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
I agree with your comments on Tekton.  But did you ever feel guilty paying your friend just 5% above cost?  Must have been a really good friend.
I think we need a moratorium on this tired joke :-)

There’s an old joke in high end audio that asks how do you make a million dollars in high end audio, you start with 2 million dollars.

I will echo a previous poster, it’s important to get the terminology correct. Audio dealers have:

100%+ mark-up (% of the cost of goods they inflate to form their selling price)
which equates to 50%+ gross margin (% of revenue left after cost of goods)

Those are typical numbers on hardware, accessories and "tweaks" you are in the territory of 300% to 500% markup easily. To the dealer that isn’t doing well despite 75% gross margin, you are grossly mismanaging your costs and your business.

My challenge with B&M dealers is that they are not offering the value they are supposed to. Most of the dealers I’ve visited are not knowledgable, at times I knew more about their product and their competition than they did. They would praise every piece in the store without an honest assessment of their weaknesses or my needs. It feels like they are steering me to whatever brand/piece they want to sell at the moment. In fact I had two different dealers wire speakers out of phase just so they could boast about how big the "soundstage" was.