How inflated are MSRP prices, and is it company dependant?

Discussion in 'Archived Threads 2001-2004' started by John-Miles, Dec 3, 2002.

  1. John-Miles

    John-Miles Screenwriter

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    I am asking this because i am considering getting the Yamaha S2300 when it comes out, but the most i can really afford to spend is about 1200 canadian. however the MSRP is 1000 american.

    But I also looked at the Pioneer 45a, and that has an MSRP of 700 or so american, but typically sells for 400-500 according to members of this forum, which when converted to canadian dollars would be about 700 or less. i ahve also seen some other examples of overinflated MSRP prices, but im still not sure if this is typical or not. does yamaha have over inflated prices? how much dealing can be done i wonder?
     
  2. Craig Robertson

    Craig Robertson Supporting Actor

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    generally, dealer cost is MSRP minus 40%, but this can be affected by a lot of factors and vary by MFR. a high volume dealer can usually expect additional discounts. one shop i worked in, not HT related but still electronics, we were the largest dealer in the country for one MFR and got such a discount that we could sell below "dealer cost" and still make a good margin.
     
  3. Matt Meyer

    Matt Meyer Stunt Coordinator

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    Yea I would say 40% is average, 1 source I have that I can buy some stuff through is about 50%. But it all depends on the sellers volume and manufactures policy.
    Matt[​IMG]
    In looking back at this post I should have just said: "Yes I agree with the above post" since it is the same post reworded.[​IMG]
     
  4. Tom Moran

    Tom Moran Agent

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    After operating costs retail margins are more like 5-10% than the %40 over cost that people here are talking about. The discounted products you see in retail shops are often discounted at wholesale so the store is left with a similar margin to non-sale items. In other cases the retailer just needs to move inventory so discounts are based on factors other than cost.

    Put another way, operating a store is not free. If you value having a retail shop where you can audition gear in a suitable and comfortable setting then don't expect that same retailer to sell you a product for 5-10% above their cost because that wouldn't even pay the electricity bill. And no I don't work in retail I just happen to own a business.

    If price is your only consideration then clearly shopping on the Internet is the way to go just make sure you are buying from a authorized retailer so you don't end up without a valid warranty. Also watch out for the dreaded "restocking fees" that can leave you paying money for a product you return.

    While Internet retailing is not free the costs are certainly lower than "bricks and mortar" so you can expect prices on consumer electronics to be an average of about 15-25% lower than your local shop. Add shipping to that and you have your actual cost.

    Tom
     
  5. Keith Mickunas

    Keith Mickunas Cinematographer

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    I have a dealer that supplies me stuff at cost plus a certain percentage. I've found in dealing with him that he usually has less of a mark up on Sony than anything else, but the Sony products cost him more. I recently asked him about cheap CD changers and he had both a Sony and Yamaha he could sell me for $130. Their regular list price for each was $140 and $150 respectively. The Yamaha has a better warranty and likely is of better quality. For this store, automotive stuff has the highest markup, followed by speakers, then electronics. If I remember correctly, I've normally gotten speakers around 25% off, and higher end electronics, which have a higher markup, around 20% off. So in my experience, markup is different based on items, cost, and manufacturer.
     
  6. JohnnyG

    JohnnyG Screenwriter

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    The difference between dealer cost and MSRP can vary considerably from manufacturer to manufacturer and even from product to product.

    Some manufacturers even have seperate 'List' prices and suggested selling prices.
     
  7. John-Miles

    John-Miles Screenwriter

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    Thanks Guys, thats alot of help, i guess i just ahve to hope for the best on this particular item [​IMG]
     

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