Retail vs. List Price

I know for a fact that REL uses a 30 point system. In other words the dealer pays 70% of the retail price. About six months ago there was a special discount from Sumiko that didn't require the dealer to pass it on to the consumer. I don't know how much that discount was for but based on my purchase price I would say it was about another 5-10 points. I got my info from the head salesman at Tweeter after getting into a fight with them and Sumiko (long story). I wound up buying my REL from Audiogon and received a lot more of the discount too.

I have owned my own audio/video business and am still good friends with a high end dealer

 most electronics lines dealer pays 55% to %65 (of course their are exceptions but this is the meat of it all) of retail (list) plus shipping...most companies will sweeten the pot for earlier pay and pay shipping on orders over a certain amount.

 Speakers are usually a couple of points better for the dealer and almost all cable is at least 50% off with special deals on top of that.

 Most companies offer special deals on “demo” equipment to encourage the dealer to show product in the store. Cable usually gives the best discounts (75% off is common). On electronics, sometimes the “demo” stock is B grade stuff with a cosmetic flaw.

However there are lines, like Rel talked about above, whose margins are razor thin so it is tough to get much of a discount. Even used, Rel keeps its value because the manufacturer is very protective. (Plus their gear is really well thought of)

Most of a dealers willingness to discount has to do with how strict the manufacture is. Some make the dealer sign restrictive contracts that threaten pulling the line for the slightest transgression. Some of these companies mean what they say and others are more talk than anything and will take a sale any way the dealer can get it. The best known lines are pretty protective. You can see this because very little of it is found for sale "new" on Audiogon. The more restrictive the less likely you will find them on audiogon; because one of the big movements for restriction is web selling. You can see how this could mess up the dealer network that these people have worked so hard to build and protect.

Do an experiment; put in Levinson, Revel, Wilson, Rel, and Triangle and you tell me who are the picky ones. If you are a dealer for Levinson and screw with the manufacturer they will hear about it and drop you faster than a hot spud. They don't need the dealer, they have people waiting in line for their "franchise" and they aren't going to let someone muck it up. And in this case the dealer would lose all of the Madrigal stuff to boot (because you never just cherry pick the line, it is all or nothing).

If you are looking at Revel and a local dealer is offering 15% NEW, you should be thankful. We have a dealer here in town (not my buddy) who carries Levinson, Wilson, Revel, Proceed, Rotel, Rel, Sonus Faber and B&W. Beautiful store but forget the whole discount thing. They have a big “clearance” sale once a year and then you can count on 10% to 15% on demo items. By the way, demo means “real used” not “nearly new” like some would lead you to believe. But that is a different discussion.

Someone mentioned earlier that your dealer can be a great friend and partner in your hobby and if they are good with customer service, one of the hallmarks of this hobby, then fighting for a couple more % off doesn’t make sense. Have them deliver them to your door and enjoy the whole buying brand new experience…and enjoy a great speaker line.

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Electronics typically 25/35 off list to dealers
Speakers 50% off.Why do you think they allways tell you they are the most important piece in the chain.Vested interest.
10% of new gear is pretty fair.Otherwise your dealers wont be in bizz.
At 20 % off list there is to little left to cover expenses.
Demo gear should be minimum 20% or walk.

I paid three thousand, for a brand new four thousand rel stentor 2, at two different stores so I think the mark up is a little more then stated above.

That said I think the extensive mark up is necessary for them to stay in business. Running a business is very expensive and the costs of the product is far from the only costs. Employees, rent, utilities, evn things like workmens comp insurance and liabilty insurance all gets very expensive.

Perfectimage, if you paid 75% of the cost the dealer still got to keep 5% which is $200. The dealers may also have bought the subs during the Sumiko discount (I know my Tweeter bought more than half their stock then) which based on my estimates is another $200 to $400. Assuming what I think is best case scenario the dealer made $600. Doesn't sound like they lost out at all then. This is of course all conjecture. leo.