What's It All Really Worth? (1 Viewer)

[Bill Kane]

Jeez, I’m beginning to think we’re blinded by the prices of home electronics because, well, isn’t that just the market? I mean, the markup seems to be huge.

Of course, this observation is based on the MSRP system, which everybody “knows” is unrealistic, right? (sarcasm)

I see a surge protector that lists at $199 online at $145, about 25% markdown. And don’t employees at big chain stores relate they get 60% off!

What sparks my rant is I just bought a new Fridgidaire Gallery gas range/electronic controlled electric oven – a wonderful cook’s stove – for $1475 (just about MSRP) but to me the value in this big piece of equipment is stunning. It cost another $350 for a licensed contractor to add a gas line into my kitchen and install the unit.

Then I think that the total cost is equivalent to a Rotel 1066 and wonder: what’s it all really worth?

 

[Denward]

In this country, a thing is worth what a willing buyer can negotiate with a willing seller.

 

[Mark Paquette]

Isn't capitalism great? Something is worth whatever someone is willing to pay. If nobody is willing to pay the price, then the price usually goes down. If a bunch of people are willing to pay the price, then it usually goes up.

 

[Peter Apruzzese]

Then I think that the total cost is equivalent to a Rotel 1066 and wonder: what’s it all really worth?

If the Rotel were a stove instead of a piece of A/V gear, you might have a valid comparison...

 

[Bill Kane]

...I dont expect much response to my philosophical musings over "value" and I'm a lot cooler now...

Peter, they are both material "things" and I mean no literal comparision; this cud veer off into "what's a hobby worth to you" to "what's a really needed" item, indeed apples and oranges.

I guess I'm saying that maybe our electronic gear is way overpriced if wholesale is nearly half of market retail. As Denward notes, we seem willing to pay for it.

 

[Jason Wilcox]

you should see the markup on cables

 

[Peter Apruzzese]

Bill, I know you didn't mean a literal comparison. I was making a rather poor joke; sorry about that.

To get back to your original post, we need a kitchen expert to chime in and let us know what the markup is on these high-end appliances. I'll bet anywhere from 40-50%.

I guess I'm saying that maybe our electronic gear is way overpriced if wholesale is nearly half of market retail.

I don't think the markup is that high. I believe the average markup on consumer electronics is in the 35% range. Then factor in the cost of doing business for the store and most places clear about 10-15% on a piece of gear. That, coincidentally, is usually the amount you can haggle down when you're a serious buyer.

 

[Philip_G]

you should see the markup on cables

hahah. Usually I'm of the impression the highest markup items are the ones they push the hardest. EVERY time you buy some AV gear you get the "you should really have some monster cables with that! here, only 100$ for a 4' optical cable!" (ok so I'm exagerating a bit) extended, in store best buy warranties, you get hit with that pitch at least twice..

same goes with buying a new car, you get hit with the extended warranty 4 times at LEAST, the special etching on the glass (supposedly because auto glass is big $ and people steal cars just for the glass, so if it's etched with a security # no one will steal it) if you notice dealers that sell this etching, all cars are etched, but you have to pay a couple hundred to activate it or whatever.. what's the point? lesse, all kinds of stuff.
the only one I've seen I would pay for is that 3M stone guard stuff they apply to the front end to protect it from chips, I think the lexus dealers offer that for like 500$

 

[Jason Wilcox]

i work at best buy and take full advantage of my discount....

it's just sick on car audio and accessories like cables.

 

[Colin-H]

What is the discount? Most places I know it's 20%.

 

[Jason Wilcox]

on the car audio and cables it can be anything from 30%-70%

 

[Bill Kane]

ackkk!
Peter has just given me a "D'Oh" revelation, that I was just as likely to eat a similar "high-end appliance" mark-up as with any similar range of electronic gear:frowning:
Buyer's remorse: I agreed on the offered price on the stove BEFORE I went online to the maker's website for its MSRP. I let it ride. But as we say here, my new stainless steel stove is a "Bad Boy."

 

[John_E]

Bill-

I used to sell appliances while in college 8-9 years ago. I would imagine that you paid about 30% over dealer cost, which isn't a bad deal.

Did you buy anything else (fridge, dishwasher, etc.)? If so, you probably were entitled to ask for a better price. If not, you probably were stuck at the "sticker" price. If you like the stove, that's all that matters.

I just moved into a new house last year, and I bought my appliances at 12% over cost. I'm still pretty good friends with the owner of the store that I used to work at. He gave them to me at the employee purchase rate.

 

[Ryan Wright]

if you notice dealers that sell this etching, all cars are etched, but you have to pay a couple hundred to activate it or whatever.. what's the point?

I've never heard of this, but a friend of mine bought a new truck some 8 years ago. They tried to sell him a "security system" for $300. Turns out, the system is already installed! There's a little "key" that plugs in underneath the dash. All it does is connect certain wires together. When they're disconnected ("key" removed), the car won't start.
So they've got a "key" in it, but the handle has been removed so you can't get it out. For $300, you get the same key with a little plastic handle on it. So my buddy gets a pair of tweezers, grabs ahold of the key and yanks it out. He drills a tiny hole in it, then attaches a piece of string so he can pull it out whenever he feels like it. Now remember that he owns this truck. It's not leased, or rented, he bought the thing. So he takes it into the dealership one day for service and they freaked out on him. Threatened him, told him he was stealing from them by not paying for the alarm, and took his modified key away. Now just who is stealing from who here?
Then they tried to force him to pay the $300 for the "security system" (or rather the plastic key that comes with it). He refused. They told him he couldn't have his truck back until he paid for it. He said "Fine, I'm going to call 911 on that pay phone over there, see you in a minute." They backed down.
Of course, they had to put another "unremovable" key in there in order to start the truck, but they threatened him again, saying if he pulls it out and modifies it that they will sue him. I believe his last words to them were "Fuck off." First thing he did when he got home was pull the new key out, drill a hole in it, and attach another string.

 

[Colin-H]

Are there any sources to find out dealer cost?