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 1 response by richopp

OK, as another former dealer, let's break down his/her costs for the labor.  Yes, paying the people 30-50/hr is in line with your area, which is a very expensive area to do business in.  The truck the labor people use cost about $125 every time it leaves the shop--payments, taxes, insurance, licenses, regular maintenance--you do want it to make it to your house, right?  So, no, he does not pay the people 125/hr, but it costs him a bundle to drive around in a van/truck with two people on the clock.  Maybe 125 is his break even point, but then why be in business unless you make enough to STAY in business?  Gotta be some profit in there somewhere.

As for the gear, there is NO MONEY in TV's at all.  Sony used to mark up 21% and my overhead was 23%, so I lost money on every Sony I sold.  I had to make it up on delivery and installation charges, unfortunately.  If you loaded it in your car yourself, money went out my door.

As for the rest of the gear, I have no idea but people on here who sell or have sold that stuff have posted some info.  I like the idea of asking if he would do it for 15K and see where it goes.  He knows how much he is making and will do what he can to save the sale, I would guess, since you are a good customer of long standing.  OR he might offer you a "free" service agreement of some sort to ensure your complicated system is working to its maximum capability.  I would be surprised if you did not have at least 2 visits in the next few months to make adjustments.  That truck still costs 125 every time it rolls whether you are paying or not, so that MIGHT be a better deal than a huge discount up front.  As I tell most people, when you buy a car, you are buying the warranty, nothing more.  Same here in some respects.

Ask--all he can do is counter at a higher number or say no.  Either way, you MUST have a agreement for support for the next few months or so.

Cheers, and enjoy the music!!