Advice sought from speaker dealers... (Wilson Dealers)

Design Audio Video said:
I agree with the delivery and install part. Just a question though. There have been a lot of Alexia and Dag purchases from members lately, is everyone paying retail? I know it's probably not my business but I have my reasons for the question. I have not been able to sell anything at full retail in a very long time. Just curious what goes on in other parts of the country as well as my own back yard.
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Unlikely.


Sent from my iPad using Tapatalk HD
 
To the OP: are you being offered setup with that price? Be aware that setup is crucial on Alexias and not all dealers will (or can) perform it.

It's my understanding (although I could be mistaken) that dealers pay 50% of the retail cost - a huge markup because of the amount of work involved on their end (assuming they perform setup).
 
Mike said:
When I was buying my Alexia's, the A-hole dealer in Miami said to me "if you want Alexia's - you're going to pay MORE than MSRP." They need a bigger store - just for his ego. At that time - he was the only Wilson dealer in Florida and was cocksure he had me over a barrel. Luckily that isn't that case anymore and he lost my business and respect. Wilson knows the whole story and should take the brand away from him. At least they granted the brand to a dealer in his own backyard only days after this incident. Just deserts I say! But they should still rip the brand from him....
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Glad to hear. Dealers like that give the brand, and the hobby, a horrible reputation.
 
If a dealer pays $100,000 for a pair of speakers @ a MSRP of say $220,000 for example; if he sells that pair for say $180,000 then $80,000 goes towards all his other expenditures.
And if he sells ten pairs at that same price, within six months, that's eight hundred grands to pay his bills and feed his family.

And if he also sells audio electronics (amps, preamps, CD players, turntables) and all type of cables then he can start contemplating the purchase of a football team! :)
 
Boys is not that easy,
Dealers also need to buy Demos to have a brand. The factory don't sell only one product to get the brand . Most of the time they ask to have one of each to get the brand
 
Margins are a little off there as well. That's 60% off retail. Ceiling speakers don't even have margins like that. Electronics are way off 60 % and yes most of the time you can't buy just one piece. I had to buy 3 pair of Magico and now pressed to buy a fourth. Had to bring in four pieces of constellation. This is an expensive hobby for both consumer and dealer.
 
NorthStar
How many people do you know that buys 220k speakers. Let alone 8 from one dealer over a year time period. Please send them my way . I would like to buy the Cowboys and remove Jerry Jones.
 
But one thing is true Bob(Northstar), you have to make a bond with your client, you need to treat them very good and invest in them. I see my clients as long relationship and not a one sale only .
 
The dealers who participate here: David, Nelson, Jeff, Bob, etc. are all awesome guys. They go above and beyond. Our job on Audioshark should be to promote the great dealers like these guys (and others - lets hear about them!) and to make others aware of the less scrupulous ones. There is a lot of dealers out there with extensive global networks where they claim to carry a brand - but really don't - instead they import them from a dealer in HK or something. There are even some accused of dealing in counterfeit products.
 
Mike said:
When I was buying my Alexia's, the A-hole dealer in Miami said to me "if you want Alexia's - you're going to pay MORE than MSRP." They need a bigger store - just for his ego. At that time - he was the only Wilson dealer in Florida and was cocksure he had me over a barrel. Luckily that isn't that case anymore and he lost my business and respect. Wilson knows the whole story and should take the brand away from him. At least they granted the brand to a dealer in his own backyard only days after this incident. Just deserts I say! But they should still rip the brand from him....
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Hey Mike your story reminded me of an exclusiv Snell dealer way back in Montreal told me if i wanted the Snell typeQ speakers that i didn't have a CHOICE on his asking price my response to him was USA my friend it's only a 5 hours drive.
 
MrAcoustat said:
Hey Mike your story reminded me of an exclusiv Snell dealer way back in Montreal told me if i wanted the Snell typeQ speakers that i didn't have a CHOICE on his asking price my response to him was USA my friend it's only a 5 hours drive.
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You have no idea how polite and professional I was through the whole thing. His drunken tirade at RMAF was the end of me even attempting to work with him. His behavior was disgraceful. In the end, he got his just deserts. He lost the sale and I won't be referring a single soul to him - ever. The 100+ members in the two audio clubs are now well aware of his actions and unprofessional behavior.
 
