Do Dealers think it is sinful..........


..... to give a customer a break on the price of high end audio equipment? is there something ethically wrong with this? why is it that i can negotiate down the price of a car or real estate many thousands of dollars, but i cant even get a discount on something the dealer (1) doesnt stock, (2) will not let you bring home for a day. i feel that when you are spending big $, like 8k + on a sale there should be some give and take. what do you think?
avnut
kthomas is right. we all need to use the same math. to clarify my prior post: (1) the lion's share of highend harware (speakers, amps, etc.) is sold on a "40 point" margin to dealers, i.e., if the "retail" on an amp is $10,000, the "dealer cost" is $6000 + freight; (2) much of the wire/accessory stuff is "50 or 60 point" product, i.e., if the msrp is $1000, the "dealer cost" is $500-600 + freight. it does cost a lot for a dealer to inventory product, particulary since competant one's use at least some of the inventory for auditioning. the auditioning/demo equipment usually can't be sold as "new" and thus provides a lower margin to the dealer. all of this, and more, must be factored into the "discount calculus."
I thought that was what I posted? Anyway, IMHO, I think it is unreasonable to expect a High End dealer to discount 15% or 20%. After all, they need to make enough money to stay in business. For those who have owned a business, all of the expenses incurred in the running of the business are all too familiar. The dealers who maintain a decent inventory especially get hosed because they pay tax on it the same as if it was profit resulting from sales.
I don't know what dealer you worked for but I highly doubt that high end speakers have 100% markups.
I don't have any experience working for an audio dealer, but just from watching prices on various sites for "demo" speakers, 100% markup doesn't seem that unlikely. I'm sure many brands don't, but there appear to be many that do.
Don't get me started! If you are lucky there are 3 high end dealers within reasonable driving area. And probably #1 is a dealer of the very high end (Wilson, Levinson) who is an arrogant, know-it-all, snooty upper crust jerk who says that everything sounds different but there is no need for a loaner piece for you to try out in your home or room. His stuff is so good it will sound the same at your place and don't bug him for discounts and there is a 20% "restocking" fee if you don't like the sound and bring something back, and by the way that thing you picked out is ok but not that great so come back when you want to spend some real money, oh and also by the way your taste in music sucks (you don't like classical) so why don't you go out and get some cerwin-vega speakers and receiver. Probably, #2 is a mid-to-high end dealer (adcom or NAD to CJ) and is ok to deal with, IF and only IF you buy some stuff and make him some money, then after you are ripped off the 1st time he will feel that it is now ok to treat you decently. Probably, #3 is a variation on #1 or #2. Thus, one or 2 lously dealers significantly limit your ability to get high end gear, since the third one probably doesn't have everything you want. I lived in 3 big cities, and found this to be the case. This is why I think internet shopping w/ a 30 day home trial is a great option (i.e. Magnepan (actually 60 days), PS Audio), rather than waste your time with some idiot with bad hearing who probably knows less than you and who provides no added value.
I for one do not have the time to suck up and be buddy-buddy with one of these guys just so I can get a good deal in 3 months when I need something else and hope the guy is still there to remember me, and I don't think it reasonable for the high end to expect me to do so. I also don't have time to sit around in a strange room with different equipment listening with strangers all day, and don't believe this reasonable either. I get my initial impression, take the thing home and try it out, if I like I keep, if not then not. To me this is reasonable. Less than 1/2 hour in the store wasting everyones time. I would prefer to get something over the internet or mail order with a good return policy just so I don't have to deal with dealers. Certainly there must be others like me who think the whole hi-end purchasing process is completely screwed up? I think what it comes down to is you must accept the fact that you can't buy what you really want. If you are down to 3 awesome preamps in the same price range you buy the one you get a deal on (saving $1000), not the one you like the most, which is a little better, but not so much better that you are willing to lose your dignity on the price. For you dealers out there- I am not really that bitter, I just think most dealers are lousy this fact is not made better by pointing out that some dealers are good, probably those who read the info on this site. - thanks for letting me participate in this discussion.