What is the average dealer mark up?

Guys,
I appreciate the insight into what it takes to open and run a business. I also appreciate the insight on running a HiFi shop et.al. and it certainly doesn't sound like something I would ever be successful at.

My question was legit. I meant no harm in asking, but I did feel that it might create some discussion...good and bad. During these surreal times of a pandemic, some of the discussion has been regarding reduced prices etc. I personally have not seen it and some of the private sales here border on the ridiculous. My opinion is all in that regard. Small shops have to reduce staffing during these times, which may or may not provide some relief for the owner/manager which I would think might benefit the consumer if the savings are passed on. Apparently in this industry it doesn't happen very often unless you're someone with an inside track.
Again, I appreciate the response (with the exception of one post) and will hope to hear more.

I certainly appreciate the added value a relationship brings - remember many sales people are in commission and times are tough - reach out and buy em lunch !!!

That's 40% GROSS margins, not NET.
They also offer discounts to most customers so their real gross is probably more like 30% before expenses.

Then you add-in sometimes a distributor's "rake" on top of that and you see UK brands like LFD that sell amps for $7,500 in the US when they really should be $2,500 direct to consumer...;-)

And it's not a dealer "mark-up" but rather a manufacturer discount to a reseller..;-)...as manufacturer sets MSRP, not dealer.

Doh!! Sorry, I suffered mathematical dyslexia.

I meant to say dealer markup was 40% for big iron/speakers, but up to 90% for accessories including low end LP cartridges.

Best,

E

And then the dealers wonder why their sales are so low?  

You would think they would advertise to a highly selected mailing list.  The data they collect for mailing lists can be very narrow.  Andy then they only carry a few speakers and assume their customers cannot afford to pay more for the more expensive ones.  If I were a dealer I would rather sell speakers for $10,000 too $30,000 than speakers for $4,000.