance premiums
* Advertising expenses
* Fees paid to the accountant
* Possible interest $$ for Bank line of credit to buy inventory?
Many manufactures require payment up front before they will ship their merchandise. And of course that is plus shipping costs as well. So if the B&M store is of any real size he has to have a banker.
* Business permits, Fees, required by the city, and or state.

* Employee/s base wages
* Employee/s commissions (percentage $$ for selling an item)
* Employee State unemployment insurance
* Employee workman compensation insurance
* Matching FICA taxes on wages
* Any health benefits?
* Any paid holidays?
* something I probably left out....
* Owners wages?
* Owners health insurance premium?
_____________________________________
....... profit .........
=======

How could a dealer possibly give a 20% to 25% discount to every customer coming through his door?

There is a larger force at work...haven't you noticed anything a little...say...different lately?

Let's call him "Mr. Market".

Mr. Market doesn't care what your overhead is. Mr. Market doesn't care about your rent, your insurance, your utility bills, your employees salaries or their healthplans.

None of it.

In fact, Mr. Market is a pretty insensitive person. He doesn't care about anything. Mr. Market doesn't care if you can keep your house or even feed your family.

Mr. Market is going to give audio manufacturers, audio dealers and even private sellers of used gear on Agon a very uncomfortable lesson in Economics over the next few years.

We can choose to live in denial, but the fundamentals will win out every time.