Should I expect a discount from dealer for buying and installing complete system


I am getting ready to purchase a complete Home theater system from my dealer. It will probably end up at or over $17000. I am buying all the equipment from him and they are doing the install. He sent me the proposal today and I was surprised that there was no package deal. All the equipment which includes a receiver, a 9 speaker Atmos system. I may only need 7 if I can use my already installed rear ceiling speakers, cables, 65" TV 4K DVD player some other things I need. plus speaker stands. It's a complete redo of my home theater and will require extensive installation as my home theater room was done when we renovated and the room was frame. All the wiring is hidden behind the walls and all the equipment is in the closet. A lot of holes will be drilled and crawling under the house and going into the attic to do the work. Am I out of line to expect a solid discount on the equipment?
Thanks,
Bob
galleybob

Showing 8 responses by jea48

  1. 1  Remove existing receiver, DVD player, VCR. Install new components and speakers.

  2. 2  Pull new HDMI and CAT6 cables to TV location

  3. 3  Pull new sub cable to under TV location

  4. 4  Pull new speaker cables to front Atmos position. Use existing Sonance for rear Atmos.

  5. 5  Remove Samsung TV and mount new 4K Sony TV

  6. 6  Install new 4K AppleTV for Theater, existing AppleTVs for zone music playback

  7. 7  Bypass inwall volume controls

  8. 8  Program Universal Remote Control for Zone 2 (master bedroom

  9. 9  Install surrounds and wireless system.

  10. 10  Mount existing Samsung in Son's room

  11. 11  Calibrate System

  12. 12  Train client on Sony Web interface for zone use.

Nothing there requires a licensed electrician. And just a guess neither of the two men will be electricians. If and when the dealer needs an electrician my guess would be he has an electrical contractor he uses. 
  
As a rule low voltage communication/data cable installers are paid about half of what an electrician is paid.   
Note: There are good and bad low voltage cable installers just like there are good and bad electricians.



$125 an hour per man......

Is it customary to get bids from other dealers and installers or to just go with the one who has put the time into talking, and demoing equipment. I think since dealer has put in the time I would not seek other bids
Yes, shop around! When you buy a new car do you shop around for the best deal?

If I may ask what brand/manufacturer is the receiver and speakers?

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Yes, on the equipment, cables, and speaker stands. No on the installation labor.
I doubt the dealer has any room to discount the 65" TV.


Did the dealer give you a breakdown price showing each piece of equipment,  cables, speaker stands,  65" TV, and installation labor? Or did he give you a package price? He may be giving you a discount.

You should have checked the individual retail prices of the items first.

10% minimum discount on the equipment, cables, and speaker stands. Start out with a 20% discount.

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$250 an hour may be expensive. If I hired one guy $125 an hour it would probably work out to the same amount.

Installation is $250 an hour for a 2 man crew.

The dealer’s labor rate charge is $125 per man hour.
$3000 / $125 = 24 man hours. This is the total number of hours the dealer figured to do the job. Plus tax? (If the dealer is smart he added a little fudge factor to the labor hours he guesstimated to do the job.)

That’s not what the worker is being paid though. And there is a good chance there is lead man and a helper. (Lead man makes more money than the helper, usually.) The dealer has other costs than just the wages he pays the worker. FICA, workman’s comp insurance, unemployment insurance, Liability insurance, health benefits?, service van, insurance on the van, maintenance on the van, gas, tools, ect. On top of this he adds a percentage for overhead charges. He then takes that total times a percentage for profit markup.


I have no idea what the going rate is for an audio/video total install in Berkeley, CA. The dealer's price may be fair. Call around to other dealers in your area and ask what their hourly man hour rate is for the same comparable work.

If there are other audio/video dealers in your area I would compare prices. Check for independent customer reviews.

I would recommend you buy all the equipment and have it installed, setup, and calibrated, by the same dealer. Saves on finger pointing if there is a problem.



https://www.trackstreet.com/blog/map-pricing-vs-msrp-whats-the-difference

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galleybob OP Said:

I get a lot of criticism for choosing Sony and I pretty much know that people just have an attitude without hearing it. I was pretty much shocked when I found out that this business was selling Sony. As I have said they are extremely high end and have always sold Anthem.
Or it could be the dealer has a higher profit margin in the Sony. It’s very possible.
By all means I would listen to both HT receivers again. Call the dealer and ask him if he has the Blu-Ray movie, first release, "John Wick". The sound track is recorded in, "English Dolby TrueHD Atmos Mix". If not you should buy a copy and take it with you.


