Loudspeaker Markups

[digitalsam]

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Was perusing a local Canadian A/V forum this evening when I noticed that one of the forum Members / Dealers, was conducting a year-end Castle Loudspeaker blowout sale. He had the following available:

Castle Richmond3i - Regular $800.00 Retail - on for $500.00 Cdn.

- and -

Castle Compact Column - Regular $1300.00 Retail - on for $750.00 Cdn.

What amazed me was the markups that were regularly supported, while many A/V retailers have told me in the past that they might get 15% to 20% markup on A/V hardware.

This particular cat however, is willing to drop $300.00 in the first case and $550.00 in the second case - and still state that the price is "delivered to your door".

This tells me that he is biting off a markup way beyond what I had assumed was the industry standard. I doubt he is taking a hit, most likely selling for cost or cost plus 5%.

As far as you know, what is the 'regular' retail markup on A/V hardware in North America (or Europe for that matter)? Not bitching or complaining, just curious...

Andrew D.
Cdnav


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[rexter]

Having worked at retail store in the past (not at the electronics store), I've seen that our mark up is as high as 40 to 60 percent. Even if the company has a sale they still make 15% more at the least.

Like you I'm curious to know how much the US does it. But my observation is that some stores doesn’t put as high a markup as others.

The consumers are at their mercy and their ability to make profit. But I also understand why there’s so much mark up. After all, the stores have to pay for other things like employees tax, insurance, salary, electric bill, rent and other bills/expenses. One other thing is the companies have to make a profit, so that when facilities break down and start to get old they will have enough to build or buy new ones.