Negotiating suggestions with a speaker dealer?

[aggmiami]

I have been auditioning various speaker lines and although I haven't settled on one in particular as of yet, I would like to understand the correct approach when it comes to NOT paying MSRP. I've got a general idea of dealer markups, but I also do not want to insult the dealer by asking for x% discount on a product. Is their a general % discount approach that can be taken so it is fair to both parties? Is their a greater potential savings in speakers than say amplifiers, receivers or sources?

If this is an inappropriate topic for the forum, then maybe members could simply PM me with any thoughts and suggestions. I just don't want to blindly jump into this.

Thanks

 

[ematthews]

Ask for 20 off. he still makes a good margin. Both have a good deal.

 

[GranteedEV]

Just buy internet direct and cut the dealer out of the picture.

 

[slipperybidness]

Also, asking for any open-box, customer returns, or B-stock can be well worth it.

 

[lsiberian]

And if they say they have no open-box items. Suggest they open a box.

 

[j_garcia]

20% is a good rule of thumb for me too. Then even if they give you 10%, you're still doing OK.

 

[aggmiami]

Thank you for the responses!

 

[slipperybidness]

Thank you for the responses!

Assuming that you CAN do cash (and you should not be purchasing speakers on Credit!), never under-estimate the power of cash!

Even shops that "don't discount" will often discount for a cash price.

 

[j_garcia]

The more you're considering buying from them as well, the better chance you've got at getting them to throw something in or discount. I usually try to go with a place that has enough gear that I want to bundle for this reason, but there aren't really any "one stop shops" around much anymore.

 

[AcuDefTechGuy]

For B&M brands, I say 20% off MSRP (B&W) is a good rule of thumb. Personally I aim for 30% off on other brands. Store demo & B-stock should be 40% off or more.

For Internet Direct, aim for 0% off MSRP for new and 5% off for demo.

 

[aggmiami]

All great points, thanks.

 

[walter duque]

Just buy internet direct and cut the dealer out of the picture.

I am not sure about some of these ID companies, seems to me they are charging retail and some ID companies are way to overpriced. That's just how I see it. I also depends on how much the speakers retail for. The higher the price the more discount you can get. I would start with 40% off retail and take it from there.

 

[Swerd]

Watch out for dealers who give what looks like a good discount on speakers, and then at the last minute, tries to sell you overpriced speaker cables. His profit on the cables will easily pay for the discounted speakers.

The same goes for extended warranties on speakers. Avoid them.

 

[j_garcia]

If ID companies went through dealers, their prices would be a higher due to the middle man markup.

 

[GranteedEV]

I am not sure about some of these ID companies, seems to me they are charging retail and some ID companies are way to overpriced. That's just how I see it.

Well, I see it differently. I bought my EMP E41-Bs for $300/pr. Their brick and mortar sister company RBH made almost the exact same speaker, the 41-SE and that retails for 1000/pr. Even with 20%-30% discount, that's less than EMP's regular list price i believe of 500/pr. The E41-B even came shipped in an RBH box.

Likewise, The RBH R55Ti are essentially the same speaker as the EMPTek E55Ti. The latter are listed for $700/pr and are often discounted from even that price. EMP states their MSRP to be $1000/pr which I would expect to be the dealer listed price for the R55Ti, but I wouldn't be surprised if it's more like $1500/pr.

So at minimum you'd need to get 30% discount just to get the regular EMP price. On black Friday people have scored E55Tis for under $500/pr. Find me an RBH dealer that's going to give you 50% off MSRP just as a sale gesture, without haggle, on anything but crappy Polks and the like.

 

[crossedover]

Cost plus 10% x 2 gives most dealers at 50% margin. So a $1000 dollar speaker might cost them $480, reasonable to assume that 750/800 is a reasonable offer. Don't expect that on lost leaders or mass merchant items.

 

[aggmiami]

I'll share some insights that were inferred in my discussions with one particular dealer that could alter some "general" negotiating principles.
1) Overseas brands may provide tighter margins for a dealer versus local brands...import fees/taxes?
2) Certain manufacturers provide easily accessible dealer approvals, while other manufacturers run a tighter ship as to whom are allowed to carry their brands. This could also play a role as to how flexible a privileged dealer may be on discounting.

 

[j_garcia]

I'll share some insights that were inferred in my discussions with one particular dealer that could alter some "general" negotiating principles.
1) Overseas brands may provide tighter margins for a dealer versus local brands...import fees/taxes?
2) Certain manufacturers provide easily accessible dealer approvals, while other manufacturers run a tighter ship as to whom are allowed to carry their brands. This could also play a role as to how flexible a privileged dealer may be on discounting.

While this is true, their margins are likely still very high on the average product this sort of shop carries. Rarely will they compromise a decent size sale over losing a little profit (we're not talking a loss here), because that could cause them to lose future sales to the same client.

 

[walter duque]

If ID companies went through dealers, their prices would be a higher due to the middle man markup.

IMO the ID companies are way over charging. They make their money and take the middle mans too. To me that's paying top retail, don't see no bargain there.

 

[j_garcia]

IMO the ID companies are way over charging. They make their money and take the middle mans too. To me that's paying top retail, don't see no bargain there.

So they should sell everything at cost and eat the labor and carrying inventory? No profit translates into a labor of love; aka not a business. Business is about making at least some profit to keep the business running and you can't lump all the ID companies together because they aren't all that way. Everything you own that you didn't make or grow has some profit built in somewhere; that's the grease in the machine. The ID companies still offer a far better value than what you'll find in any store at the same quality not price point.