What is the average dealer mark up?


What is an "average" mark up on quality or high end audio gear? I realize that there are many manufacturers who force dealers to hold this tight and not disclose, but surely without naming specific manufacturers there are some here that do in fact know the mark up.

Let the fun begin!
128x128badger_erich

Showing 4 responses by br3098

richopp, crustycoot and 8th-note are spot on. With all due respect, most of you guys have no idea of what it takes to open, run and maintain a B&M audio business. To paraphrase an old saying, the best way to make a small fortune in the audio business is to start with a large fortune.

Just a thought: when you audiophiles shop for other gear, do you ask what it costs to manufacture or what the retailer paid for the product? You might just try that the next time you buy a case of Budweiser. Or a piece of furniture. Or a car...

Maybe we should start a support group for recovering audio dealers?

That said can you blame a customer for attempting to secure a better price?
@4425 - no. Everyone wants the best price

You would think they would advertise to a highly selected mailing list.
@larry5729 - most dealers do this; at least the successful ones

Let me offer some special words in retail that mask the real costs and flow of money
barryaudiophile - I don't know what products you carry as a dealer, but I never had a single audio manufacturer or distributor offer a co-op, rebate, spiff, show special (only to customers) or program (whatever that means). Most audio manufacturers and distributors are small, unsophisticated firms from a marketing perspective

Some of those employees lived right down the road from you, right next to the English teacher...
@wesheadley Well said. Does anyone else remember when the English teacher could live the "middle class" lifestyle?

@badgerms4
Have you ever imported a product into the U.S. from another country for the purpose of resale? No, I didn't think so. Please review this: USITC Harmonized Tariff Information. Some import tariffs that importers (distributors) have to pay for electronics are over 25%.

And how much product have you purchased and warehouse, in expectation of future sales to *audiophiles*? I don't know about you, but in my business there is a cost of capital. That changes year to year but it's something. And then you have to warehouse and insure the gear you are importing. If you can figure out how to do it for less please let my favorite audio distributors know how.