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 ultrakaz

Generally speaking, I would guess at least 1:5 from manufacturer to MSRP. Dealer cost would be about 40% less than MSRP. Keep in mind that there are spiffs and other incentives/accomodations (free shipping, bulk purchase, etc.) that manufacturers offer to their dealers. So even though a dealer may show you their price list it isn't always what they pay for it. Cables are another story.