Many a times, you talk with a dealer and they order and deliver the product. So you spend 10k on a pair of speakers. Seems very simple to do by a high end dealer. And most often done without an Instore visit. So how much are they making?
Back when I was selling audio, speakers were a rather high profit item and offset the low profit on electronics. The two biggest profit generators were phono cartridges and, by a mile, fancy cables.
I'd expect the mark-up to be 30-50% - this is typical for consumer goods/electronics.
The range will differ at price points, according the distributor agreement and the like.
Many manufacturers provide specific requirements such as demo units, stocking levels and on top of that then include promotions based on annual volumes and such.
A dealer that doesn't abide by their distribution agreement can get dropped and companies with strong brand names will penalize poor actors.
Manufacturer's also have 'upgrade' programs to provide additional revenue opportunities for dealers. This provides dealers incentive to promote their products.
The reality is that the vast majority of audio dealers are not getting rich. The only way to make real money in this business is to scale up large and push a ton of volume through every month. Music Direct and Upscale Audio do this and probably make very hefty profits below the line. The rest are hustling for every sale and I therefore prefer to work with the little guy whenever possible.
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p05129 - going to shows, that's probably the very best way to truly get an overall view of the marketplace, and experience it for one's self. When I am able, that's surely a goal of mine, thanks.
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