2. misc-audio
  3. 119765-2215

Is the main reason audio equipment depreciates so much is

1.Because technology is always changing and people always want the latest and greatest.
2.It is expensive to repair when it breaks.
3.It has always depreciated a lot since the inception and that is just the pattern it has always stayed in.
4.It is overpriced to begin with.


taters
ebm
9,311 posts
 
Not always true i had Mac  Mc275 and sold it for more than 4 times what i originally paid!!!

lalitk's avatar
lalitk
5,637 posts
 
4. Overpriced.  

But this doesn't necessarily means that a good equipment should depreciates at ridiculous prices (a sad trend on Audiogon lately).  A well built equipment should give you years of enjoyment regardless of what you paid and its current worth.  

Just saying. 
jea48
4,679 posts
 
taters said:
The Item cost with parts and labor included was 7.00. The retail price was 69.95. So like you said about a 10 times markup from what it cost to it’s retail price.

How about the manufacture’s overhead costs?

Profit mark up?

Distribution costs?

___________________

$ Total


//


Dealer cost?

High end? Usually 60% of MSRP plus shipping.

Overhead costs?

Wages?

_________________

$ Sub total.

Profit Market? Shoot for maybe 10% If lucky 5%.

Why do you think B&M dealers are going out of business every day?

_________________

$ Final sale price. Always MSRP?




theo's avatar
theo
2,718 posts
 
#1 on digital and #3 on everything else. With an average of 40% profit at MSRP, and most dealers will discount 10-20% so that drives the used market down to below dealer cost at resale.  In my years here on Audiogon, it seems that 50% of MSRP seems to be the place that everyone starts and then negotiates from there. I think a dealer will usually offer 20-25% of MSRP or show more but a portion of the higher trade allowance is reduced price from MSRP.
After all he must then turn around and try to make a profit at resale.
But then in the end, our hobby is not all about investment and monetary returns. So the years of enjoyment we gain from our equipment captures that investment to enjoy music and the depreciation is merely the fee of admission.
taters OP
1,149 posts
 
Jea,

If you are saying the dealers are only making 10 percent after expenses that sounds about right. The manufacturers on the other hand are making a lot higher profit margins than that. 

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