RBH or Amway? How to get a good deal...another story from Tomorrow

[Tomorrow]

Ever since joining this forum, we've heard terrific things about RBH speakers. I had not heard of them before...and I'd gather many of you were likewise ignorant of the brand. Many of us came here as complete noobs, however...so we can be forgiven this lack of knowledge. But they've received high praise from Audioholics staff and are included in the AH Recommended Home Theater files.

Well, I've been itching to hear a set of these wondrous things that for some reason are reasonably difficult to find. (That should have been clue #1 to me.) They are also rather expensive speakers. But according to an admin's statement to a potential dealer, RBH offers a generous percent-of-return to dealers...meaning they're marked up nicely for dealer profit (...above or below the norm for such practice I do not know). (Clue #2.) I've seen them for sale by the ton on ebay from some guy in Layton, Utah (home of RBH). Prices for his new and demo gear were roughly 1/2 retail pricing. (Clue #3.) But I didn't want to buy from anyone on ebay until I could at least audition a set.

So I inquired of RBH where I might find their nearest dealer. There are 3 in my state I was informed. The nearest was 80 miles away...not too bad considering my rural location. The other two are hundreds of miles distant. RBH sent me the address for the 'business' and off I went on a Monday, late morning. My quest ended in a semi-rundown residential neighborhood...the kind where you find lots of pitbulls and 'greenhouses' and old pickups. THIS was the only RBH dealer in all of my half of my state?! (Location is unstated to protect the .... innocent. LOL. )

Well, obviously no one was home at this 'business', so I called the cell phone # listed on the front door (for drop-offs). A nice fellow answered and said he just had his one RBH setup, his home HT system, but I could listen to it if I made an appointment for ...preferably...Saturday. I see. (We wouldn't want to interrupt his real job for a speaker sale, would we?!) He also volunteered that he hoped to have a commercial business site someday. (Nice goal. )

So what do we have here? It seems like a nice guy who would like to get into the audio business...maybe even does a few audio-related things. He's trying to make ends meet...and maybe, just maybe he's smart enough to convince RBH he's going to really sell RBH speakers if they'll just send him a nice 5.1 or 7.1 system (at dealer's cost, of course) to demo. So now he has a nice home setup for 30% (or whatever) off. I can't say much for RBH's vetting of this 'business', but, well...as I said...RBH's are difficult to find. One would like to think that this is an aberration within RBH marketing and dealer networking and most conduct above-board operations.

But it dawns on me...take out a business license (maybe 50 bucks), call yourself something a/v-ish, let RBH know your interested in making them a fortune if they'd send you an at-dealer-cost demo package. And have fun. Gosh, this may be the only way I'll ever get to hear a set.

Hmmm...I wonder if this will work for the Sonus Fabers I covet.......

Good cheer.

 

[stratman]

You combine this story with Andry's A/V Cult and it's quite frightening! Except Tom's was fiction and this is real!

 

[mjhamre]

I was similarly interested in listening when I was looking for in-walls a while back, but after going back and forth with RBH several times could locate no dealers within 100 miles that had anything set up, and that includes all of the bay area around San Francisco and Sacramento. They had lots of installers, but nobody with product on shelves that could be listened to. For me that is OK if we are talking ID and a 30 day no hassle return, with prices to match, but I gave up at that point.

 

[gene]

But according to an admin's statement to a potential dealer, RBH offers a generous percent-of-return to dealers...meaning they're marked up nicely for dealer profit (...above or below the norm for such practice I do not know).

I don't know what ADMIN told you this, but RBH's mark up is no different than 99% of the B&M type speaker companies in the business. In fact some of the much LARGER mainstream brands have an even higher markup than RBH.

 

[MDS]

Actually I think it was a post by InTheIndustry in another thread about which brands to carry for a new A/V store where the 'generous margin' was mentioned.

 

[RLA]

store where the 'generous margin' was mentioned.

This may look good on paper but when you consider ovehead and shipping from the manufacturer "generous margins" quicky evaoporate

 

[Tomorrow]

I don't know what ADMIN told you this, but RBH's mark up is no different than 99% of the B&M type speaker companies in the business. In fact some of the much LARGER mainstream brands have an even higher markup than RBH.

