jwd@cs.brown.edu (James W. Durkin) (03/01/91)
When purchasing a complete high-end system (amp, pre-amp, speakers, source,
and cables) in the $5K-10K range from a single dealer, what is a reasonable
discount from list price to expect? I'm not out to trim every last possible
penny from the price (I would like to maintain a good relationship with the
dealer), but neither am I into spending significantly more than I have to.
I know that the margin is different from product to product. I'm just
looking for a good rule of thumb.
Mail is welcome, but the subject might be of interest to others.
>> James Durkin (jwd@cs.brown.edu)ih8rlf0p@serss0.fiu.edu (jim stafford) (03/07/91)
In article <9839@uwm.edu> jwd@cs.brown.edu (James W. Durkin) writes: > >When purchasing a complete high-end system (amp, pre-amp, speakers, source, >and cables) in the $5K-10K range from a single dealer, what is a reasonable >discount from list price to expect? I'm not out to trim every last possible >penny from the price (I would like to maintain a good relationship with the >dealer), but neither am I into spending significantly more than I have to. >I know that the margin is different from product to product. I'm just >looking for a good rule of thumb. > >Mail is welcome, but the subject might be of interest to others. > >>> James Durkin (jwd@cs.brown.edu) This is the first time I have logged into this group, but couldn't resist making an attempt to help you out. I was the service mgr. at a very highly regarded high end dealer for about 8 years (Sound Components in Miami). I could write a book, but I'll try to keep it a bit shorter than that. Please e-mail if you want further gory details. The price structure (mark-up) on most high-end audio is: electronics 40pts, speakers 40pts (some 50), cables 50+pts, and such things as cartridges have no discernable pattern (I remember Grado cartridges that cost about $9 and sold for over $80, but most are around 50pts). By points, I mean: retail * ( points/100 ) = dealer cost In general, the only thing that is lower than 40 is video and other mass marketed stuff. Discount? It depends on the dealer. A true hifi boutique doesn't (at least in theory) discount. They claim that they provide such a high degree of service and expertise, with such limited quantities, that it isn't possible. Other stores, usually large chain stores with a high end "section" can afford to come down more. Products with very exclusive distributions (ie Levinson, Goldmund, etc.) are less likely to be discounted. The best way to get a discount is to play their game. Many stores have strict policies about who gets an audition. If they ask "Are you ready to make a decision today?" say yes. Even if you're not quite ready, you can easily find some fault that allows you to delay any decision. If they can put together a good sound (with your recordings!) tell them you're very interested but... Make sure that what they want to sell you is *exactly* what you listened to. This is a common misrepresentation, especially with cables and phono arms & cartridges. If you're considering a phono front end, be very careful, since the art of setting up a turntable is becoming a lost one. In general, you need to tell them that you're interested, but found the upper brass a trifle opaque (uh-huh) and that you're going down to Joe's Hifi to hear the Dominator X-1's...which you may want to do, and run a similar "game" with them. I realize that this is starting to sound worse than buying a new car, but this is what worked, at least in the store I worked in. Make 'em wait! Depending on many variables, you be able to get 10-12% off retail. You may be able to save a bit more by installing the system yourself. If you do find the system you want at a good price, it's now time to become very picky. When pushed on price, the salesman may want to slide a store demo by you. If they attempt to give you a piece of equipment (inc. cables) that is not in a sealed box, just say no. The exception to this is a turn- table, but once again make sure that it's not the one that was sitting on the shelf. Also, make sure they give you the latest version of anything unless other arrangements have been made. Actually, a demo may be a good way to save some $$. An amp has the best chance of standing up to store abuse (no moving parts). Never buy a used CD player! I hope I didn't scare you away from buying a hifi, but you can never be to careful when dealing with salesmen. good luck! Jim Stafford
Mike.Reaper@f421.n109.z1.fidonet.org (Mike Reaper) (03/11/91)
[] In response to your gory stories about audio dealers, let me
just re-affirm dealers are damn leeches.
A 50% markup is standard practice. The best way to cut this is
not to shop around store to store, working one guy against the
other, but instead to find a good place and stick to it. Get to
know the manager, or, better yet, the owner. Working with one
company over time does so much more good for you both than the
endless searching & price grubbing common in new-car shopping.
/mr
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