Just a note to say I have a lot of respect for the fellow at my dealer who has taken care of me for several purchases. The particular dealer doesn't give much on pricing—and I am a small business owner so I know that while the dealer may pay 60% of retail for the product, you cannot just assume he's got 40% "profit". He has overhead and the right to earn some net profit at the end of the day.

I don't know how audio dealers pay their sales folks, but I assume some of the 40% may go to some type of commission vs. straight salary for the sales rep. I know that sales guy and he's got a couple kids and wife and mortgage, he drives an old car. He's hardly rolling in dough.

The owner of the shop probably is doing just fine, but like any business there are good and bad years and I have no idea what he invested originally to get things going. Being a business owner isn't all about living the high life. Most business owner's work their asses off, or once did, while risking everything. I respect that so I will pay what I consider fair, depending on how bad I want something. Of course, saving $$ whenever I can also important to me. I don't want to outlive my $$ and end up depending on the gov't.

That said, this is a crazy expensive hobby! My wife reminds me... regularly!
 
Bob, you make a great point about many of these dealers working their fingers to the bone but loving every minute of it. Most of these guys aren't driving around in $$$$$ sports cars. My dealer does it first and foremost for the love of music. I can call him up any day and BS with him about gear, music, beer, gardening etc... for a couple hours and know that he's not expecting me to buy something from him. When the time is right for me I do and I always buy from him because of his fantastic service and commitment to his customers. I usually get some type of discount but sometimes I pay full price. I'm not gonna' bust his balls over every little thing because like I said, he doesn't live in a million dollar home with a four car garage playing golf every afternoon. He's just a guy that loves what he does and is just trying to get by like most of us.

I guess my point is that sometimes you drive the car and sometimes the car drives you.
 
Db2

Great point. Everything I make goes back into the company. The biggest complaint I hear is that dealers don't have gear to listen to . I'm trying to change that for my locals. In the last 12 months I have spent over 600k on demo gear, by choice of course. So that being said if you average 30% profit it would take 2 million in sales just to pay for the demo gear. That doesn't include salaries and all of the other overhead involved. I pay about 15k a year just to insure everything. I can ride the current demo gear out but when new models come out here we go again. I would say most dealers are in it for the love of the hobby, the relationships and the perks of getting to play with all of the gear. But definitely not for the money. Hopefully that dealer trying to get more than retail is not in business any longer. That kind of attitude hurts all dealers.
 
Design Audio Video said:
Db2

Great point. Everything I make goes back into the company. The biggest complaint I hear is that dealers don't have gear to listen to . I'm trying to change that for my locals. In the last 12 months I have spent over 600k on demo gear, by choice of course. So that being said if you average 30% profit it would take 2 million in sales just to pay for the demo gear. That doesn't include salaries and all of the other overhead involved. I pay about 15k a year just to insure everything. I can ride the current demo gear out but when new models come out here we go again. I would say most dealers are in it for the love of the hobby, the relationships and the perks of getting to play with all of the gear. But definitely not for the money. Hopefully that dealer trying to get more than retail is not in business any longer. That kind of attitude hurts all dealers.
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+1
 
Design Audio Video said:
NorthStar
How many people do you know that buys 220k speakers. Let alone 8 from one dealer over a year time period. Please send them my way . I would like to buy the Cowboys and remove Jerry Jones.
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i was keeping my nose out of this, but i had to quote this. LMAO!!!!!!!
id love to open a store i know the perfect spot, but i know the start up costs are so large if i had the money to do it, i could just take the money buy some property and retire with it.lol.
 
I have been following this thread on and off and was getting kind of ticked off when some individuals acted like they deserve discounts on the products they purchase. It is good to see that some sanity has been added with recent posts. The price you pay for a product is between you and your dealer, not the entire internet.

No wonder there are so few dealers left in the business. The good ones who may not have a cash flow problem have reps begging to carry their products. I have a pretty good idea (but not intimate knowledge) of what it takes to run a high end shop.

If you are going to be a meaningful player you better be ready to carry over a million in inventory on your books. You better be ready to fly people for installations when you are the only regional dealer. You better be willing to risk taking trades for high ticket items. If you carry several lines you better have enough floor space and multiple rooms to properly display and demo that gear.
 
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