Margin on speaker sales by high end dealer


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?
emergingsoul
My answer is "I don't know"

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.
@ 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.


Curious why the animosity towards someone who is attempting to even the playing field. I assume those of you throwing stones also refuse to use internet tools to find the dealer pricing on that new auto you are considering? Why are audio dealers a protected class? If a dealer is providing excellent service, most buyers should be able to assign a value proposition to the transaction. Why all the fear? I am truly curious.
I assume those of you throwing stones also refuse to use internet tools to find the dealer pricing on that new auto you are considering? Why are audio dealers a protected class?
Why would you assume that? It’s just a flat-out wrong assumption. There’s no fear, and audio dealers are not a “protected class.”  The OP was implying audio dealers make a lot of money most of the time for doing next to nothing, which is oversimplified and just not true — witness the ever-shrinking number of brick-and-mortar audio stores. And yes you could say the same thing about auto dealers and it would still be wrong for much the same reason. But that said, if anything auto dealers are the more protected class because almost all cars have to be bought from a dealership where they all have the same overhead costs to bear whereas audio components can frequently be purchased online from a site with next to no overhead. Apples and oranges in that regard.