Should I expect a discount from dealer for buying and installing complete system


I am getting ready to purchase a complete Home theater system from my dealer. It will probably end up at or over $17000. I am buying all the equipment from him and they are doing the install. He sent me the proposal today and I was surprised that there was no package deal. All the equipment which includes a receiver, a 9 speaker Atmos system. I may only need 7 if I can use my already installed rear ceiling speakers, cables, 65" TV 4K DVD player some other things I need. plus speaker stands. It's a complete redo of my home theater and will require extensive installation as my home theater room was done when we renovated and the room was frame. All the wiring is hidden behind the walls and all the equipment is in the closet. A lot of holes will be drilled and crawling under the house and going into the attic to do the work. Am I out of line to expect a solid discount on the equipment?
Thanks,
Bob
galleybob
OK, as another former dealer, let's break down his/her costs for the labor.  Yes, paying the people 30-50/hr is in line with your area, which is a very expensive area to do business in.  The truck the labor people use cost about $125 every time it leaves the shop--payments, taxes, insurance, licenses, regular maintenance--you do want it to make it to your house, right?  So, no, he does not pay the people 125/hr, but it costs him a bundle to drive around in a van/truck with two people on the clock.  Maybe 125 is his break even point, but then why be in business unless you make enough to STAY in business?  Gotta be some profit in there somewhere.

As for the gear, there is NO MONEY in TV's at all.  Sony used to mark up 21% and my overhead was 23%, so I lost money on every Sony I sold.  I had to make it up on delivery and installation charges, unfortunately.  If you loaded it in your car yourself, money went out my door.

As for the rest of the gear, I have no idea but people on here who sell or have sold that stuff have posted some info.  I like the idea of asking if he would do it for 15K and see where it goes.  He knows how much he is making and will do what he can to save the sale, I would guess, since you are a good customer of long standing.  OR he might offer you a "free" service agreement of some sort to ensure your complicated system is working to its maximum capability.  I would be surprised if you did not have at least 2 visits in the next few months to make adjustments.  That truck still costs 125 every time it rolls whether you are paying or not, so that MIGHT be a better deal than a huge discount up front.  As I tell most people, when you buy a car, you are buying the warranty, nothing more.  Same here in some respects.

Ask--all he can do is counter at a higher number or say no.  Either way, you MUST have a agreement for support for the next few months or so.

Cheers, and enjoy the music!!
I think 10 percent is definitely fair. I would try for 15 percent.  As far as labor, that's their  rate, I dont think u can argue that. Did they come over to your home before he quoted you labor?  My reason for asking is you dont need a sliding scale on the labor after the job because more work than quoted. My dealer gives me 10 percent off everything and he is extremely accommodating, he doesn't sell TVs, I would check around on TV and just make sure its same price as everyone else. He gave me 10 percent off my anthem, bluesound and cables, all bought at different times
 I listened to the paradigm 75 you are getting,  but I went a different way. 75 are nice speakers. As far as Sony vs anthem,  not even in the same league.  Seriously ht reviews show the Sony having issues with low frequencies with room correction.  But maybe your dealer knows something we dont. You may want to Google this yourself.  The only room correction anthem did not beat out was dirac, but that's in a different price range. Also I believe you will find better amps in the anthem,  they started out as an amp company.  Sonic frontier if I remember correctly.  Like you I went down this road 6 months ago, I did extensive research before buying,  hard earned cash. Sum it up, atleast 10 percent off speakers and receiver.  Rethink your receiver, it is the heart of your ht room. As you research,  look at dates of reviews because these companies make updates.  Good luck Bob. 

Just remember, HT equipment has no longevity. Today’s top of the line system will be “last year’s” model by the time your check clears. And resale on used HT is like used computers - nil. Few receivers are capable of firmware updates that allow them to adapt to new formats, like a transition from 1080P to 4K. And of course that’ll require some cable upgrading as well. You may want to consider separates. Find the speakers you think sound best, pair them with an amplifier that will last ages and buy the processor du jour. The HT technology advances so quickly that just replacing the processor may provide a more forward-thinking and less expensive approach. And by all means, ask for the discount!


I really appreciate the comments. I am really getting a tremendous amount of useful information. I had never thought about a service agreement. That's a great idea.
I don't think that around $3000 is a lot for the amount of work that needs to be done. The owner has been to my house and understands the work involved. As I have said my home theater was installed when my room was just frame and all the wiring is behind the walls. 
I have checked the price on everything except the HDMI cable which I need to check as it seems expensive. Everything that I have checked is list price. I could do better I guess if I bought everything on Ebay or if I looked on Craig's list but thats not what I want to do. 
I get a lot of criticism for choosing Sony and I pretty much know that people just have an attitude without hearing it. I was pretty much shocked when I found out that this business was selling Sony. As I have said they are extremely high end and have always sold Anthem. I have read all the reviews that I can find and they are almost all positive. I read the 
Stereophile review which was a bit negative but it was written I think in 2014 or 2015 and so its not reviewing the current model. If you read customer reviews, most people are happy. I have heard Anthem which is great and I have heard Sony which was great. If my dealer who I trust says I will be better off with Sony, I will take his advice. It's not as though he is making more money on Sony. He could easily suggest the 1120 Anthem which I would have bought but he strongly suggested Sony and not even the top model. I decide to spend the extra $500 for the top of the line even though he said I don't need it with the 75F speakers.
Before I make my final decision though on the Sony I will have him play me again the 720 Anthem and have him explain exactly why the Sony would be better. I think though that I would be looking at the 1120 as the 720 only has 7 amps and I would need to buy additional amps to cover 5.1.4 and my bedroom. 
I will definitely ask for 15% discount on equipment when I am done deciding on what I want to buy.
Yesterday I pretty much decided I want to add a Bluesound music streamer and I have to decide which model. 
I think I have explained that its as though I can make an offer and if does not accept then walk away. This business is the best by far in my area. My alternatives would be Magnolia, or to buy from a home theater installer. As I have said, he is not jacking up the prices on the equipment. They are list prices that are the same everywhere and I totally trust that they will do an excellent job with the install. I will ask for a package deal that would include a service agreement, I will ask for 15% off of the equipment but I won't be going elsewhere. The owner has been to my house, I have been to the store numerous times, asking questions taking up their time, and having them audition the equipment. 
It's hard to answer every comment so I have tried to be comprehensive in my comments.
I like the idea of asking 15% and having him counter. I will ask for service agreement. I won't walk away if I don't get the 15%. I do believe that this business is completely honest and ethical and they are not out to get my last dollar. I do trust their opinions on which brands to buy but I make my own decisions. For instance my dealer downsells me. He suggested a lower level Paradigm floor speaker and center speaker but I decide to go with the higher priced 75F and the 55C. He suggested the mid priced Sony and I wanted the more expensive 9 channel. If after hearing the Anthem again, if I feel that it is a better buy than Sony I will choose it

galleybob OP Said:

I get a lot of criticism for choosing Sony and I pretty much know that people just have an attitude without hearing it. I was pretty much shocked when I found out that this business was selling Sony. As I have said they are extremely high end and have always sold Anthem.
Or it could be the dealer has a higher profit margin in the Sony. It’s very possible.
By all means I would listen to both HT receivers again. Call the dealer and ask him if he has the Blu-Ray movie, first release, "John Wick". The sound track is recorded in, "English Dolby TrueHD Atmos Mix". If not you should buy a copy and take it with you.


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