What is the average dealer mark up?

@badgerms4
Have you ever imported a product into the U.S. from another country for the purpose of resale? No, I didn't think so. Please review this: USITC Harmonized Tariff Information. Some import tariffs that importers (distributors) have to pay for electronics are over 25%.

And how much product have you purchased and warehouse, in expectation of future sales to *audiophiles*? I don't know about you, but in my business there is a cost of capital. That changes year to year but it's something. And then you have to warehouse and insure the gear you are importing. If you can figure out how to do it for less please let my favorite audio distributors know how.

The same btw is true of most things, including cars. Which is why car dealerships are so incredibly profitable. Another shocker, the markup
at wholesale is about the same. Double. Or more

As others have noted that is completely false.

Well, you think wrong.

Badger_erich

I have a very close friend who owns a high end brick and mortar retail audio store (remember those) he is kind enough to sell me his products at his dealer cost and has been doing that for decades so I know exactly whay he pays for his gear. 

Most electronics have a 40% markup, though not all. Some speakers have 50% but not all brands, some are still 40%. Cables can be a little higher depending on the name brand, usually 50% and he sells one name brand that has 60% markup but that is unusual. So, the answer to your question is 35% - 60% markup depending on the name brand. The problem is that they rarely do high volume. He may hit a home run one day and strike out the next day. Take into consideration, rent, salary’s for employees, insurance, taxes, etc and you soon realize he isn’t getting rich. There’s an old joke in high end audio that asks how do you make a million dollars in high end audio, you start with 2 million dollars. He does it because he loves it, which in my opinion, is the right reason to own a high end audio store!  Take care and stay safe.

Scot

I agree with your comments on Tekton.  But did you ever feel guilty paying your friend just 5% above cost?  Must have been a really good friend.