2. misc-audio
  3. 190514-189728

Discount on Internet order

Ok so I've been told by an audio vendor that only foolish vendors who don't plan to be in business offer discounts. On the other hand a vendor from Eastern Canada regularly offers me 20% off retail. Lately I've been looking into a new component. It retails for $20,000 Cdn. I found it new in the box for $15,000 US. Then I found a US vendor offering it at a discounted price of $10,000. I asked for a firm quote. In a written quote they offered it for $8,500 including shipping and insurance. The interesting part is that they were shipping UPS and the quote showed Cdn taxes of 12% of $5,500. I asked if the full $8,500 was insured and the vendor said yes. The tax was based on $5,500 because he was insuring it so the value for insurance was his cost, not my price. So on a $15,000 US item this guy's cost is $5,500. Seems like huge margins are available.

dwcda
audioman58's avatar
audioman58
4,203 posts
 

Only cheap SOBs would say no discounts .I was a Audio dealer for a decade 

and Always give at least 15%  or better ,some mfg give 50% to dealers ,on average 40-50% ,that dealer is greedy ,go somewhere else !!

czarivey
5,946 posts
 

 

@audioman58

too many "leeches" want to suck a free buck without enduring anything and growing their sizes and sizes of their children. the word "outside of ebay" comes to mind with each and every pricey transaction. Let's cancel a deal and then let's work with cash on pickup bypassing both taxes AND draconic ebay fees. Every item that says make offer, you can mention price of cash on pickup offering an amount that would seller get after eBay fees and taxes + a-little bit especially I'd say on vehicles besides pricey electronics you'd try to look around within reasonably drivable radius for LOCAL pickups. 

kerrybh
180 posts
 

Doesn't the new law apply to income, not sales tax? Sales tax is levied by states at a rate set by individual states. The "new" law, at least as I understand it, is not a new tax, its a mechanism to better collect taxes on items sold at a profit which produces taxable income. Which has always been taxable, but easy to avoid.

@zigstien  I think you are correct-no profit, no tax.

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