Paradigm price fixing

Discussion in 'Archived Threads 2001-2004' started by Cooper_B, Oct 25, 2002.

  1. Cooper_B

    Cooper_B Agent

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    So how tight is Paradigm's policy of price fixing in their dealers? I've been to a dealer in San Diego and in Pittsburgh, and both refused to discount off MSRP, except for a floor model. Yet I hear others mention purchasing for much less.

    Post your experience!

    -Cooper
     
  2. Michael Yung

    Michael Yung Stunt Coordinator

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    In NJ, the price is somewhat flexible. But the real deal is in Canada. Favorable exchange rates and 15 to 20% off retail on a fairly regular basis.
     
  3. MarcVH

    MarcVH Second Unit

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    I don't know that it's fixing so much as the fact that the set of "authorized dealers" is so geographically spread out that there's frequently no meaningful competition, and hence no particular reason to sell for less than MSRP.
     
  4. Kevin. W

    Kevin. W Screenwriter

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    Cooper,

    If you can make it too Canada, this is where the deals are.

    Kevin
     
  5. Jeff AW

    Jeff AW Stunt Coordinator

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    Canada is the deal, definetly! My local buffalo dealer didn't budge alot in price, so I "discovered" here that you could get them in Canada for a heck of a deal.

    I got my two studio 40's, studio CC and Servo 15 in Canada for about $2000 US with a favorable exchange and once my GST and PST was refunded. I live in Buffalo, so it was a simple 45 minute drive into Canada. The only pain about it is you have to get your GST/PST refunded, and its not that bad.

    So if you truely want paradigms go to canada....
     
  6. Cooper_B

    Cooper_B Agent

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    Oh yeah, and the reason I said price fixing was that the Pittsburgh dealer said they couldn't discount. He said no dealers are allowed to, and that he would personally report any dealer that he found doing so. Sounds like hostility toward capitalism.

    And I'm usually pretty polite to salesman. People talk about how dealers need their markup. Yet the Yamaha dealer willingly gave me ~$50 off his CDC-775. I wonder if it really is corporate Paradigm policy, or just some tight dealers. Maybe I should call up Paradigm & ask.

    -Cooper

    p.s.: Canada is sounding tempting, but I'm in Connecticut at the moment.
     
  7. David Sim

    David Sim Agent

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    I haggled with the dealer near me and said I had no problem with road tripping to Canada.
    I ended up getting the Studio 100s Studio CC and Studio ADPs for $2800 US plus he threw in some Kimber cable for the fronts and center.
    I'm not really sure if this was a good price but I wasn't really going to drive all the way to Canada.
    He doesn't need to know that.[​IMG]
    Umm, did I get a good price?
     
  8. Chas_T

    Chas_T Supporting Actor

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  9. Mike OConnell

    Mike OConnell Second Unit

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    I got about 20% off my Paradigms, but luckily there are two dealers in the Kansas City region, and one near my parent's hometown in Iowa.

    Not allowed to discount......... that is a bunch of hogwash.

    Mike
     
  10. Dustin B

    Dustin B Producer

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    David, not bad for the US. MSRP in Canadian dollars is

    100 - $2400
    ADP - $1050
    CC - $600

    So $4050 total. 20-30% discounts aren't uncommon in Canada. At 25% that takes you down to $3000. Then rough conversion is 63 cents on the dollar so that takes you down to $1900USD + whatever it would have cost you to drive to the dealer in Canada and back. This doesn't include taxes, but with a little effort you can get them both back.
     
  11. Cooper_B

    Cooper_B Agent

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    Alright, well thanks for the responses. I hate that feeling of falling for misinformation, especially from salesmen. Ick.

    -Cooper
     
  12. Bill Lucas

    Bill Lucas Supporting Actor

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    "Sounds like hostility toward capitalism."

    Actually, it sounds like capitalism, period.

    Does anyone get a discount when they buy something at McDonalds? Do you haggle over the price of nails or lumber at Home Depot? I fail to understand why people think it is their God given right to get a discount off of list price on stereo equipment. The dealer is under no obligation to give a discount nor do they need to give a reason as to why they don't discount. The consumer on the other hand has the right to not make the purchase. That's it.
     
  13. dpippel

    dpippel HTF Premium Member
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  14. Jon Cheung

    Jon Cheung Stunt Coordinator

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    When I was shopping around for Paradigm, the dealer that I went to easily went down 20% and I'm in Canada so I think it's definetly worth coming up here to buy Paradigm.
     
  15. Chas_T

    Chas_T Supporting Actor

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  16. Scott Falkler

    Scott Falkler Second Unit

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    I am in Oklahoma and got my Mini Monitors for $289 a pair.
     
  17. Aaron Smithski

    Aaron Smithski Stunt Coordinator

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    It looks like Bill must own an audio store or something...[​IMG]
    MSRP=Manufaturer's SUGGESTED Retail Price...Well, that's great that they make a suggestion for the dealer network to reference. It is then up to the dealer to decide how they wish to price the product in accordance with the profit margin they desire or what the market will bear. Paradigm is a very highly respected manufacturer of speakers so perhaps they can command full list price; that is up to the buyer. I totally agree with Doug, historically it is almost universally expected to get some sort of discount on audio equipment.
    I don't recall seeing an MSRP designation next to the price on the board at McDonald's last time I ordered a Big Mac![​IMG]
    I bet Bill is happy to pay full manufacturer's sticker price for his cars too! [​IMG]
    Aaron Smith
     
  18. TonyTone

    TonyTone Supporting Actor

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  19. ChrisDixon

    ChrisDixon Second Unit

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    Cooper,

    Which dealer did you go to in Pittsburgh? I've noticed a wide variety of quality, knowledge, and price flexibility around here. One place I know of has about the worst customer service that I've ever seen in retail.

    Chris
     
  20. Bill Lucas

    Bill Lucas Supporting Actor

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    Yep, I knew the flames would come. Doesn't bother me. [​IMG]
    Aaron,
    I own a custom installation business. I don't deal with Internet buyers or shoppers. What we do is worth the price of admission and the level of service and support we provide is far beyond that of any retailer.
    What you guys don't understand is that the dealer is under no restraint from any manufacturer to sell a product at a certain price. It is my choice. However, to stay in business and service my customers I must maintain a certain margin. If I go out of business my customer base is SOL. So no, you don't get to decide my pricing strategy. You can choose not to buy, but you can't set my prices. Chas thinks that selling at list price is likened to highway robbery. Does he have any idea how much of the margin is eaten up by overhead? Not likely. Everyone here seems to see margin as pure profit. The truth is that most companies in this business operate at an after tax profit of about 8% after all expenses are paid IF they sell at full list price. Doesn't seem like highway robbery to me. If they discount everything heavily they won't stay in business.
    Of course, I'm sure ya'll will see put to tear apart every phrase I've written. No problem, it's expected. But remember, if the company that YOU work for doesn't have its eye on the bottom line then you will eventually be out of a job. I enjoy what I do and I feel that I have an obligation to my clients to service them in the future so I'll charge what I need to charge to remain a viable business. Regards.
     

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