Brick & Mortar Markup

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NorCalRP

Full Audioholic
In light of the fact that the store owner just lost his home and insurance in California is ridiculously expensive, I think you could consider the fact that he's losing his ass as a good reason to give the guy decent money for what is bought.

Most retailers don't look at markup, we look at margin. We have our expenses and that determines how much we need to make in order to avoid losing money. If we need to pick up what we buy from a distributor, 15% profit means we can lose money just by driving there, going through the process and driving to the job or back to the shop. If it's shipped at no charge, it makes more sense to just stay put. 50 points is doubling our cost, but the expenses still come out of the profit/add to the cost, so the fact that someone has a B&M location means they can't match Amazon and still make enough to survive unless they'll also install it and sell accessories. Sometimes, it's easier to buy some items from Amazon and have it shipped- it's usually faster than having it come from the distributor and there's no guarantee the distributor even has it, which I ran into when I needed a Bluetooth receiver that works over a long distance. I looked for one, ordered it at 11:30 AM and it was at my house at 7:30 that evening. I went in and installed it before 9:30 AM and the facilities manager was amazed that I could have it in and working so fast. That impresses people and that gets us a few brownie points.
I'll give him what he asks. Not going to haggle. I'm not going to pay him more though- I'll give them cash gift cards; that way they won't get hit with any tax.
 
N

NorCalRP

Full Audioholic
Moved here back in '98... dropped out and came to SF with my band. Things didn't pan out, now I'm a Chef in Wine Country! ;)

CA is a magical, wonderful, beautiful place. My love affair with the greater Bay Area is almost 20 years old! But she's becoming a cruel mistress, this land we love here, and the toll can be very, very high as we have witnessed in recent years.
Two winters ago I was working in Napa, Sonoma Marin, etc. Man, that was a disaster as well. After 6 years of extreme drought all those trees were weak. When the soil column became saturated from all that rain, as soon as the wind blew those trees just fell over, and their root balls just came right up and out of the ground. Before that winter I'd never seen rain blow upwards.
 
AcuDefTechGuy

AcuDefTechGuy

Audioholic Jedi
Just listening to the KEFs I mentioned is proof enough. I know some folks swear by them, but I learned hard and fast what listening fatigue meant. I probably wouldn't consider them, but for different reasons than the KEFs... but hoping to hear the ELAC UF5 and Adante standmounts soon, just for my listening education. ;)
Just never know what anyone will like. All part of the journey. The evidence is seeing all the pre-owned/used sale listings on Craigslist, eBay, Audiogon for every flagship loudspeaker available that represents "the best" from each company.
 
N

NorCalRP

Full Audioholic
10 to 15% on products over $1500. If they have heavy inventory another 5. You drop enough coin, 25%.. that's an average. Brick and Mortar survive off of installs and accessories since the mid 2000s. No money in products except cables and wire. Displays and TVs have almost no margin, so expect their offers to reflect the above.
My guy mentioned 50% of the MA's
 
ryanosaur

ryanosaur

Audioholic Overlord
My guy mentioned 50% of the MA's
Wow.
You could pick up the 500s and c350, get the 300s for surround! $2688+tax for 5.0 rig. (assuming he has them) I would seriously reconsider thinking about he Philharmonics and Ascends with that opportunity! That's my dollar, my 2 cents. I'd be happy with that set up! (Even if they were all mismatching! 1 day, a roll of masking tape and some newsprint, and a few cans of rustoleum... :p )
 
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KenM10759

KenM10759

Audioholic Samurai
My guess is you listened to KEF speakers that were setup poorly or damaged. I can't listen to certain Klipsch speakers because of listener fatigue (bright tweeters), but I can listen to my KEF R500's or LS50's for hours on end. The key for me is that I don't have the speakers pointed straight at me, rather I'm a wee bit off-axis.
 
