by GlassWolf » Sat Mar 18, 2006 8:11 am
keep in mind also that while sales people are on commission and working for spiffs, where certain products of the day earn them a bonus for selling that item, often times even if they cam bargain on a price, labor can't be bargained for installs, and a lot of products are fixed on price, or limited to the amount of bargaining to maintain their price point and exclusivity. Alpine for example did/does not allow greater than ten points variance from MSRP for anything.. so you won't see anyone offer more than 10% off the MSRP on a new Alpine product in a store.
Some companies like JL do the same thing, or demand MSRP for their products to avoid bottomfeeders from lowballing stores to save $2 on a $800 product.
Shops don't tend to make a lot of money because they don't sell products for much more than cost and overhead anyway. Also with the introduction of the internet it's gotten even harder to sell products, since nobody wants to pay retail and would rather risk the gray market for cheaper prices, then complain when labor rates are higher for carry-ins than they are for installing in-house purchased items.
The way shops pad their income to make ends meet is by selling the crap products like audiobahn and power craptastik at what seem to be cheap prices (what they buy this crap for is amazingly cheap) so be glad in a sense that shops sell this garbage, because the thousands of morons who buy this junk blindly are the ones lowering the overhead of the shop enough to offer you the good products at what's actually a lower price than it would cost you otherwise.
keep in mind also that while sales people are on commission and working for spiffs, where certain products of the day earn them a bonus for selling that item, often times even if they cam bargain on a price, labor can't be bargained for installs, and a lot of products are fixed on price, or limited to the amount of bargaining to maintain their price point and exclusivity. Alpine for example did/does not allow greater than ten points variance from MSRP for anything.. so you won't see anyone offer more than 10% off the MSRP on a new Alpine product in a store.
Some companies like JL do the same thing, or demand MSRP for their products to avoid bottomfeeders from lowballing stores to save $2 on a $800 product.
Shops don't tend to make a lot of money because they don't sell products for much more than cost and overhead anyway. Also with the introduction of the internet it's gotten even harder to sell products, since nobody wants to pay retail and would rather risk the gray market for cheaper prices, then complain when labor rates are higher for carry-ins than they are for installing in-house purchased items.
The way shops pad their income to make ends meet is by selling the crap products like audiobahn and power craptastik at what seem to be cheap prices (what they buy this crap for is amazingly cheap) so be glad in a sense that shops sell this garbage, because the thousands of morons who buy this junk blindly are the ones lowering the overhead of the shop enough to offer you the good products at what's actually a lower price than it would cost you otherwise.