should a discount be available on boutique speakers? - Page 2 - AVS Forum
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post #31 of 36 Old 07-19-2013, 05:45 AM
 
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Gregzoll, on what planet are you an authority on anything? Just curious.
This one, and more than you have.
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post #32 of 36 Old 07-19-2013, 06:07 AM
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Originally Posted by BobL View Post

BNIB - Brand New In Box
UMRP - Unilateral Minimum Resale Price

While some TVs have UMRP most still have poor margins and many installers stopped selling TVs especially the lower end models.  The big box stores try to make up for poor margins by pushing cables, surge protectors and extended warranties.

Exactly. I know for Best Buy if you are going to break UMRP the only reason is for open box pricing or matching another advertised offer from an authorized vendor. And, if you do break UMRP pricing you have to submit paperwork with transaction information, reason, and department manager approval.

Even UMRP tvs will have very small margins. It is very common to have small negative margins on tvs.
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post #33 of 36 Old 07-19-2013, 06:12 AM
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Originally Posted by g_bartman View Post

The speakers in question are Aerial 7t's.

Then the answer is 'yes', you can get a discount on Aerial Acoustic speakers.

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post #34 of 36 Old 07-19-2013, 07:00 AM
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The UMRP's that I'm familiar with are very strict. For example I received an email from Bose saying that all authorized dealers will be subject to a new Unilateral pricing structure and no discounts can be made to the POS price. Even Bose demo units and open items must be sold at full price because our pos system uses an undefeatable lock on their price. What this allows us to do is send all open items and demo units back to the vendor and they test and repackage. So from this point I understand the UMRP.
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post #35 of 36 Old 07-19-2013, 07:23 AM
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One industry article written by a dealer stated that they made more profit selling an $8000 dollar plasma years ago then selling 20 TVs today and the 20 TVs costs a lot more in sales time and inventory management.  And consumers in general are more focused on price than ever before.  Most people looking at TVs now ask 'What's the cheapest 60 inch you have?" and not what looks or sounds the best.  Current company excluded.smile.gif

 

 What has happened in what is termed 'The Race to the Bottom' is manufacturers have not only cut the quality of the product but also the dealer margins to be price competitive over the years.  The boutique brands may not have cut quality like general consumer electronics but many of them did cut margins.  As both big box and smaller stores have closed, manufacturers are starting to realize that dealers need to make profit to stay alive and have implemented many pricing policies.  So consumers that are looking for that better quality might not find the discounts they did in the past.

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post #36 of 36 Old 07-19-2013, 08:50 AM
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Originally Posted by Dennis Murphy View Post

A 40% gross margin (that would mean a speaker that costs the dealer $600 would sell for $1,000) used to be the norm, but I know from personal experience that dealers will demand closer to 50%.
Perhaps, if they can get away with it. As for the 40% margin, that's what you want to realize. For instance, while most major manufacturers put the base wholesale at 60% of suggested retail, retailers can get significant discounts based on their purchase volume, which can take the margin to 50% or better if the retailer is able to get retail. But that's seldom, if ever. Retail prices don't mean much any more, street price is what most gear sells for, and in most cases for a retailer to still make a 40% margin they have to buy at 60% off retail, not 40%.
This applies to midrange and higher priced goods. In the low end, where you see huge discounts compared to suggested retail, that's because retailers also get huge discounts compared to wholesale. if you see a $300 MSRP item sold regularly at $150 that doesn't mean the retailer is taking a hit. It means that he bought it for $90, and the MSRP was grossly inflated to start with.
This is from my 20 year experience as buyer for a retail chain.

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