Stan and Chad are onto something with their thoughts of entry fees into the wild and wooly world of audio emporiums.
For claritys sake, are we talking GROSS PROFIT margins here, or simple percentages?
There is a pretty big diff as the number rises.
30% simple on $500 cost = $150.00, or a selling price of $650.
30% GPM on the same $500 = $214.00, or a selling price of $714.
Thats over $60 difference. 40 percent GPM is yet a greater disparity.
Another way to see it is GPM percentages are presented in lesser figures while representing the same outcome.
20% simple mark up = 16.67 % GPM
30 % simple mark up = 23.8% GPM.
40 % simple = 28.57% GPM.
Consequently a dealer can level with someone about the markup, yet still remain veiled in actual terms. Saying Im working on a 30% mark up, by can give you 20% off his 30% = $214 profit, while the 20 % discount given reveals itself only as $42 off his or her, list.
GPM figures in other items than sheer profit. Most retail outlets use GPM rather than simple percentages. Best Buy, JC Pennys, etc.
Its important to know what language is being spoken whenever possible. Albeit this point can remain forever undisclosed or unrevealed and thats indeed the dealers prerogative. .. yet a pretty good sales tactic.
Just thought Id share that bit.
No one ever pays more than he or she can justify anyhow. Ever. Regardless the overall value or deal itself. Well perhaps the utmost uninformed and naïve, or wildly desperate.
Around my area it seems all one needs is lots of cash thats burning a hole in ones pockets, or a contractors license. Take a look at some makers website if you think otherwise and call a few of their dealerships. Youll see what I mean here. The contractor dealers are bountiful around my state and elsewhere. No they dont stock inventory usually . They just say they can get what you want if you specify it to them.
No cash outlay, no inventory, no demos, and in some cases no store/office fronts either.
Geeezzz Louise! That way ANYONE could be a dealer! How hard is that?
I wonder how many folks looking for a lets say medium pricey component for the first time, runs into someone dealing out of their home. Goes there to see or hear one like it, and talk to that dealer, never having met them before or knowing anyone who has as well.
In the deal itself for an in the box fresh device has a waiting period for it to be either drop shipped or for you to return to pick it up or for it to be set up by the seller.
Do you think they would hand over 5K or so just then and there?
Would you?
I believe in home dealers will also have that obstacle to overcome, more so than BM dealers. Though its not a biggie if the dealer is on the up & up for then a fair to each down payment should then suffice to enter into the deal.
Only one BM dealership around here which has stood for the longest has another view on obtaining longevity. They diversified. The McIntosh dealer here also has a Disc sales outlet/store in the store itself, and a high end car audio installation outfit on site. They are also the integra dealership here. They dont discount as a rule from MSRP, and Ive found them to be above it now and then by as much as a couple hundred bucks.
Theyve been keeping their doors open now for decades though. I suspect it isnt all by sales of audio gear alone.
That example is why Im inclined to open a high end shop myself, yet it would be diversified indeed. High end audio, car wash, Laundromat,, pool hall restaurant, and lounge . In a single high rise building.
Or just get a contractors license instead. Which ever is easier . Oooh, theres this just rent someones license instead! Thats done all the time as only one is needed and it doesnt have to be the principally interested or named party in these parts.
regardless how the BM dealers go, we will adapt to some other path, or quit buying stuff altogether.
Depending on how the economy goes, freeze dried food, water, giger counters and guns might be of far more value. ;-))
For claritys sake, are we talking GROSS PROFIT margins here, or simple percentages?
There is a pretty big diff as the number rises.
30% simple on $500 cost = $150.00, or a selling price of $650.
30% GPM on the same $500 = $214.00, or a selling price of $714.
Thats over $60 difference. 40 percent GPM is yet a greater disparity.
Another way to see it is GPM percentages are presented in lesser figures while representing the same outcome.
20% simple mark up = 16.67 % GPM
30 % simple mark up = 23.8% GPM.
40 % simple = 28.57% GPM.
Consequently a dealer can level with someone about the markup, yet still remain veiled in actual terms. Saying Im working on a 30% mark up, by can give you 20% off his 30% = $214 profit, while the 20 % discount given reveals itself only as $42 off his or her, list.
GPM figures in other items than sheer profit. Most retail outlets use GPM rather than simple percentages. Best Buy, JC Pennys, etc.
Its important to know what language is being spoken whenever possible. Albeit this point can remain forever undisclosed or unrevealed and thats indeed the dealers prerogative. .. yet a pretty good sales tactic.
Just thought Id share that bit.
No one ever pays more than he or she can justify anyhow. Ever. Regardless the overall value or deal itself. Well perhaps the utmost uninformed and naïve, or wildly desperate.
Around my area it seems all one needs is lots of cash thats burning a hole in ones pockets, or a contractors license. Take a look at some makers website if you think otherwise and call a few of their dealerships. Youll see what I mean here. The contractor dealers are bountiful around my state and elsewhere. No they dont stock inventory usually . They just say they can get what you want if you specify it to them.
No cash outlay, no inventory, no demos, and in some cases no store/office fronts either.
Geeezzz Louise! That way ANYONE could be a dealer! How hard is that?
I wonder how many folks looking for a lets say medium pricey component for the first time, runs into someone dealing out of their home. Goes there to see or hear one like it, and talk to that dealer, never having met them before or knowing anyone who has as well.
In the deal itself for an in the box fresh device has a waiting period for it to be either drop shipped or for you to return to pick it up or for it to be set up by the seller.
Do you think they would hand over 5K or so just then and there?
Would you?
I believe in home dealers will also have that obstacle to overcome, more so than BM dealers. Though its not a biggie if the dealer is on the up & up for then a fair to each down payment should then suffice to enter into the deal.
Only one BM dealership around here which has stood for the longest has another view on obtaining longevity. They diversified. The McIntosh dealer here also has a Disc sales outlet/store in the store itself, and a high end car audio installation outfit on site. They are also the integra dealership here. They dont discount as a rule from MSRP, and Ive found them to be above it now and then by as much as a couple hundred bucks.
Theyve been keeping their doors open now for decades though. I suspect it isnt all by sales of audio gear alone.
That example is why Im inclined to open a high end shop myself, yet it would be diversified indeed. High end audio, car wash, Laundromat,, pool hall restaurant, and lounge . In a single high rise building.
Or just get a contractors license instead. Which ever is easier . Oooh, theres this just rent someones license instead! Thats done all the time as only one is needed and it doesnt have to be the principally interested or named party in these parts.
regardless how the BM dealers go, we will adapt to some other path, or quit buying stuff altogether.
Depending on how the economy goes, freeze dried food, water, giger counters and guns might be of far more value. ;-))