I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment, the
reason I ask this is because I do not plan on paying list price for
anything since I am a buyer by profession and I wanted to get some
insight on what the markup is. If someone has worked at a hig end
audio retailer or currently works at a place give me some feedback so
I can intelligently come up with a decent price that is fair for both
the retailer and the consumer. The retailer did say he would work with
me but that is what they all say and my background in purchasing is
not in the audio equipment so I am seeking the advice from this group.
Any help will be greatly appreciated.
Mike Francis

On 5/31/04 12:24 PM, in article N_Iuc.22054$IB.7759@attbi_s04, "Mike
Francis" wrote:

I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment,

About 50% IIRC

Bromo wrote in message news:lTOuc.23712$pt3.13259@attbi_s03...
On 5/31/04 12:24 PM, in article N_Iuc.22054$IB.7759@attbi_s04, "Mike
Francis" wrote:

I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment,

About 50% IIRC

If by that you mean that about 2/3 of the manufacturer's
recommended retail price is the cost to the dealer, and the
remaining 1/3 is the dealer markup, yes, that's about right.
Although it depends upon the type of equipment. The margins
on things such as interconnects and wire and such can be
obscenely huge. On some specialty boutique items, it can be
quite small, while on others, it can be very healthy. Of the
items you're discussing, a 33% margin is in the right ballpark.

Now, that's not to say on a $1000 item with a 33% margin, the
dealer walks away with $333 bucks. One has to pay rent, employees,
utilities, advertising, and all the rest.

"Mike Francis" wrote in message
news:N_Iuc.22054$IB.7759@attbi_s04...
I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment, the
reason I ask this is because I do not plan on paying list price for
anything since I am a buyer by profession and I wanted to get some
insight on what the markup is.

IIRC it's about 5 times the manufacturing cost. The dealers tend to sell
for about twice what they pay, again this is from memory it could be less
now. Things like phono cartridges were marked up considerably more as well
as things like interconnects and wire.

If someone has worked at a hig end
audio retailer or currently works at a place give me some feedback so
I can intelligently come up with a decent price that is fair for both
the retailer and the consumer. The retailer did say he would work with
me but that is what they all say and my background in purchasing is
not in the audio equipment so I am seeking the advice from this group.
Any help will be greatly appreciated.
Mike Francis

I would advise you to get the biggest bang for your buck by investing the
most money in the speakers. B&W's are very, very good. You could however
increase your value by checking into DIY kits. Most speaker kits come with
the cabinets built and crossovers assembled. All you really need then, are
wire cutters and a screwdriver. They can be assembled in an evening in most
cases and you save approx. 50% or more of what the same speaker would retail
for finished. Any of the kits from Scan-Speak, Focal or SEAS offer very
good value. The SEAS THOR kit designed by Joe D'Appolito has been very
favorably reviewed and offers in room response down to 30 Hz. Available
through Madisound www.madisound.com for around $1500.00

North Creek Music Systems also offers kits but are a bit more expensive.
Their Rhythm-Revelator system has also been very well reviewed.

The beigest advantage in a speaker kit, aside from saving money is that you
can have cabinets that go beyond a typical finished speaker.

Then there's the pride of having done it yourself.

Good luck.

Oh, my. A "buyer by profession". In what field? Is it a field in which
one pays for the expertise of the seller or a commodity field? Since
you're a professional buyer I would assume you'd know the difference.
Just to be sure, what do you think the difference might be worth? I have
not ever been an audio salesman, or store owner by the way, lest you
think you're treading on my toes in that way.

-- Bob T.

"Mike Francis" wrote in message
news:N_Iuc.22054$IB.7759@attbi_s04...


I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment, the
reason I ask this is because I do not plan on paying list price for
anything since I am a buyer by profession and I wanted to get some
insight on what the markup is.

On Mon, 31 May 2004 16:24:13 GMT, in article N_Iuc.22054$IB.7759@attbi_s04,
Mike Francis stated:

I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment, the
reason I ask this is because I do not plan on paying list price for
anything since I am a buyer by profession and I wanted to get some
insight on what the markup is. If someone has worked at a hig end
audio retailer or currently works at a place give me some feedback so
I can intelligently come up with a decent price that is fair for both
the retailer and the consumer. The retailer did say he would work with
me but that is what they all say and my background in purchasing is
not in the audio equipment so I am seeking the advice from this group.
Any help will be greatly appreciated.
Mike Francis


Spend a little time on the internet figuring out what these things are going
for. Look at what people are asking for similar stuff on audiogon, for example.
You can get a feeling after a while, particularly for the type of equipment
you're looking at. I would think you could expect to get a price of about 10%
off much audio equipment of this type -- and maybe, if you're lucky, 15 to 20%,
especially on the Rotel. The markup on the individual component is deceiving
because it is not representative of the dealer's true cost. I think the right
approach is to do enough research to become comfortable with a price that you'd
be happy paying for the equipment while still being reasonable, and then going
and asking the dealer if he can do it for that price. If so, great. If not,
hey, maybe you can do business another time.

I don't blame high end dealers for being somewhat offended or skeptical when
people come in saying "give me your best price." They believe in the value
added they deliver, and that approach devalues it. Your experience as a buyer
may or may not be entirely relevant, particularly if the organization you
purchase for has more or less market power with its vendors than you will have
with the stereo dealer.

My experience has been %15-20 off. if I were buying speakers and
integrated or amp/preamp. I think that your range is 2500-4000, but you
need to determine if theft will be a problem. Rentals are a major pain,
and rarely return what you have to spend to make the place rentable
through an agency.

Robert Trosper wrote:

Oh, my. A "buyer by profession". In what field? Is it a field in which
one pays for the expertise of the seller or a commodity field? Since
you're a professional buyer I would assume you'd know the difference.
Just to be sure, what do you think the difference might be worth? I have
not ever been an audio salesman, or store owner by the way, lest you
think you're treading on my toes in that way.

-- Bob T.

"Mike Francis" wrote in message
news:N_Iuc.22054$IB.7759@attbi_s04...




I plan on buying some B&W 705's and a Rotel RSP 1056 receiver from a
audio store in Dallas in the next few weeks and I wanted to get some
feedback on the subject of the selling costs. The B&W 705's list price
is 750.00 each and the Rotel RSP1056 is 1299.00. I wanted to see if
anyone can tell me what the normal markup is for audio equipment, the
reason I ask this is because I do not plan on paying list price for
anything since I am a buyer by profession and I wanted to get some
insight on what the markup is.