Does anyone or does everyone pay retail price?

Standard mark-up in the industry is 40-50%. There's lots of overhead in 'bricks and mortor' stores and audiophiles are very cautious with there purchases. A lot of people have gone into the retail side because they love being a part of the high-end scene. Business failure rate is incredibly high. It's hard to believe that anyone would pay retail these days, unless it's for a lower price tweek of some kind. I suppose that some established dealers will survive the recession, but sadly most will find this to be the 'last straw'. Inventory 'fire sale' will probably then be made available on a site such as AudioGon.

Kirkus, thanks for addressing my questions!

And mark-up is only part of it. Collecting sales taxes are an extra burden on the local dealer, 6% in my state. The local dealer doesn't have a chance with many of us.

Add the 6% plus MSRP, I can usually get at least 15% plus the 6% sales tax from mail order/out of state dealer (not collecting out-of-state sales taxes), the local dealer has to give me 21% off to compete, not really fair to him. The added personal service, possible auditioning has to be worth the extra 6% to you.

I'm not making any judgement calls about state sales taxes and/or dealer markups, I'm simply bringing to light consumer considerations. Dealers seem to have it tough, state sales taxes, likely higher overhead costs, contracts stipulating no out-of-state sales all serve to make life tough for them.

I bought my system about six years ago. The front end (TT, arm, catridge and CDP) and the speakers were new from a dealer. The electronics (amp, preamp, phono amp) were used from Audiogon. The dealer set everything up and provided excellent service for which I paid MSRP. In the six years since, I have upgraded the electonics with items found here on Audiogon.

Paid retail only once @ a local BM store, anticipating and having an understanding (which wasn't mutual, it appears) that the dealer would provide an adequate after-sale service...you know, loaner when the damn thing broke, promptly getting accesories from the distributor for which I'd naturally pay etc. None of it had happened,the dealer took my money and laughed all the way to the bank... so no longer an audio virgin, I made a promise to myself that I'd never ever pay retail again and beat every BM store dealer to the last bloody penny, if I ever were to buy anything from them again. And expect nothing in return. I did keep my promise!