Most overpriced audio component made

Folks, let me tell you the story on margins in audion gear. I used to work in the industry and have many friends who still do. Assuming we are talking about decent mid-fi to high end equipment, if it is sold at MSRP, the gross profit is typically about 40% (sometimes a little higher sometimes a little lower) for speakers and components and 50-60% for cables and other "accessories". The gross margins on video equipment are usually lower, about 30-35%. Having said that, after overhead, taxes etc., most dealers are making net profits of between 6-11%.

A dealer pays 50% of MSRP for the loudspeakers I sold. And they were VERY familiar high end brands.

Good point Treyhoss. but unfortunately he only carries a limited supply. He is one of these new breed dealers that are going to custom instalation.You have to order what you want. i called some stores in palm beach as well and same thing no demo of this no demo of that. i said how am i suppose to know if i like it. he said the people we deal with already know what they want.I'll tell ya, getting back into this after 20 yrs. what happened to walking into a place and just having rows of stuff to listen too? I am disabled and i can't drive too far. so almost all the equiptment i buy is without demoing it. I know thats not the way to do it, and i'm on this computer for hrs. investigating reviews and articles. this is the only choice i have.this dealer where i live is limited to a few brands or lines of gear. and the other dealers won't do anything. they just want you to pay FULL PRICE and not even have to work for their commission.Heck when i was a salesman. i drove 3hrs. to make 1500.00. not these people. you come to us. thank you for the internet.

Brain@genisis you are not overly bright.The mfg are making 80/90 % mark up on cable.Take some of the 50.00 a foot wire apart and you will find its a .75 Cent a foot beldan wire.why do they then charge 50.00 a foot.I can buy a beldan cable thats 99.99 OFC with teflon dialectric and S.S steel briad and a shield for 1.50 a foot.It is better than cables that retail 400/500 for a 1M lenght.So if you dont know dont talk.When you do its reflects on how little you really know.Bottom line is a retail business nedds gross profists in the 30/35% to survive.MFG as everyone knows make the biggest chunk of the profit so if you had the aboility to do some math you would see that the figure of 70/80% is not out of line.

Tml2: you have no clue, just guesses. Bulk of the cost in most wire is in the termination. Advertising is a fortune, and if there are no ads, no one will buy (on a large scale). Also, the greater the dollar amount, often the better it is perceived to be. Great low price products often do NOT sell (they can;t be good, they don;t cost enough, many think). I have taken apart many cables, and know what's inside, about what it costs, and the labor involved. 80-90% profit by the better companies? If you had the "ability"not to ASSume, and make blanket statements, you would not be an ASS, but you are. Oh, and your comments on the mfr's making the most is no news flash to anyone, so save it.