Mahan_Stephen@lanmail.ncsc.navy.mil (03/12/91)
Being also a former audio salesman, I have a few additions to the
comments presented in the last issue. First, the formula for the
dealer cost is backwards, the selling price times the points is the
dealer MARKUP. Selling price minus markup is the dealer cost. The
figures given were generally accurate. (Empire cartridges used to have
a cost of about 5-8 dollars, and list prices of 55-75 dollars.)
Equipment such as Yamaha, Denon, McIntosh, KEF, Revox, Nakamichi, etc..
generally conformed to the 40% margin.
I have found that TIMING of the purchase can help greatly in
negotiating a reduced selling price. Traditionally, February is the
slowest month of the year for buying audio. Also, it is the month with
the fewest number of selling days. Unfortunately, the rent, salaries,
utilities, etc.. are by the month, as are the sales quotas. Many stores/
salesmen/managers are getting hungry by the end of the month. A quick
sale during this period may be worth an extra large discount, if it is
made apparent that the price offered by the buyer is on a take it or
leave it basis. (It helps to be from out of town for this one.)
Stephen Mahan
mahan_stephen@lanmail.ncsc.navy.mil
Naval Coastal Systems Center
Panama City, FL 32407