How much does audio equipment really cost


Ok we all know what "MSRP" stands for but in actuality what is your best guess the markup is on home electronics? I know that McIntosh gross profit runs around 32% to dealer if you pay full retail price. Anybody have a clue about some other popular brands?
warren2828

Showing 1 response by rwwear

Usually the retail price of an item is determined by the ratio of 5 times what it cost for parts. This usually covers the cost of operation including labor and whatever else like advertising. In general manufacturers give the dealer 40% off and some give 50%. Most allow the employee to purchase at cost and some manufacturers give accomodations to employees and other manufacturers that range from 40 to 50% off. Dealers will sometimes get additional costs cuts for demo gear.