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Negotiating Price with Dealers?

Darren L said:
Nothing at all wrong with asking for a discount, bartering or negotiating a deal especially on a high value item, it's maybe not appropriate at Tescos but I'm sure there's none of us including the various hifi dealers wouldn't have a go if buying a car or motorbike whether new or secondhand.
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This;

You don't ask you don't get. :)
 
Yesterday I went to Audio T in Portsmouth, a store I've used on and off since it was Jeffrey's HiFi in the 90s. The reason for my visit was to a/b the Audiolab 9000CDT against my 6000CDT to see if it stood up as a worthwhile upgrade. The sales manager greeted me, made me a coffee and spent a good 90 minutes with me acting as DJ for my selection of CDs and switching machines. We even managed to make it a blind audition as the kit rack was behind me and I covered my ears during player changes (different loading sounds as slot Vs draw). The outcome of this audition.....
I came away with their demo 9000CDT for a home audition, I asked if they had stock should I decide to go for one (I'd already told him what alternives/options I was considering inc used CDPs/CDTs) he said no that was the only one they had.
However if I wanted one then he was sure he could come up with a mutually acceptable price for it as open box/ex-dem.
At no time did I ask for a discount, it was offered freely, he could have simply said it would take a couple of days to get one in once I decided to pull the trigger.
So I believe that there's enough fat in the margins but it depends very much on the honesty, openness and attitude of the buyer, as to whether a discount is offered freely or has to be cajoled from the seller.

Personally I don't tend to push things too much if at all when buying new kit from a bricks and mortar dealer (a rare occurance).
However when it comes to buying used kit from a large seller then I'm all up for haggling and am usually successful.
 
Last time I did the maths on 10% discount on a £1000 was a £100 and if 30% is our profit that means £200 is what we would achieve Less 20% vat of course which equates to £160
And at this point doesn’t take into consideration day to day running costs
 
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Never bothered with dealers so I wouldn't know, I've always bought second hand and I value trying something in my system and room rather than with some random kit in an unknown room. Only thing I buy new are carts and again they're just a punt.
 
When I couldn’t afford a decent HiFi I literally spent days at Grahams when they were in Pentonville Road and had toasters next to the Naim kit. I was completely open that I couldn’t afford any of it but they didn’t seem to mind. (For all I know it was “oh god him again” every time).

They got me in the end, and you might argue that was their game but if so it was a very long one with no guarantees. Also, despite being the archetypal Linn/Naim dealer they were always excited to show something different. I remember extensively listening to Musical Fidelity’s first preamp and Pink Triangle deck. When the time came, they were keen for me to try the original AE1s and that’s what I ended up with.

I never ask for a discount for a new item if a dealer has gone to some trouble, no longer ever ask for a dem unless I have a strong intention to buy. If a dealer is selling a trade-in I know they want rid of then I’ll haggle. I have a few friends in the industry so that’s different. I do look for deals on the internet and purchase second hand.
 
Midlandaudiox said:
Last time I I did the maths on 10% discount on a £1000 was a £100 and if 30% is our profit that means £200 is what we would achieve Less 20% vat of course which equates to £160
And at this point doesn’t take into consideration day to day running costs
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Your main problem is that no one gives a damn about your profitability. You are just one of a few ways of buying Hifi equipment and most end users want the best stuff available at the lowest price. All supply chains have to be competitive in order to survive.

The dynamics of the Hifi industry is that it tends to appeal to those over 50 and most of them are just not prepared to pay high prices for something that will end up as landfill after a few years of use. Therefore you are competing for the custom of a group who will end up buying older used equipment that sounds just as good as the new stuff, is easily repaired and will probably see them out.

I have a second system in my dining room which is a Naim 32.5/Hicap/250/SBLs and it sounds brilliant and is easily fixed if something goes wrong. I cannot see myself ever replacing a single item within that lot. My main system is a Naim 52/300/Shahinian Arc speakers which sounds good and so far has never needed any attention.

I did recently buy a complete new system as recommended by Richer Sounds which was a Sonos amp/Dali Oberon1 speakers for my villa in Spain. The cost of that lot came to just £999.00, it sounds OK but the main worry is that the amp will have a limited life and end up in landfill.

