Dealer Discount


Hi all. Just curious - how much is a "reasonable" discount to expect from a local dealer on new, low mid-level audio equipment (say amp in $2500 range or turntable around $1500)? I'm a bit surprised that most, in my area, offer no more than 10% with some refusing to discount at all.

Look forward to your thoughts. Thanks!
gnoworyta
This basically depends on the dealer and to brand he is discounting for. Some brands have better margin for a dealer and some not that good.
For high end equipment 10% is low in my opinion
@glupson Thank you for your reply. If you walked in, and many did in those days as I was the only Audio Research/Magnepan/Nakamichi/Sequerra/Linn/B&O dealer around back then (Mc was handled by Jimmy Ryder of Ryder Truck fame if you remember them) down in Miami at HiFi Buys (no longer there).

If the item you wanted was NOT a fair trade item--remember those rules from my first post about this--I would have spoken to you about the rest of your system first. Remember, I was dumb/naive enough to believe that customers actually WANTED advice and counsel about their total system, and we would have discussed WHY you wanted that item. Once we had established some sort of dialogue, I might have sold you the item for a good price if I could. I did it sometimes, of course, but usually on a Marantz or Scott or Tandberg item--what we called semi-high-end back then, and they were.

If it happened to be an Audio Research item, probably not as they were in very short supply back then and the margins were not great. A popular pre-amp back then--SP3 and SP3-A1 were 595 then 695 then 795 all in the space of less than a year. What I MIGHT have done had you purchased the pre-amp and maybe another item is throw in the wood case, which was not cheap either. We paid about 70% for that brand once shipping was included.

Most manufacturers had a NET 10/15/30 price break on shipping, but some did not. Example: my highly-anticipated first D-150 (STILL one of the best amps ever made and I would buy one today if I needed it) came in DOA. It happens. Cost me 130 to send it back and they would not pay. How does a dealer combat that? You lose money.

Plus, back then, Audio Research wanted copies of the sales tickets and sometimes called the buyer--Mr. Johnson himself did sometimes, I was told--and the price paid was discussed. SO, some brands, yes, and some brands, probably not and definitely NO if it was a fair trade item like AR and B&O and SONY and so many others.

We gave GREAT service for no cost--delivered, set-up, made sure you were happy, answered my personal phone at 2AM because you had people over and your system did not play (push TAPE MONITOR, you dummy) but of course did not put it that way. My customers sometimes spent close to 6 figures even back then as we sold handbuilt hardwood cabinets (I had a wood shop across town) to go with your system. Today, if you have a Sound &Sight/Sound+Wood cabinet, you have a Bentley as we only made a few of them--fewer than 150, I think--and it was designed, created, and installed by us for you and was one-of-a-kind from walnut, teak (UGH--hard on equipment!), red or white oak, Honduras mahogany--not available any more--or, if you were really into it, rosewood.

We also contracted with Mark Levinson to make his HQD system stuff. He was a VERY slow-pay, as we say.

https://www.google.com/search?q=hqd+system&rlz=1C1ZCEB_enUS845US845&tbm=isch&source=iu&ictx=1&fir=mDeE57BQgiUvpM%253A%252C4idAb6AkN4A07M%252C_&vet=1&usg=AI4_-kTZUYQn-tcvKDkpYHfPaYqtLa891w&sa=X&ved=2ahUKEwjY29L78qDlAhUEc60KHSqLDCMQ9QEwB3oECAMQGA#imgrc=mDeE57BQgiUvpM:

So, yes,a discount was possible, and one thing gone was good, but I was after forming relationships with customers, many of whom back then were audio hobbyists who were classical music lovers. Even Mr. Johnson did not like that we played rock on his stuff...wanted us to demo classical ONLY. Much different times.

BTW, I sold MANY pair of Magneplanars with Audio Research gear (they had a marketing relationship back then...Wendell was at Audio Research in those days)...to customers who loved "Money" and "Midnight at the Oasis" and ANY Linda Ronstadt played on that system using various sources from TT with expensive arms and cartridges--SUPEX and SATIN and DECCA and so forth were big then, and low-output versions were just coming online for the masses--to Nakamichi decks (all broke within a couple of weeks but they sounded pretty good!) to even the Sequerra tuners.

It was a great time to be in this business--before a lot of the silliness entered--and had I been less naive I might have stayed. Turns out dear old dad was right, as he often was. Funny how that works out, huh?

Cheers,

Richard
richopp,

Thanks. It is interesting to see how things work on the other side. I am just not sure why a manufacturer thought it was fine to call people home (I assume it was before cell phones) and ask how much they paid for what. Or someone calling you at night to ask what is going on with their equipment. Different times, I guess.

I was prompted to ask what you would do if someone walked in, the way I would,  by benjie's statement a few posts above. He thought the salesperson would not take me seriously and would say anything to get rid of me. I think I also became a jerk somewhere in that statement because I would ask straight forward and not negotiate afterwards. Maybe the most important aspect for me is skipping any further discussion and surprise about price. MSRP is fine with me, but further push-pull games are not. Which is what this thread really started about. In reality, I never thought of asking for discount on electronics or expected it existed.

Of course, a good advice is always welcome but these days that is lacking wherever you go. Some of the experiences in audio stores are baffling although it is not limited to audio stores.
@glupsonI hear you.  I was in a shop yesterday that used to be next to my shop in the '70's.  They sell lighting--lamps and shades and stuff like that.  Some is very expensive, some regular.  The owner is still the same person--out of town right now--but the lady there and I had a great talk about the old days.  She said some of the other shop owners from that small center still drop by every now and then.

THEN, she told me she had to call the cops 3 TIMES last week due to a-hole customers who broke merchandise, cursed, yelled, went nuts in their store.

I reminded her that yes, they moved to the next town (Delray Beach) north of Boca, but many of their customers were BOCA people. I laugh at them now since I am not in business, but the reality is that SOME of them are so amazingly nuts that they believe they are entitled to anything they want anytime they want at any price they want. 

Imagine owning a LIGHTING store--not really very controversial, right??--and having crazy people for customers that make you have them arrested for shopping!!

My take is that their belief is that God put them on this planet to get ALL THE MONEY and then make everyone else bow down to them.  I don't know--but I do know I am moving an hour north as soon as my house sells.This town went from a small, quiet resort/vacation town to something I don't recognize, and I lived on the island of Palm Beach for a number of years, where people really ARE wealthy.  Most there do NOT behave like Boca people...I have no idea why.

Keep working with your dealer and I am sure you will get the better prices as time goes on.  If your dealer is a high-end one, he or she probably has your best interests at heart and will do whatever is possible to keep your business and have to talk t others about it.  We NEVER advertised--did not have to due to word-of-mouth.  Funny how that works!

Cheers,

Richard
An example of discounts for less service is Cary Audio.  Go to their web site and check out how much the price of a 5K piece goes down if you accept lower warranty and replacement options.
I know they are not retailers but just an example of how businesses work.