Is it even possible to get a factory authorized dealer to give a discount?


Over the years I run into the same thing over and over. I go to a dealer of my favorite gear and he has a piece that's been on his floor for months. I ask of it can be sold at a discount and he states "My contract with the manufacturer prohibits me from discounting or else I loose my distributorship" . OK, fair enough but the the same gear with about the same hours on it appears on US Audiomart from a private seller and it's 40% off retail. What gives?  I know a dealer has to make an honest markup for the cash he invested in inventory, overhead  and his expertise but why can't the dealer "make a deal" and give a nice little discount to the loyal customer?  

I asked my local dealer audioexcellence.us and he basically said this: "If there were free and fair discounting between dealers there would soon be no dealers as dealers with excess inventory would discount until almost all dealers were gone then the remaining dealers would 200%+ mark up new gear and the entire ecosystem would be wrecked. Consumers would enjoy a windfall discounts for a short time and soon thereafter there would be lost dealers, lost manufacturers and then price inflation like crazy plus crap innovation.  

That made sense to me but can't a guy get a deal?   What are your thoughts?  Is your dealer worth his markup? 

My conclusion was to support the guy who brings gear to my house and sets it up. I like him, he's not getting rich (or else he wouldn't be there sweating the install) and I'm better off having music (a system) that makes my spirits soar. Yes it's really expensive but I think I'm getting a non-diminishing return in joy and happiness. 

What do you think? 

128x128Ag insider logo xs@2xyesiam_a_pirate

@cleeds  Well, that's a fu#ked-up policy.  Move north where we are free 😆

To @erik_squires point, I owned a retail business for many years and offered in-store credit in lieu of cash discount.  On a $40,000 item I would offer a $4000 in-store credit.  The customer would see a $4000 value but in reality, the credit would be used to buy items where I had a 50% margin, thereby only costing me $2000.

The in-store credit is a win/win situation.  Big value to the customer, lower cost to the retailer.  A solid approach when looking for discounts.   

And you guys thought I was all talk with no useful experience to share.... 🤣

If you establish a relationship with a good dealer and give them repeat business you will get some discounts. You will also likely get better sound overall.

OP congratulations on the ARC gear, my REF 5se with about 6k hours on it was unpacked at the selling dealer, a slight defect noticed, new part ordered for drop ship to me , dealer ( Robert Taylor of Taylor House in NC ) ran it in for two weeks, delivered it and picked up my trade in at 2X bluebook…….

@glennewdick 

+1

@yesiam_a_pirate 

Dealer margins run from 20%-50%. Any dealer telling you this is false is full of Sh##. I have received 15-30% discounts on products that manufacturers do not allow to discount. Go into a store, write a check for 20% off retail, and give it to the dealer. If they refuse, go elsewhere, they won't be in business for too long. Money in hand is worth far more than money promised!