Why are dealers so scared to sell product out of

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.

ZD542, I assume you are referring to the manufacturer's markup and not the dealer's, right?

Bifwynne, I imagine the dealer probably buys the product from the manufacturer at a 30% discount. This leaves a 10% markup for the manufacturer. When the dealer sells the product to you at a 20% discount, he too is making a 10% markup. Shipping and insurance can be costly so unless the dealer passes this additional cost directly on to you, it can really eat in to his markup.

There's too much blind acceptance of financial complexities and monetary entitlement.

Agree completely.

Some companies have very profitable margins! Audio Note Japan (KONDO) for example sells their new Overture integrated at 3,200,000 Yen ($$38,800) and sells to the dealer for 898,000 Yen ($10,880). Although some dealers even mark the retail higher! Buyer beware.

(Dealer disclaimer)