Dealer Discount

I live in the rare town that has a half dozen high end audio shops. Which means people like audio to support so many dealers in our mid-sized city. There’s variety in discounts and willingness among the dealers. One store really turned me off though. I had found the speakers I wanted—brand new—at 40% off on line. I called the local place that stocked them and spoke with the manager. I said, “I dont know if you can match this, or if its worth it for you, but I believe in supporting local and at least wanted to give you the opportunity “ He lectured and harangued me and was really unpleasant. In the end I paid MORE than the reputable place on line but still around 35% under because I DO want my local places to be there. BUT, he was so unpleasant about it that I have never purchased anything else from them, though I have tried to give them a chance. Let me add they had done service work for me and I had purchased other speakers from them. I now have a favorite shop. If a discount is available, they work with me. Some items there isn't and they explain it. But their service is extremely good, they are knowledgeable and a bunch of good guys. 

I bought several pieces from a dealer decades ago that had a very rational discount policy. If you paid full price you got a 30 day return privilege and full credit if you traded up to more expensive piece of gear. There was a second level of 10% if I remember correctly, and then there was a 20% discount if you essentially wanted no service, no refund, no trade-in, no dealer setup, and you had to pay with cash (no credit card).

The point here is that if getting a discount is really important to you then you can negotiate a service/discount trade off with the dealer if the dealer has a standard service policy (return privilege etc.). If you just want to buy the piece of gear, walk out the door, and never ask the dealer for any kind of service then you should at least get a 10% discount. If you come in with cash or the dealer will accept the check you should be able to get another 2% by avoiding a credit card.

If you're concerned how much you have to open your wallet-most of us, it's all about how YOU interact with a dealer. Your own skills at selling yourself as a person who deserves the better price.

That said, I've had some exposure to what actual cost of audio equipment is, and it's painful to imagine paying anything near MSRP. A dealer has a business to operate, so I get it.

Cash, as mentioned, helps in the negotiation  game.
 

To use the example of the OP (“mid level audio equipment”) most/many electronics lines will have a 40% margin to the dealer. A well run/efficient dealer will probably have a COB (cost of doing business) of at least 25%. So, when you walk in and ask for a 10% off the dealer is left with +/-5% profit…

 

As pointed out prior, a relationship with the dealer is important. If you walk in and state that you know exactly what you want and the dealer/salesperson doesn’t have to burn any time with you then 10% might be realistic. A turntable/cartridge properly set up by the dealer probably would not qualify. If you require a protracted demo(s), hand holding, couch time (analysis), then maybe asking for 10% is too much…

Having other hobbies where the manufacturer is placing limits on what a dealer can or cannot sell for...I get it. I also understand the part of smaller shops not being able to flex their margin much as a cost of doing business. But, being new in the hobby I cannot help but feel that higher quality, higher priced equipment is going to be the MSRP regardless...just because it can.

Magnolia at Best Buy has plenty of high end product and being part of the Best Buy "machine" the margins could be spread out over the country. I wouldn't think that for them to knock off a 20% savings every now and then is going to hurt them, but they will not offer up better pricing for McIntosh or B&W unless it is open box, return or product being phased out with a new model.
I'm in the process of saving for my "retirement gift" and this forum as well as this topic is invaluable.