I know very few people will believe this, but I have actual experience in both the auto and high end audio industries, and know how they both work. The audio store is mine and the dealership is my families. Its kind of funny how people seem to know what type of profit margins there are on everything.
If there's one single concept that holds true, not only for the 2 industries mentioned here, but for most others as well is: When you are in business, you never tell anyone what you pay for anything. The minute you do that, you loose. Any time a business owner tells you what their cost is, their almost certainly making it up. In a place like a car dealership where there are a lot of employees and departments, none of those people know anything about what the dealership actually pays for anything. And, yes, if you look at their computer screens, cost is listed. Its nothing more than a made up number or some type of code. Only the owners and the accounts know any of the real pricing.
As far as invoice goes, its a false bottom used to start the sale process with. Its a number on a piece of paper and nothing more. As others have correctly stated, things like rebates are given to the dealers that will lower the actual prices they pay for the car. When a car is sold at invoice, they are making a profit.
In audio, the markup varies. There are some overall pricing trends, but in the end, whatever dealer cost and markup is, is spelled out by the contract you have with the equipment manufacturer. Some companies allow you to discount, while others don't. There are other factors, as well, but they can vary from company to company. I can also tell you that most equipment manufactures won't hesitate to revoke your status as a dealer if you don't follow the terms you both agree to.