If I had my time over again, I should have bought another good quality used system and shipped it over to Spain.

So I am one of your potential customers but the simple truth is that I have no wish nor need for the latest model and I cannot even remember the last time I walked into a dealer. I doubt if I ever will.

Basically you are selling to a cost conscious and shrinking market and that is not a good one to be in.
 
I just don't understand this discussion.

Look, life is negotiation - not just with your customer or dealer but with your kids, parents, bosses, clients, partner, etc.

I think it's fair game to negotiate with your dealer, just be polite and reasonable. It's up to him to give you a discount or something else or not. He doesn't have to, and you can decide whether to deal or not.
 
Midlandaudiox said:
Last time I did the maths on 10% discount on a £1000 was a £100 and if 30% is our profit that means £200 is what we would achieve Less 20% vat of course which equates to £160
And at this point doesn’t take into consideration day to day running costs
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If that's a straight sale over the phone or by email that equates to £160 for about 10 or 15 mins 'work', not bad by all accounts.
 
Some tightwads on here. I don’t ask for discounts on new boxed equipment or stuff I’ve taken home to try. Supporting your dealer is more advantageous in the long run especially if you need their help down the road. Quid pro quo.
 
I think the importance of dealers has reduced over the years. I’ve had mixed experiences with dealers, including some pretty shoddy ones. Undoubtedly, there are some decent ones around but not many now. I prefer to make my deals across the internet.
 
colasblue said:
No I worked PT in a hi fi shop as as student. the 30/40/30 deal suggested was correct for imported budget (or budget +) kit in the 80's, but the BADA dealers wanted a lot more.

Consider that a supermarket has a 15% markup. Huge footfall, everybody in the country spends £50 a week at least. I spend over £100, well off family of four £400!

Bigger shop OK but how much footfall does a highstreet HiFi retailer get and how much do people spend.

Employing two blokes and renting one prime retail unit is costing you (net) at least £3k per week (even if they're pretty poorly paid) plus the cost of financing whatever dem kit you have! You have to add 20% VAT to that and charge it to your customer. Go figure!

I can see that a second user dealer in high end equipment with no retail presence can manage on 30% but a new equipment retailer supporting a shop, demo items in stock and staff would struggle.

When Keith (Purite) was here he openly admitted that he didn't actually own a lot of his dem stock and that can obviously reduce overheads significantly but he still has to run a shop.

Be under no illusions - I don't begrudge dealers a living - they're a valuable resource and if we don't buy any new kit they won't be there in the future. If you want the latest "state of the art" it's going to cost you.

The trouble is the last time I bought into that (in the Hi Fi world) I ended up with a Tag McLaren DVD32R and Chord DAC64 feeding a 72/Hi/250/SBL's which rapidly morphed into an 82/2xHi/135's/SBL's. Six grand up against the wall in less than two years. I was in industry earning pretty well in those days and some people drop a lot less on cars so not too upset really.

I was actually able to enjoy listening to CD's for the first time in my life which is good, but the equipment was rapidly obsoleted and (in the case of the DVD32R expensively) unreliable which is bad!

I now own better equipment which in real terms cost 10% of the price.

My subsequent purchases have been largely pro audio or internet (been through the series of Benchmark DAC's to the Topping) lower markups and better value - not much better longevity really but at the price not so bad.

If and when the NBL's die I strongly suspect I'm going with a Genelec active pro system. Nuff said.
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I got burnt by Tag DVD32R as well, 5K down the drain !!! Also when it went belly up they didn't give any design details to anyone , so we couldn't get them repaired. Kevin the chap from Bicester tried but without schematics had no chance. Shame because I thought Udo and co. were making all the right noises in the sense of how modular the designs were and how future proof . Future proof my arse
 
PhilCTTE said:
I got burnt by Tag DVD32R as well, 5K down the drain !!! Also when it went belly up they didn't give any design details to anyone , so we couldn't get them repaired. Kevin the chap from Bicester tried but without schematics had no chance. Shame because I thought Udo and co. were making all the right noises in the sense of how modular the designs were and how future proof . Future proof my arse
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Kevin fully recapped last year my TAG DAC20 and It sounds glorious, possibly better than it did new!
 
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