Agree with Stanwal. The margins in the industry when mid to high end audio was in demand when people had lots of disposable moeny to spend kept them going.
However, even then, most retailers were moving to 'custom installations' where they can charge $100/man hr to install a system and the money is being made there...not on the components per se. Within this economy, more retailers ae moving in this direction to survive and are now carrying lesser priced components that revove around a home theater set-up.
Carrying high end 2 channel audio and selling for 20 point margin will put a retailer out of business in short order. The margin is too low and many people come look, listen then buy used or where they can get another 5% off. So don't be surpirsed if your dealer doesn't have the stock they used to; they can't afford the carrying costs or have the inventory sit there and if they sell it for a 20% discount, they get in trouble with the OEM and can't make enough to stay in business.
Some audio components are only 30 points and some high end cable OEMs are only 45-50 points. But most HT customers just don't care on the cables and run the cheapest thing they can to het it all hooked up and ae willing to pay $100/man hr for the installation which can really add up to serious money.
The worst of all OEMs are those that protect territories and prices among individual dealers but then have a special program for internet sellers that often do cut prices. I won't name names.
However, even then, most retailers were moving to 'custom installations' where they can charge $100/man hr to install a system and the money is being made there...not on the components per se. Within this economy, more retailers ae moving in this direction to survive and are now carrying lesser priced components that revove around a home theater set-up.
Carrying high end 2 channel audio and selling for 20 point margin will put a retailer out of business in short order. The margin is too low and many people come look, listen then buy used or where they can get another 5% off. So don't be surpirsed if your dealer doesn't have the stock they used to; they can't afford the carrying costs or have the inventory sit there and if they sell it for a 20% discount, they get in trouble with the OEM and can't make enough to stay in business.
Some audio components are only 30 points and some high end cable OEMs are only 45-50 points. But most HT customers just don't care on the cables and run the cheapest thing they can to het it all hooked up and ae willing to pay $100/man hr for the installation which can really add up to serious money.
The worst of all OEMs are those that protect territories and prices among individual dealers but then have a special program for internet sellers that often do cut prices. I won't name names.