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galleybob said:
3-24-2019
8:35pm
Like I have said this isn’t a simple installation as every wire including the sub is hidden in the walls as the room was just a frame when my 5.1 system was installed. All the electronics are in a closet so it will be a lot of work to do the wiring.

galleybob said:
3-23-2019
1:45am
The labor estimate is $3000. I think it will go up though. When the installers come they will go under the house to see the feasibility of installing wired surround sound speakers. The owner thought it would be labor intensive and suggested the wireless surround. I have to see the difference in price because with the wireless I need the wireless transmitter plus the Parasound amp. I would prefer the surrounds to be wired so I am hoping it will be not to hard to install the wires through the back of the house.


galleybob said
3-23-2019
1:45pm
It’s a complete redo of my home theater and will require extensive installation as my home theater room was done when we renovated and the room was frame. All the wiring is hidden behind the walls and all the equipment is in the closet. A lot of holes will be drilled and crawling under the house and going into the attic to do the work. Am I out of line to expect a solid discount on the equipment?
Thanks,
Bob

A lot of holes will be drilled and crawling under the house and going into the attic to do the work.

All hot and dirty time consuming work!
(One man will be working on the clean main level of the house, while the helper will be working in the crawl space and attic.)

Two men a day and a half.... I hope the dealer guesstimated enough time for the project.

Questions.
How will the cabling through the crawl space be supported?
How will the penetrations drilled though the floor for the cabling ran from the crawl space be sealed?
If any holes are cut in walls who is responsible for patching and painting?

Is the $3000.00 figure for labor a hard price or is it just a guesstimate? Are you paying $250.00 per hour (two men) even if the cost, (hours worked), goes above the estimated $3000.00 price? In other words say the job takes longer than a day and a half, (two men 12 hours each), are you responsible for the cost of the additional labor hours worked?

IF, the $3000.00 is a hard price, you might want to rethink your approach of asking the Dealer for a discount on the equipment, cables, and speaker stands. You might just ask him if he has any wiggle room to give you a break on those items.

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No I don’t think think $3000 is fixed, it has to be guesstimate until they actually go under house and into attic. Also I keep adding what I want done. I am going to add Bluesound Node 2i and also I want my 55” tv mounted in bedroom and bedroom tv mounted in my son’s room.
They will patch and paint
Without a hard labor cost I would recommend a cost plus not to exceed price. That allows the Dealer some room for sight unseen, unknown, problems his men may run into. It also means if everything goes better than estimated you are only charged for the actual time the men were there.

The owner came to my house and saw the work that needs to be done but he did not go under the house or go to the attic.
No way he was able to give you a labor dollar cost. He just shot you a by the hour cost of $250.00, (2 men), per hour rate. What ever it takes to the job that’s the price you pay. How well do you trust the Dealer?


As I have said all the work had been done when the room was frame so it may not be as straight forward as he thinks.
He thinks? Unless he spent some time investigating the existing cabling rough-in he doesn’t have a clue how it is done. Did he pull any cable jack, or cable pass through, wall plates to see if the cables were just pulled raw cable through bored holes in the wall studs? Or was conduit installed or smurf tube (ENT) and the cabling was pulled in that? Size of conduit/s?

How deep is the crawl space under the house? 12"? 18"? 2ft? 3ft? ???
How much space is there for a man to move around in the attic. Any duct work in the attic? How deep is the blown insulation?

If the installers find that the installation is complicated and the price of the install goes up a lot I may not want to go ahead. The problem is he won’t send anyone out until I sign contract and pay half.
The Dealer has given you a quote for the equipment, 65" TV, speaker stands, and cables. Agree? He should also be able to give you a price for installing the equipment, hooking it up, calibration, and showing you how to operate everything. Same for installing the 65" TV. Same for the relocation and installing the existing TV.
You and the Dealer should be able to agree with the dollar amount for all of the above. Agree? If he wants half up front just say you do not have a problem with that providing the audio/video equipment is delivered to your home and not held at his store. That’s fair isn’t it?

As for the hard part installing the concealed cabling. It sounds like, he thinks, you are agreeing to pay him $250.00 (2 men) by the hour for the labor cost to do the job. No cap $$$$. You are just paying the dealer by the hour. If you sign the contract you best understand what you are agreeing to. To be honest it’s not unusual to pay by the hour for installing cabling with your type of situation. The dealer doesn’t have any idea what his men are going to run into. Do you trust the Dealer?

The problem is he won’t send anyone out until I sign contract and pay half.
I wouldn’t sign anything until you understand exactly what you agreeing to.

Maybe the Dealer charges a fee, hourly rate, for estimating labor to do a job such as yours.
If that is the case does he need to send two men to do that. But maybe he does. I find it hard to believe he doesn’t have a job install estimator. Apparently people trust him enough to pay him for his services by the hour. $250.00 per hour....... That’s a decision you will have to make.

Would it make any sense to pay him $250 before signing contract to have workers come and give me a true estimate. If I agree I would think I could apply the $250 to the labor. If I doesn’t agree he would keep the money.
That’s up to you.... It’s your money. Just a guess it could take 2 or 3 hours. Depends if the guy the dealer sends out knows how to estimate the man hour labor for a job. And there is a very good chance the time clock starts running when the truck leaves the dealers install shop.

i don’t know anything about support for cabling and sealing. My assumption is that they will do what needs to be done
Rule #1, never assume anything.

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