MSRP!? I hope not! (1 Viewer)

[Tim Beebe]

I'm buying my first home theater system REAL soon. I'm looking at an MSRP cost at the local PSB dealer of $2627.00. I do have a very good reason to buy it here instead of online-- 6 months same as cash. Is there an average amount that's usually taken off at an official dealer for speakers/etc.? How much should I say I want to pay for the system? How much should I expect to pay?

P.S. Sorry if this is in the wrong area. Wasn't sure where to put this.

 

[SethH]

Especially when purchasing a full system I would expect at least 10% off MSRP and maybe even 15 or 20. It seems strange to me that they would even list it at MSRP as most places, at least in my experience, list products at least 5% below.

 

[Tim Beebe]

Oh, well actually I'm getting the MSRP off of the official PSB site. I'm not positive what the dealer will be selling them for yet. I wanted to know beforehand. I thought I'd see what to aim for if I attempt to haggle.

 

[GlennH]

I agree, 15% to 20% off would be a reasonable discount from a B&M authorized dealer.

 

[SethH]

If they do have it listed below MSRP I would start by offering at least 10%-15% below list and work from there. When you're buying all the speakers for a surround system at once they should be willing to work with you.

 

[Jesse Sharrow]

Im a salesman myself. So I should be able to help. Start with a pretty low price like 20% off and work your way back up. Dont be rude about it. But just start low and work up. You never know they may go for 20% off.

 

[DanaA]

Yes, always be polite to the sales personnel. I'd also be somewhat firm about getting a decent discount. You are putting a good deal of money into this and it never hurts to hint that you'd like to establish a long term relationship with the store. This type of relationship can be mutually beneficial to both the store and the consumer.

 

[Michael__M]

Take a look at DMC electronics. It's up top as one of the sponsers. Their prices are great and I had no problems dealing with them when I got my PSB's. I got factory blem's for about 40% less than what I could get locally. The best I could get locally was 15% off list. The money saved should offset the 6 months same as cash. Ready...Set...Charge!!!

 

[Philip>L]

If you can, pick up a copy of "The Absolute Sound" magazine from this month (March 2004) and read the editorial from Robert Harley entitled:

"Your Relationship with the High-End Audio Retailer"

This editorial is actually a reprint from his book:

"The Complete Guide to High-End Audio"

The long and short of it is that you should get more value than just a pair of speakers out of a transaction with your local high-end store rather than just getting a great discount online...

 

[Chu Gai]

Having lived in and around NYC, haggling or dickering or bargaining is considered by some an art form. Myself, I don't worry too much about the long term relationship. I would want to get an idea of just what services I can expect at the store in the event that an item needed to be serviced. That might mitigate matters somewhat.

For starters, I'd hunt around for online prices to get a feel. S/H becomes a part of this. If I could find say 3 places, I'd strike an average. For arguments sake, I'm assuming this is just speakers. Let's say the discount you found was 18-22% from online shopping. Further let's say you're prepared to to strike an immediate deal at 22% but you'd like to do a bit better. Let's say 25%. Go to the dealer and offer something less. 28% off. The dealer will balk. Tell him your wife or girl friend will hit the roof if it's less. He'll still balk. Give him your business card and write your number on it. Tell him to give you a call if he can do better and walk out. If he calls, hear what he has to say. Still no good? Tell him you'll discuss it with your wife. Come back in a couple of days with her. It's time for good cop/bad cop. Show her the speakers...fawn over them. Let her say loud enough that the salesman hears it's too much. Approach the salesman with your wife. Explain how you can't get his price past her. He'll say something like 'well what price works for you Mrs. Beebe? She'll come back with something close to 25% off. He'll probably counter with something awfully close. Then buy it.
I've heard this relationship thing for years. Develop a relationship with your car dealer, with your clothing store, with your jeweler, etc. I'm reminded of a quote made by some British statesman..."We have no eternal friends. We have no eternal enemies. What we have are eternal interests." It's in your best financial interest to strike the best deal possible. The dealer won't sell for less. In the end he's going to try and hit you up for cables and a power conditioner. Like taking your kids through the candy aisle at the supermarket.

 

[HienD]

Depending on the brand, you should get around min 15%-20%. I've been to lots of local dealers that will offer me 20% off with no haggling. Some speaker companies don't allow more then a set amount so 20% might not be feasable.

 

[Michael.M.C]

Your "6 month same as cash" is being financed by your having to buy it at MSRP. No free lunch here.

If you want to save the most, ask what they will accept on a cash basis. The difference will tell you your hidden finance charges.

(I would still try to negotiate for a lesser price by shopping the entire country online for your absolute best price)

 

[Philip>L]

Please don't think from my earlier post that I am suggesting in any way, shape or form that one should pay MSRP at a local dealer. My point was simply that one should apply some value simply to the fact that a local dealer exists and allows you to come in and sample its offerings.

I, for one, would not be happy with ordering audio products online that I had never demoed, and if nothing else this is a service that a local brick and mortar offers.

