Alon Wolf- why horns for his SOTA?
- Thread starter hvbias
- Start date
maybe mass market but not high end. I've looked at dealer pricing schedules and the vast majority of gear are 40 point margins, some cable cos. like Cardas have lower margins around 40 points.
I wanted to understand your math, so we're not talking about small margins at $600k. Anyway margins are very relative to the product, 30% of $300k is a lot more money than 50% of $20k. Good for them whatever they make!
OP's original question was why horns for SOTA. The only way you'll understand is if you get and hear a pair of horn speakers done right, nothing else will compare. Magico's not the only one, JBL's best speakers have always been and are still horns. Kharma's statement speaker was the million dollar Enigma. There are vintage horn systems that are still unmatched at any price by other designs today, its just a more natural way to reproduce sound efficiently.
david
Stereo has it correct. Mercedes Benz cost factors on the Maybachs were much greater than what the end user paid. Simple terms: Mercedes was losing a LOT of $$$ on every Maybach sold.
Statement items can be very expensive to all involved.
zz.
No. If a high end product (amplifiers, sources, speakers) is sold at MRSP of 100, the distributor typically pays it between 40 and 52. And much less for most cable companies. I have seen dealer price lists for different OEMs.
In mass market retail (Best Buy etc), retail margin are much lower.... but product rotation on the shelves is much higher!
Yes, but at 30% GM you don't cover your opex..... and you sell much more 20k speakers than 600k one!
If you want to get rich be Bose.
I prefer Beats by Dre. In and out within a few years and cleared $200M personally. Dre Day pay day...
No You are way wrong
A $1000 list amp will cost the dealer $600. There typically will also be a 3 to 5% discount if promptly paid. So at best the dealer has $570 into that $1000 amp........
And then there is freight on that $1000 amp. More than likely, unless the dealer is placing an order for many amps, he will be paying freight to get it to him. Freight on a basic stereo amp is somewhere around $25 with insurance. So now the dealer has $595 total into the amp he MIGHT be able to sell at full retail of $1000. In my book, that's 45%, max.....
Need to make sure we are measuring like with like. Stereo specifically mentions distributor as like a few of us, we live outside of the USA.
There is a difference between distributor and dealer. The distributor then sells to the dealer in overseas markets or in the USA for imported goods. That is generally why imported hifi costs a LOT more than in the home country as you are paying 2 margins, not just the dealer margin.
Not everything revolves around the USA.
What XV said. Abroad, it's a rock and a hard place situation particularly in countries with "porous" import controls. If we don't keep things close to the prices at the country of origin, basically just pass the added costs straight on, people will buy gray and smuggle 'em. So, we can't just add on the cost. While the gray buyers will have no support, that doesn't seem to faze them much. Market absorption cap is a beeyotch.
thank you. I didn't want to get into it with Stereo but it would help if he would identify where in the world he is as the USA model is vastly different.
No way! By the time I get my hands on it, I'd have shelled out around $740.00. The government makes more money than we do as individual incorporators and we have only 3 major stockholders. The other two are nominal.
I don't mind if you don't want to believe me... I have seen price lists. To summarize ( for typical components such as amps or speakers, not for cables):
- for dealers, your estimate is on the low side. For most brands, dealers typically pay 500 to 550 on a 1000 amp. and they pay shipment cost on the top.
- international distributors pay 380 to 470 + shipment cost. Depends on the brand and on the product in the range.
For info, if you are well connected, you can buy in my region pretty much any Wilson or Tidal at very little above half retail price.... and I don't believe distributors are working for free.
Really? I've been contacted a few times by people from Taipei attempting to buy from us because they said our street price is lower than theirs (for our brands anyway and not Wilson or Tidal). In any case they just might have a lot of stock they need to move. You see that kind of price drop everywhere in the world whenever a newer model is going to market. It's a great time to buy if you don't mind not having the "latest and greatest".
Taipei street prices are high because of high import taxes
The Tidal /Wilson discounts I mentioned were for another country in the region, not Taiwan (I don't want the distributor to have problems with their supplier, so I prefer not to be more specific). And yes, you get very different discount on different brands, but 40%+ is far from being unusual. Some OEM control better pricing policy of their distributors... I personally don't think it is a good sign that a brand needs to discount 50% to be able to sell!
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