Why can you buy a car at dealer Invoice but audio


Equipment you have to pay retail and if the dealers in a decent mood he might give you 10-15% off.
taters

Showing 2 responses by mrtennis

yes, a dealer does not make a 40 % ptofit on electronics, or a 50 % profit on cables. as has been stated previously, there are fixed and variable costs to consider.

however, a dealer who runs an efficient business can maximize his profit.

let's go back to the car dealer analogy.

if a buyer offers a price that is too "low" but the dealer makes some profit, he is better off selling it unless he thinks he can get more for the car in a short period of time.

an audio dealer is better off making a smaller profit if he can do a volume business, otherwise his money is tied up in inventory, waiting for a customer to buy the product at a higher price.