You are not logged in. [Log In]


Forums » General Discussion » The Water Cooler » Dealer Markup

Page 1 of 2 1 2 >
Topic Options
Rate This Topic
#290442 - 02/04/10 02:51 PM Dealer Markup
Adrian Offline
axiomite

Registered: 12/27/08
Posts: 6887
Loc: It's all about the location.
Last year, I auditioned numerous speakers before ordering and picking up my Axioms and purchasing a Paradigm sub locally. One pair of tower speakers(WWMT) I checked out was from a relatively new Canadian company based here in Ontario(I'll keep their name quiet). Anyhow, they weren't necessarily good/bad sounding, just nothing particularily special...lacked some clarity and detail imo, although they were finished extremely well and looked very attractive. Now, the dealer offered me a PAIR of these towers for $399.00(1 year ago), I was tempted but didn't bite because they didn't quite do it for me. The other day I saw the same speakers for sale at $1199.00!! This markup just seems awfully excessive to me...this is kind of what we were talking about on the other thread about walkin retailers vs Axioms business model. Not asking a question here persay, but is this kind of markup for real in the audio realm? comments...
_________________________
Half of communication is listening. You can't listen with your mouth.

Top
#290447 - 02/04/10 03:11 PM Re: Dealer Markup [Re: Adrian]
pmbuko Offline
shareholder in the making

Registered: 04/02/03
Posts: 16437
Loc: Ben Lomond, California
Why withhold the brand name from our curious brains?
_________________________
I can explain it to you but I can't understand it for you.

Top
#290450 - 02/04/10 03:25 PM Re: Dealer Markup [Re: pmbuko]
Adrian Offline
axiomite

Registered: 12/27/08
Posts: 6887
Loc: It's all about the location.
Well ok, it would be a company called Sinclair Audio, they're part of Erikson Audio or something like that.

Now stop twisting my arm, PETER!! OWWWW!!
_________________________
Half of communication is listening. You can't listen with your mouth.

Top
#290452 - 02/04/10 03:32 PM Re: Dealer Markup [Re: Adrian]
htnut
Unregistered


Wow, that's quite the markup if true. You sure they weren't offering $399 each? I can appreciate a business needing some kind of markup, but I'd be shocked it was THAT big.

Top
#290453 - 02/04/10 03:38 PM Re: Dealer Markup [Re: ]
Adrian Offline
axiomite

Registered: 12/27/08
Posts: 6887
Loc: It's all about the location.
Nope, it was a pair. Just to be clear, I'm talking about two different stores here. The $399 price was at a local store(I ended up buying my Samsung 52" from him) and the $1199 was at a competitors in Mississauga. If I recall, the first dealer was willing to budge a bit even on the $399!!
_________________________
Half of communication is listening. You can't listen with your mouth.

Top
#290456 - 02/04/10 04:01 PM Re: Dealer Markup [Re: Adrian]
htnut
Unregistered


Then my guess would be:

1. Super special introductory price just to get you to try them.
2. Old / discontinued model on clearance.
3. They sell and/or sound so bad that they're dumping them.

Top
#290458 - 02/04/10 04:08 PM Re: Dealer Markup [Re: ]
davew Offline
buff

Registered: 02/25/08
Posts: 44
Loc: San Jose, CA
Maybe it has to do with perceived value - kind of like buying a bottle of wine to give to the host when you're invited to somebody's house for dinner. You don't buy the $6.99 bottle of wine becaues that's too cheap. You get the $16.99 bottle of wine to hit the middle price-point and think that it must be better just because it cost more. It turns out that the cost of a bottle of wine has little to do with how good it is. With the higher markup, a buyer thinks he is getting more.

Come to think of it, speakers and wine are similar in, at least, a couple of ways. 1) Higher price doesn't always mean better sound/taste. 2) You should get what tastes/sounds best for you within your budget.

-Dave

Top
#290459 - 02/04/10 04:11 PM Re: Dealer Markup [Re: ]
fredk Offline
axiomite

Registered: 12/06/07
Posts: 7786
Loc: Canada
I would suspect #1.

Dealer markups always generate heated discussion. Most people seem to think dealers should give stuff away on foolishly slim margins. Retail has turned into a very tough business and dealers have a lot more than just the cost of the speakers to cover before they break even.

In the '70s 300% markups were not unusual in clothing. It used to be a lot easier to get a deal on stuff.
_________________________
Fred

-------
Blujays1: Spending Fred's money one bottle at a time, no two... Oh crap!

Top
#290467 - 02/04/10 04:46 PM Re: Dealer Markup [Re: fredk]
Adrian Offline
axiomite

Registered: 12/27/08
Posts: 6887
Loc: It's all about the location.
I kind of figured that they were giving the deal to introduce the speakers because I couldn't find much in the way of reviews about them from either consumers or professionals. One of these days I'll go back and give them another listen.

Speaking of markups, furniture is pretty steep(not talkin'bout Ikea).
_________________________
Half of communication is listening. You can't listen with your mouth.

Top
#290471 - 02/04/10 05:12 PM Re: Dealer Markup [Re: davew]
PhillipD Offline
veteran

Registered: 01/19/10
Posts: 142
Loc: Grande Prairie, Alberta
 Originally Posted By: davew
You don't buy the $6.99 bottle of wine becaues that's too cheap.
-Dave

That is alot for a bottle of wine.....????

Top
Page 1 of 2 1 2 >

Moderator:  alan, Amie, Andrew, axiomadmin, Brent, Debbie, Ian, Jc 
Forum Stats

15,252 Registered Members
15 Forums
24,037 Topics
424,532 Posts

Most users ever online:
883 @ 03/04/17 05:06 PM

Top Posters
Ken.C 18044
pmbuko 16437
SirQuack 13572
CV 11677
MarkSJohnson 11443
0 registered ()
179 Guests and
3 Spiders online.
Key: Admin, Global Mod, Mod
Newsletter Signup