Axiom Home Page Forums General Discussion The Water Cooler Dealer Markup

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...

Why withhold the brand name from our curious brains?

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!!

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.

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!!

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.

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

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.

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).

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