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!
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Showing 1 response by itsjustme

numbers from above are largely correct, but like the fiances of car dealers, it gets more complicated.  most dealer cost sheets will have the 60% (40% discount) as the baseline.  But then there will be a few more points for larger orders, and occasional incentives to move stuff.  The first unit, to be a floor demo model, and maybe loaned out repeatedly, may garner an additional 10%. There may be cooperative advertising allowances.  And of course, some dealers will modestly discount especially in a package.  Its a lot of money, but as noted, there are a lot of costs to retail in a low volume business -- and we can be a demanding lot.  And as also noted, most manufacturers work on 5+X parts --> retail or maybe 4X parts + labor (which is a bigger proportion in small volume, weird component high end compared to a mass market product that can be efficiently produced by automated SMD lines,and stuffed into a blow-mold box.
Think direct sales is the answer?  Now the manufacturer needs to cover hand-=holding, free in-home demos and the depreciation of "used" equipment, more advertizing, etc.  It saves less than you might imagine.
The value from dealers, if they truly help you sort through alternatives and find the component that a) YOU like and b) delivers high value, is very, very significant.
G