Dave and Troy
1. I wasn’t implying that was dealer profit margin. I know how to calculate a P&L. Been doing that for two decades now.
2. Dealer discount IS correct. Most lines 40% off, some 50%. Those in demand slightly less. REL is about 1/3. Same with Audeze. I have close friends that are dealers. If you have cash sometimes you can buy current stuff at 60% off if manufacturer needs capital.
3. Dealers SHOULD make money. God Bless America we are capitalists. What I can’t stomach is a dealer acquires right to sell XYZ Speakers Inc line. Has 1 demo pair of XYZ reference speakers he bought at 50% from manufacturer. Inventories no other pairs. Sells to public at maybe 10 off. You tie up money in inventory, you deserve to make your margins. It’s called return on capital. BUT if you stock nothing and order the pair from manufacturer AFTER securing $$$ from the customer, in my mind you should make 10-15% on that deal. I’m sure you will disagree, that’s just my opinion. OTOH, I am financial professional with 25 years in the business. I know what a market rate of return is.
4. It’s a tough business. Guys now are trying to make a living. Previous iteration of shops built generational wealth from selling high end audio at crazy margins. See Lyric, Sound By Singer, Stereo Exchange. It’s tough to be a brick & mortar these days. My comments meant as no disrespect. I don’t bemoan that there is no place left to audition. You don’t even know me, how can you say that. Haven’t auditioned gear in a shop in almost 20 years. Dealers I know let me home audition sometimes, but mostly I buy based upon reviews and comments from those whose opinions I respect. Most times it works out fine and I like it when I receive it. Sometimes not which is why I buy used/demo primarily and I will trade out at a loss if I make a mistake. PS Audio Amp. Bought demo cheap. Liked it, didn’t love it. Sold it 9 months later at slight loss. Bought Synergistic Black Box Cheap. Like, don’t love. May or may not sell. Bought Synergistic Atmosphere XL at 55% off. Love it. Keeper. Cost of admission.
Wish you guys best of luck. Sincerely.
