Why can you buy a car at dealer Invoice but audio

In new car sales they will usually wiggle a lot. Used cars are where the money in cars is. Prices they buy cars at auction are ridiculously low. Even if they discount used for you they make a ton.

Dealer I worked for told me 60% of their profit came from service alone, parts, used then new, contributed to profit, in that order.

And as others have said, do not forget finance, accessories, warranties and the all important "undercoat!" Great comment Isochronism!

Audio, haven't got a clue.

Best,
Dave

It's amazing the dealers only make 40%. That means the manufacturers are making most of the money. As an example a piece that retails for 1000.00 cost the dealer 600. It probably cost the manufacturer 200.00. That's a 300% markup. It looks like if you want to be in the high end audio business today manufacturing is the way to go.

Taters, you need to take a basic business class.

+1 Drubin, that's pretty standard across any industry. A $1000 item cost about $200 to manufacture, $100 goes to R&D, $200 goes to marketing and advertising, $100 goes into retained earnings or gasp profit. After all, there has to some incentive to run a business, doesn't there? The 40% breaks out pretty much like Jea48 describes.

Taters, go to a local Community College and take Business 101.

Taters, I get 30%-50% off list from various internet dealers. Sorry, I don't kiss and tell. Yea, so I have to deal with the manufacturer direct with any warranty issues, I'm a big boy, I can handle that. I don't need to pay a middle man to handle those chores for me. If I did need the middle man, I wouldn't whine about having to pay for his services. Pay the man!

Depending on how picky you are on the brands. And not needing the latest and the greatest new thing. And having great patience at times. Great value may be found on gear from internet retailers like Audio Advisor and Audio Classics. Along with brick and mortar stores.

This happens when they have close out on "old" models, gear from makers that may be going out or have gone out of business. Or the rare overstock.

The stars must align. Seek and ye shall find.

Jmcgrogan2,

How can you get 50% off when the dealers only get 40% off. This doesn't make any sense.