Why can you buy a car at dealer Invoice but audio

LOL! The wild card.....cables and power cords. That 40% is an average, not a standard, depending on manufacturer.

In the beginning there were many small Mom and Pop hi-fi shops around the country. Usually staffed with a mature, knowledgeable and passionate people but alas the prices were sky high. Next came the specialty retailers such as the Circuit City/Good Guy's types where prices were more discounted but the staff was younger, and less experienced (read lower wages). Lastly, you have the big box chain that discounts heavily. Do not have much staff to help you and is currently in a makeover to be profitable again because they can not sell enough service plans or overpriced cables to make up for selling the TV at cost.

There are some variables in profit margins for stereo equipment. It's not always 40%, sometimes it is more depending on the product and the arrangement between the manufacturer and dealer. Cables and other accessaries are almost always 50%. Mark up on cartridges are off the charts. I expect a discount when buying new unless I perceive the retail price to be a bargain.

Do you really believe cars are being sold at dealer cost? When buying a car you can't trust the salesman for little things, so why would you believe they are selling you a new car for what they paid for it? I see dealer invoice as just another fictitious figure.

It works the same way on car parts from the dealer. They are charging you double. My mechanic charges me half of what the dealer charges for OEM parts and everybody is still making money.

Some make money in quantity and others want to make it all at once. You can sell thousands of $89 DVD players, two $40,000 amplifiers or one set of $150,000 speakers.