What is the average dealer mark up?

To the offended and bashers of this thread.

 Disclosure of this type of material is not such a bad thing. It helps customers appreciate that their local boutique dealer is most likely not getting rich off of your $3000.00 speaker purchase. It might make some not want to beat them up on price everytime they buy a piece of gear. 

How many demos have you done in store, at home?  Sought advice then bought elsewhere on line or even  used gear. It's all time and takes away from the stores bottom line. 

Now that the secret is out... Be kind to your local dealer.  

That could be the result of a thread like this. 

The dealer mark up is his building lease...his family needs.... his food... his clothing... his transportation.   You know. What you want to save your money for.

It's probably more for his business expenses, one of which (hopefully) is a salary for himself so that he can take care of those other expenses, which we all have (except the building lease).

All businesses need to make a profit to cover not just their lease, but payroll, insurance, utilities, advertising/marketing, supplies, and so many other things.

big_greg...

I do not know how you did it.  But you found a way to disagree with me by essentially agreeing with what I said.  I forgot one word to add to the list. Which was a given. 

@millercarbon Cars generally have 10 to 15% margin. This excludes Holdback which is as little as 2% or as much as 5% Most of a dealers profit comes from parts and service. 

I wasn't disagreeing, but now I am.  I elaborated on what you said as you vastly understated the expenses that go into running a business.