2. misc-audio
  3. 1354682622

Why are dealers so scared to sell product out of

state. I was calling a few dealers out of state looking for better pricing on a product. Another reason I'm trying to buy out of state is to save the high sales tax in Southern California. A couple of dealers I talked to refused to sell product out of state.They said they have an agreement with the distributor not to sell out of state. It's amazing how distributors have such a hold on the retailer. High-end audio Isn't exactly setting the world on fire yet they have all these restrictions for the retailer. I can buy a rolex watch out of state or even a ferrari. Why can't I buy audio equipment out of state if I choose to? Yes, I know there are mail order companies that carry lines they can sell across state lines. The problem is these firms sell at list price and I'm not going to pay list for anything including audio equipment.
taters
tpreaves's avatar
tpreaves
2,686 posts
 
Some of the dealers will work with you regardless of these dealer agreements.

If they cheat their suppliers, what do you think they'll do to you?
donjr
1,335 posts
 
Makes perfectly good sense to me for so many reasons I can't count them on two hands.
frogman
7,436 posts
 
I don't understand the aversion to paying list price when buying new; buying used is a different story. I understand wanting a good deal, but the price of a new item is, well....the price. If the item had a list price 10 or 15% lower that what it is currently, would we then stop feeling the need to expect an additional discount? I doubt it.
onhwy61's avatar
onhwy61
5,215 posts
 
If they compete solely upon price profits for dealers will fall. At the same time their costs will remain the same. In the short term a few consumers will benefit, but in the longer term the number of dealers will decline because of low profits and in the end state it is possible that only one dealer will survive. Do you really want to buy high end audio from Amazon? There will be no service, no advice, no system matching, no demos, no trade ins, just a good price. But wait, they're a monopolistic seller, they don't even have to give the consumer a good price.
marakanetz's avatar
marakanetz
5,473 posts
 
Competition is the main driver of economy, but I guess it's unfair for the business owners at higher-taxed states be affected by tax difference vs. other cheaper states. If I were dealer and would be affected by this problem, I would simply quit ordering particular product sooner or later as unprofitable waste of time and resources.

Your options are as follows:
1. Bargain with dealer for the better price
2. Drive out of state if that will worth difference
3. Purchase from dealer for asking price
4. Choose another product that has larger room for options.
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