S

shadyJ

Speaker of the House
Staff member
My guess is you listened to KEF speakers that were setup poorly or damaged. I can't listen to certain Klipsch speakers because of listener fatigue (bright tweeters), but I can listen to my KEF R500's or LS50's for hours on end. The key for me is that I don't have the speakers pointed straight at me, rather I'm a wee bit off-axis.
Something that needs to be stressed more is that if someone gets fatigued by a speaker, one thing that can be done to alleviate that is, if the speaker has a uniform off-axis response, simple listen to the speaker at a greater toe-in or toe-out angle. This can be done with the KEF speakers since their off-axis response is so smooth. It is essentially like equalization that shaves some energy off the top end. A lot of speakers are like this, but not all. Also keep in mind that a lot of speakers are meant to be listened to off direct axis so that they are facing forward in parallel angles rather than directly facing the listener.
 
Johnny2Bad

Johnny2Bad

Audioholic Chief
Markup and margin are the same thing, expressed two ways.

Whomever sets prices is probably working with true cost x markup. Whomever does the taxes and the annual financial statements is probably working with margin. But anyone in retail whose day to day tools doesn't involve a bucket and a mop should be able to translate one to the other instantly in their heads.

Things must be different in the US, here fire insurance is a condition of your mortgage ... the bank or mortgage lender gets a copy of your policy directly from the insurer... so not having any is against the law, and by that we mean the lender gets into regulatory trouble, and they can (and will) demand a balloon payment since you're in breach of the mortgage terms if you don't deal with it promptly.

But I don't want to comment on his personal situation as a tragedy like fire is always a huge blow, regardless of how safe everyone is or what was lost or saved. There is no upside, there is only varying levels of downside.
 
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highfigh

highfigh

Seriously, I have no life.
I'll give him what he asks. Not going to haggle. I'm not going to pay him more though- I'll give them cash gift cards; that way they won't get hit with any tax.
If he's a legitimate business, he'll have an accountant or someone in the office doing the books and if he takes money but doesn't claim it, he risks some harsh penalties. He lost his home, but there's no reason to jeopardize his business by taking money and not claiming it as revenue. If he loses the business too, that would be tragic.
 
ryanosaur

ryanosaur

Audioholic Overlord
Something that needs to be stressed more is that if someone gets fatigued by a speaker, one thing that can be done to alleviate that is, if the speaker has a uniform off-axis response, simple listen to the speaker at a greater toe-in or toe-out angle. This can be done with the KEF speakers since their off-axis response is so smooth. It is essentially like equalization that shaves some energy off the top end. A lot of speakers are like this, but not all. Also keep in mind that a lot of speakers are meant to be listened to off direct axis so that they are facing forward in parallel angles rather than directly facing the listener.
I wondered about that a bit, if that would help... he did have them toed in towards the LP and mentioned point source a couple times in the conversation. My experience with the MA Silvers at a different shop, not toed in, and I almost got up to do that but chose not to.
 
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NorCalRP

Full Audioholic
@NorCalRP, Did you end up getting the speakers? Would love to hear! Cheers
Sorry if this disappoints, but I did not. The discounts ended up being 15% off. The only Silver 300s they have are in natural oak. Had they been 40% to 50% off like he said it would be worth getting the least desirable (to me) finish. Back to the search.
 
ryanosaur

ryanosaur

Audioholic Overlord
Sorry if this disappoints, but I did not. The discounts ended up being 15% off. The only Silver 300s they have are in natural oak. Had they been 40% to 50% off like he said it would be worth getting the least desirable (to me) finish. Back to the search.
No disappointment. Just a bummer that it didn't work out for you! ;)
I think I'm getting closer in my search. A guy down the peninsula is going to host me to hear his Philharmonics!
Very exciting.

Cheers
 
N

NorCalRP

Full Audioholic
No disappointment. Just a bummer that it didn't work out for you! ;)
I think I'm getting closer in my search. A guy down the peninsula is going to host me to hear his Philharmonics!
Very exciting.

Cheers
Right on! Are you talking about Balboa?
 

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