Why can you buy a car at dealer Invoice but audio

Rhljazz,

You can buy Mercedes C class and E class all day long at Invoice. Ferrari you have to pay sticker and Lamborghini you can get a small discount. You can also wheel and deal on Porsche.

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.

Zd542's post is excellent. Now, use your imagination to its fullest and guess what jewelry dealers pay.

I remember before the economy went bust the cars dealers were selling cars like the Prius for $5000.00 over sticker so the are no real deals. If anyone can get more money they will.

Minori, your comments about the auto and audio industry are only partially true. Sadly there are a lot of car dealers whose practices are borderline scam and fraud. But just like not all brick and mortar audio stores are jerks, so it is with the car business. There are decent dealers...you just have to look for them. Same with good audio stores. Same here on Audiogon and on Ebay. Frankly I would rather pay more for a product from some company that is customer oriented. There isn't enough of a saving from a bad sales experience to justify doing business with them.