It's quite possible that the markup is nominal, and that's what I said. But as far as what ADMIN told me this....does Clint qualify? Here's a post from a thread where he calls the margin "excellent"...

RBH Sound may not be a big name but their Signature Series line is amazing and will sell itself in your demo room. Dealer margins are excellent.

 

[Audioholics]

It is excellent and not above industry standards... I'm not sure why consumers think margins are bad... Internet direct companies typically just 'keep' theirs.

Can't wait to see how this post is twisted around and used against me later...

 

[RLA]

When you consider the very high cost to ship speakers to the dealers ( yes the dealer pays for shipping and it comes out of the margin) Then consider the cost to operate a showroom,most dealers are very lucky to make 10-15% from the sale. If they give discounts and take credit cards the margin could be less.

 

[majorloser]

When you consider the very high cost to ship speakers to the dealers ( yes the dealer pays for shipping and it comes out of the margin) Then consider the cost to operate a showroom,most dealers are very lucky to make 10-15% from the sale. If they give discounts and take credit cards the margin could be less.

But think of all the cool toys you get to play with everyday at work

 

[billnchristy]

Guys, if these companies didnt make money they wouldnt be around to make you speakers later.

 

[Tomorrow]

I'm not sure why consumers think margins are bad...

Which consumers think margins are bad? Industry wouldn't exist without profit.

 

[mtrycrafts]

It is excellent and not above industry standards...

Then the industry has an excellent margin? When would it become average then if the industry as a whole is excellent. Or, is that just a figure of speech and no relationship to the amount as such?

 

[MDS]

A successful business obviously has to make money beyond their costs, but when 'generous margins' is touted as the reason a particular product should be stocked that speaks to the dealers and NOT the consumer.

Monster certainly has 'generous margins' and most enthusiasts know that their prodcut is no better than others.

 

[Xsound]

What a crock. The truth is in electronics, the margins are not consistent. There is almost no profit in displays unless you are a big box store, even then it is very small. Speaker are usually one of the higher profit pieces; receivers, amps, etc. are somewhere inbetween. A dealer needs good margins in speakers to offset lack of margin in other pieces.

RBH margins through distribution (not direct) are good, but they aren't the best around. Some companies' are better, some are worse. Even at their best, the mark-ups on speakers as a whole are in line with or less than mark-ups in businesses like food service industry, and fashion.

 

[Audioholics]

I personally have always wondered what a bottle of shampoo REALLY costs... or a box of cheerios. Loudspeaker markups (and electronics in general) don't bother me one bit.

 

[Xsound]

Clint, I will assure you the fish, shrimp, oysters, scallop, etc on the $20+ seafood platter you get at Franks doesn't cost $10. Just like the syrup & CO2 of that $1.50 big gulp from the convenience store doesn't cost them .75

 

[annunaki]

If you think that markup on electronics and speakers is too high, how come no one questions the local department store when they buy clothing? Clothing has huge markup. Ever wonder how they can run 70% off sales and still stay in business? Then, when the season changes, run them at 30% off of the 70% off price and still make a little money. I do not see anyone go into their local JC Penny/Younkers/Macy's ect. find a shirt or something they like and take it up to the nearest employee and say, "if you do not match XYZ's price or give me 20% off I will go get it somewhere else." You would probably be laughed at.



Some restaurants have very high markups especially on Alcohol. A decent bottle of booze costs about $18.00 for a liter. There are 42-43 one ounce shots in a liter. Most places are now using measured pours to prevent over serving. Say they get 21 drinks made on one bottle at 4.50 a pop. That is a total of $94.50 or gross profit of $76.50. An 81% margin. I do not see to many people trying to haggle their local restaurant for a deal on a drink or meal.

 

[annunaki]

....Just like the syrup & CO2 of that $1.50 big gulp from the convenience store doesn't cost them .75

No it costs $.10

 

[majorloser]

Here's something to consider:

Next time you're at the grocery store look how much that 16.9 oz. bottle Dasani or Aquafina water costs.

Then remember that (in most US towns) water is piped directly to your home for less than $4.00 per 1,000 gallons. And that water has to meet a MUCH higher standard than bottled water.

Talk about markup