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Loudspeaker margins

Discussion in 'Home Cinema Speakers' started by smallangryboy, Jan 14, 2005.

  1. smallangryboy

    smallangryboy
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    Does anyone know what sort of margins a retailer makes on hisfi gear such as Loudspeakers and Subwoofers ?

    A colleague of mine asked if I could find out, and to be honest I didn't have a clue as to where to start !
     
  2. pragmatic

    pragmatic
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    I would make a guess of about 40%, as web retilers are a lot cheaper and they must still have a decent margin.
    Also some compnays forbid 'distance selling' of there products i.e. mail order or internet, why is this not illegal isn't this anti competative as the retailers will almost always charge rrp?
     
  3. Londondecca

    Londondecca
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    Many years ago, I was involved in HiFi, various firms recommended different prices but 30% would be an average margin. That might well have dropped due to other market pressures. Other factors which could influence the price are what type of business you buy from, ie traditional shop with demo facilities etc to or a high volume but low margin retailer. Accessories would tend to have much higher margins but turnover tended to be quite low. Of course things might have changed a lot in the last 20 years
     
  4. nheather

    nheather
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    From what I have seen, these products are still sold at discount prices you just have to go to the store to receive them. For example Kef 2005.2 retail at £800 but can be easily found for £600.

    I imagine the real issue they have with distance selling is that it allows you to buy the speakers, try them out for 7 days and then return them for full 'no questions asked' refund. Whilst this is good for buyer it creates a lot of extra work, expense and hassle for the retailer and supplier. They can't just receive them back and sell them to the next customer because I for one wouldn't accept an opened box of previously used speakers without a considerable discount.

    Cheers,

    Nigel
     
  5. pragmatic

    pragmatic
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    But if you go to many actual hi fi shops they might not give you a sealed boxed item but intead put the one your looking at / demo'ed in a box and thats what you'll take away.
     

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