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
Suppliers contract with distributors or dealers under binding terms and conditions of sale, and distributors must abide by these terms in order not to breach, which could trigger legal recourse. Dealers also need to abide by such terms and conditions, in order to qualify and that they agreed to in becoming a dealership for a given line. This is to ensure that the sales channel to a regional market is adequately covered and that dealers can be ensured of serving a given territory and be not trampled on, or in competition by other dealers carrying the same line. This is an industry standard and is practiced across a broad base of sectors. To me it is IMCUMBENT on the purchaser to savvy up on his/her negotiating skills and get the best deal possible. Oh yeah, negotiation skills, something they don't teach in grade schools, and it's a shame.
Mt10425, rather than wait to hear an argument that convinces you, why don't you make a coherent argument for why a retailer should sell you something for less than everybody else is readily willing to pay?
Bifwynne,

With regards to markup, generally speaking, the markup on electronics is about 40%. Speakers and cables/accessories is about 50%. Markups do change, however, as the cost of equipment goes up. When you get into very expensive equipment, the markup is usually lower. Keep in mind that the info I'm giving you is not absolute; its just a general picture of the industry as a whole.
Thanks Zd. If your right about mark-up, which I would have guessed you are, I'm surprised that every dealer I spoke to about pricing my new speakers acted like he was cutting his throat with the absolute minimum price he could offer. One dealer told me that the margin on my new speakers is thin and there just wasn't that much he could do. If it was only one guy telling me this, I'd take it with a grain of salt. But for three dealers to come up with practically the same price discount causes me to raise an eyebrow. As I said, the dealer I usually work with doesn't even carry the speakers in inventory. He orders them from a factory warehouse and then flash transfers title as soon as they are delivered. Seems to me, that with so little risk, he would have more to work with in terms of dealing. OTOH, my speakers are a tad pricey for the general market. Maybe the dealer figures that my speakers are not a volume, typical supply and demand type item. Which may mean that the time to make his margin is when he makes a sale since the volume is thin. Just guessing.