I don't think it's entirely fair to utilize a local store for auditioning and selecting audio equipment and then running to the internet to undercut the local guy's prices. The reason many internet stores can offer lower prices in the first place is that they don't have the overhead of an actual storefront.

It certainly would be a shame if more local shops had to close because people don't realize the value of being able to walk in and LISTEN...

 

[BrianWoerndle]

I have bought a lot of gear from my local store. I did not get the best discount the first time, but it keeps getting better with everything I buy. The last time I was there was during a private sale for existing customers only. I got an average of 34% off MSRP (I paid $1950 for $2950 worth of gear). So in the long run, I have done just as good as buying online.

 

[Chester II]

Dudes,

Chu Gai's approach is fun but time-consuming. If you spend that same amount of time working at your job, relaxing at the beach, or whoaring at the local massage parlor, that's time better spent I believe. I don't know where you live Tim Dude but around here in the San Francisco area I just call up ALL the local dealers of a given product and ask for their lowest price. Some will quote you high, some won't quote you at all and ask you to come in (forget them), and some will ask you for your phone number so they can "talk to their manager" first and get back to you. Just let them know you are calling ALL the local dealers and that gets their juices flowing. In twenty minutes of phone calls over a cup of tea (milk and sugar please) I'll have everybody working FOR ME and I've NEVER even left the house. This approach works for buying a car, boat, hookers, whatever.....even hi-fi gear....

Good luck dude,

Chester

 

[Shane Martin]

Chester,
I would agree with you regarding Chu's approach which will work for cars but not for audio equipment in my experience. Now calling them on the phone won't work either as salepeople usually don't wish to do this because it could be construed as attempting to price match or whatnot. They want you to come into the store and I respect that.

Chu,
Your approach might work for 1 purchase but it won't work for a 2nd. The idea behind Robert Hartley's book is that once you buy there once, and buy again they will continue to discount even more. This does work and works WELL for both you and the dealer. Now if a dealer won't come down further on the 2nd trip back that is the only purchase I would make from them. It's not a guaranteed way to do business with a dealer. Your approach takes an awful lot of time and money and others time as well. Time is money and it has to be figured in.
Exactly you are going to pay more because you want something out of the ordinary from a dealer. If say you were to walk in with CASH in hand, then you'd be surprised at how fast a dealer will come down. That shows you are dead serious and he knows he can get a sale now if he does the right thing.

I'd say if you get 15-20% off and you get 6 months same as cash, you are doing very well.

 

[Chester II]

Shane dude,

If somebody wants to sell their product and they know the guy across town is selling the same item for $20 less then they will usually match it or beat it by 5 to 10 percent. This has been my experience with ALL types of merchandise. OF COURSE I'm trying to price match or price beat, or whatever...that's called getting the best deal. When I get the rare case of somebody saying they can't quote me over the phone it's because they want me to come into their store and pay more. That is a very simple and very effective sales approach and it's everyone's choice to accept/respect it or not. I'm always upfront and honest with people by letting them know I'm shopping around. Works all the time.....

Dudes,

Chester

 

[Shane Martin]

No not really. If they were serious they would come in and lay down their best deal and give me a chance to respond. I let them know when I come in that I'm not here to waste time and they can shoot me the best deal now or I walk. 9 times outta 10 they will say and this is corny for sure "what can I do to earn your business?" At that point its a matter of me telling them what I want to pay(within reason of course) and boom I'm done. CASH in hand works miracles. Talking to some guy over the phone doesn't work. If I'm the salesman I want you in my face with cash in hand and I'll know your serious and not kicking tires.

Maybe its the gear I'm looking at but I don't have alot of choices to choose from where I buy X piece of gear. I can't go online and pick it up as the types of gear I'm looking at is not sold online and usually there is 1 or 2 dealers at the most carrying it locally(even in a big city like Dallas).

 

[Chu Gai]

There's a minimum price the dealer will sell at that's mitigated by a number of factors and if there's a secret promotional being given by the manufacturer or distributor to the dealer for selling X amount of units that's not going to be necessarily passed on to the consumer. Following Harley's approach allows the consumer to get screwed good once, then when he comes back he'll get screwed again but this time it won't hurt as much. Maybe the dealer will offer him 40% off on cables that list for $1000 and cost him $250 and aren't any better than $20. Besides, given the nature of Harley's work, he's probably gotten more than his fair share of comps and freebies.
Now given that there are many credit cards that one can get that offer a limited time, say 6 months at some low, below 5% APR, I'd say paying list price and getting 6 months free financing doesn't really sound so good. I want the store to make a profit and I want the consumer to get a break. Seeing as how the store won't tell you their real minimum, it becomes a game. Doesn't take that much time to do a few web searches and make a few posts in the various forums to find out what people paid.

 

[Philip>L]

So are you suggesting that Harley is simply putting in a good word for people that give him free stuff? I seriously doubt that simply because 95% of the products that he reviews come straight from the manufacturer, not the local dealer. He doesn't review dealers, he reviews equipment.