What is the average dealer mark up?


What is an "average" mark up on quality or high end audio gear? I realize that there are many manufacturers who force dealers to hold this tight and not disclose, but surely without naming specific manufacturers there are some here that do in fact know the mark up.

Let the fun begin!
128x128badger_erich
There used to be this country, now vanished beneath the seas, where countless small retail shops flourished and customers would come in and buy things like televisions and stereos at retail prices that they could afford because they had solid middle-class (or above) jobs with wages and salaries that went up every year along with that country’s economic productivity-- that they helped create. This let them use some of their savings to routinely make purchases like this throughout most of their lives.

Massive big-box retailers could not score deals with manufacturers or sell products below cost to crush their competition (and then jack those prices right back up after most of their small shop competitors were wiped out). The small customer-centric shops had protections that came from "fair trade laws", and domestic manufacturers were protected by laws that did not allow foreign countries to dump products onto our shores that were made by slaves, by children, or by otherwise exploited workers-- all as a means of unfairly competing with our own manufacturers. So they had to sell on value and quality through stores that had to focus more on customer service and locality to remain in business and thrive.

The employees at these countless shops were not paid a fortune, but they were decently-compensated. They had steady jobs and benefits that allowed them to live respectable lives while working in those stereo shops-- many of them located right there in your town. Remember? No? Some of those employees lived right down the road from you, right next to the English teacher, or the auto dealership service manager, or the grocery store clerk. Remember? No?

This long dead country also had higher annual GDP, their children did a little better than them when they grew up because they went to well-funded schools that were paid for by the taxes that everyone paid according to their means, and in most cases, if they had kids, and almost all of those households did, it only took the salary of one parent to accomplish all of this. Hell, they even had dinner together every night. Remember?

That country’s political and business leaders decided somewhere along the line that it didn’t want that life for its own people anymore, and the kids that are growing up in this new country can’t afford to desire or buy things like stereos, new cars, appliances, houses, or to even send their own kids one day to college-- the way that their parents helped them do. It’s just no longer possible for most of them-- so their kids go into debt and make decades worth of payments to just hang on-- dreaming of a new set of ear buds so that they can stream crap-sounding digitized dreck into their heads everyday, partly to shut out a world that shut them out long ago.

It does not have to be this way. Every crisis brings with it new opportunities to change this world. The question is, just what kind of country do you want to live in? A winner take all society, run by global monopolies, that mostly sell cheap disposable crap out of warehouse sized stores to going nowhere stressed-out families, or would you maybe like a country where that little hi-fi shop down the road can exist again and prosper along with you and your family?

We actually have that choice- whether we know it or not, we have it.

And yes, this is absolutely on topic.

Some of those employees lived right down the road from you, right next to the English teacher...
@wesheadley Well said. Does anyone else remember when the English teacher could live the "middle class" lifestyle?

In the end, I think that what matters is that it's a free world, at least in America, and you can't tell business owners what they are suppose to charge or how much profit they're supposed to make. Nor should you want to. Too much price control would just water down the creativity and expertise that goes into the advanced audio gear we enjoy today. I don't expect that audio dealers are making a killing because most are in high end neighborhoods that have high rent and have to keep the place looking nice along with retaining and paying reliable and knowledgeable staff. If they are making big profits, more power to them and foo on me for not doing the same.  Having been in business myself I know it's not a gimme to run a successful business.  I want to shop audio where the staff is knowledgeable, can demo the gear in a way that I can relate to, and is there when I need help.  You'll never be able to control prices or profits.  You yourself may open a business some day and then you'll see why things cost what they do.
garrettc
... at least in America, and you can't tell business owners what they are suppose to charge ...
Actually, in the US, a manufacturer can indeed tell a business what it can charge for its products, and some do.
Who said anything about price control or limiting profits? Cheating is not "savvy business", it’s just cheating. And in the long run, it’s toxic to almost any capitalist economy. The comments were about a rigged system that has been anything BUT good for small business. I pity any small business owner that just benignly accepts monopoly power as a given or as a positive force for business and innovation-- it has been anything but. More importantly it has led to the USA becoming a downwardly economically mobile society-- and those, like it are not, are the facts. Regulations are critical to all human endeavors from sporting events to businesses. Sad that so many people no longer "get" that. Mass deregulation has led to a hyper-consolidation of industry and capital-- and the data is in after more than forty years worth of it-- it is toxic to small business, to innovation, and most importantly, to the lives and fortunes of MOST people. France has a higher launch and success rate for small businesses than the US-- and that is truly pathetic. While in America more than forty percent of our household can no longer come up with $400 to pay an unexpected bill-- so it's a small wonder small businesses have done so poorly for so long.