Can someone Explain this to me?

[Coach]

I see many Internet stores that have different car audio equipment. I know places like crutchfield and best buy are authorized Internet dealers. How do the other guys who are not authorized sell the stuff for so cheap or get it at all? They are making a profit as well so why the huge price difference? I understand the concept of warranties and service, but it make no sense to me. If I go with store X I can save $2000 on my system. How on Earth does that happen. Either store X is turning a small profit or big "authorized" dealer is turning a huge profit. Help me understand this. :rolleyes:

[USCFAN]

You have to be careful of refurbished equipment. Also depending upon the shop their labor cost may be different because of the quality of technicians. Guys with lots of experience and who are good at what they do usually command higher salaries at the better shops...

[Tom Brown]

A lot of stuff on the Internet, particularly stuff from the New York area, is not meant for the American market and isn't supposed to be sold here.
I picked up a Samsung Yepp for less than 1/2 price but it came in a zip lock bag with a manual and accessories wrapped up in a baggie. All the stuff was there and it worked fine. It was even knew but it was stamped refurbished. That is because there is no warrantee on it. It was meant for the Asian market. I've seen the same unit at Best Buy in a huge bubble pack. ... so I saved over 100 bucks on packaging and yielded any warrantee.

[Coach]

I am talking about a place like www.ikesound.com
I bought a head unit there about 4 years ago brand new in the original packaging. It was $150 cheaper but they state they are not an authorized dealer. So if something goes wrong then you send it back to them and they will replace it for 1 year.
I have been pricing out many items and can save over $2000 by shopping on their site again. The thing is they are not an authorized dealer. They are out of Florida I believe. I know they have been in bussiness for over 4 years now.
I just want to know how or why they can sell the same items for hundreds of dollars cheaper than places like crutchfield or best buy.

[SnoopJonnyJon]

I really don't know how they do it, but there sure can be an amazing difference. Just last month I bought a new stereo (deck, amp and subs). I thought I would try to support the local businesses and buy stuff in town. So I started pricing stuff out and I could get the same stuff off eBay for $1000 or spend $3000 locally. I'm into supoorting local small business... but I am not losing 3 weeks pay to do so...

[kcvega]

I asked one of the ebay sellers I bought from. He just told me to be an authorized dealer they have to price it a certain amount. The non authorized dealers can price whatever they want and get no factory support or warranty.

[Coach]

I asked one of the ebay sellers I bought from. He just told me to be an authorized dealer they have to price it a certain amount. The non authorized dealers can price whatever they want and get no factory support or warranty.
That is what I would think, but then why would they sell their products to a non-authorized dealer? I know companies like Oakley only sell their products to authorized dealers. If someone is selling Oakleys below what Oakley has set the price to be they no longer will let that dealer sell their stuff.

[kcvega]

To sell more products is what I suppose.

[Jyruiz]

Some authorized stores have a webstore with a different name, they buy the merchandise under the authorized name and sell on there webstore as well as ther regular store. That is why you have to send the merchandise back to them if it needs warranty repair, if the company finds out by tracking the serial #, they will loose there contract with them. Also, some webstores have an agreement with authorized sellers, the authorized seller buys the merchandise for them, and the unauthorized seller sells it thru the web.

[h2oski2fast]

That is what I would think, but then why would they sell their products to a non-authorized dealer? I know companies like Oakley only sell their products to authorized dealers. If someone is selling Oakleys below what Oakley has set the price to be they no longer will let that dealer sell their stuff.
Manufactures don't sell to non-authorized dealers. It's a well know fact in the electronics industry that things are bought "sideways", meaning that it was originally purchased by an authorized dealer and then sold by that dealer to a non-authorized dealer for a small mark up. The authorized dealer will get a bigger discount do to volume. Now a days you won't see that big of difference in the price of head units (unless it's the top of the line) do in part that there is not a huge mark up on them to begin with. It's also a well know fact in the car audio industry that consumers are only interested in price and not service (case in point is this thread). You can go out and buy the equipment over the internet, but someone has to install it. The consumer takes it to a shop and has it installed, if it breaks then he has to take it back and have it uninstalled....... then has to send it to the place of purchase, then wait for it to be returned....... then take it back and have reinstalled (at a price)...... Where as if you bought it from the local store the install is ussaully less and if there is a problem it is ussually handled in one visit with no incured cost.
And read the fine print, many times if the unit was not installed by a reputable shop then the warrantee is normally 30 or 60 days from purchase. You'd be suprised how easy it is to tell when the product was not installed by a professional.

['78 gt boat]

Manufactures don't sell to non-authorized dealers. It's a well know fact in the electronics industry that things are bought "sideways", meaning that it was originally purchased by an authorized dealer and then sold by that dealer to a non-authorized dealer for a small mark up. The authorized dealer will get a bigger discount do to volume. Now a days you won't see that big of difference in the price of head units (unless it's the top of the line) do in part that there is not a huge mark up on them to begin with. It's also a well know fact in the car audio industry that consumers are only interested in price and not service (case in point is this thread). You can go out and buy the equipment over the internet, but someone has to install it. The consumer takes it to a shop and has it installed, if it breaks then he has to take it back and have it uninstalled....... then has to send it to the place of purchase, then wait for it to be returned....... then take it back and have reinstalled (at a price)...... Where as if you bought it from the local store the install is ussaully less and if there is a problem it is ussually handled in one visit with no incured cost.
And read the fine print, many times if the unit was not installed by a reputable shop then the warrantee is normally 30 or 60 days from purchase. You'd be suprised how easy it is to tell when the product was not installed by a professional.
Ok, let me give a little insight on this topic since I happen to be a car audio buyer for a large retailer. Let's say I buy products from a Vendor.... Let's say Clarion for instance. I buy the gear based on a cost that I have negotiated which fall under my corporations terms. I am given a MAP price from that vendor which means I cannot advertise the item lower than there MAP (Minimum Advertised Price) price. This means places like Crutchfield, Fry's Electronics, Best Buy, Circuit City and so on cannot put in there ad a price lower than map so everyone has an equal chance to sell it. Now.... there are distributors who will sell this same item like was said "Sideways" to a company who is not an authorized dealer and that company will put it online and sell it for a lower price. The reason why they say they will replace it up yo one year is because the Manufacturer ie: Clarion will not warranty any item purchased from a non authorized dealer. Now car audio as a whole has good margins or profit in it, usually around 35% and up depending on the product so there are people who don't mind selling it for 5-10% above there cost or if they are dumping it will actually loose money on the item to get sales. All in all it does not matter to most consumers because the money that can sometimes be saved is worth the risk. I myself being in the electronics retail for so long can say I have a better piece of mind buying from a company I can go directly to if I have a problem instead of having to try and e-mail or call someone for help. I hope this information was somewhat helpfull and not too boring. Just my .02 :crossx: :crossx: :crossx:

[Coach]

Ok, let me give a little insight on this topic since I happen to be a car audio buyer for a large retailer. Let's say I buy products from a Vendor.... Let's say Clarion for instance. I buy the gear based on a cost that I have negotiated which fall under my corporations terms. I am given a MAP price from that vendor which means I cannot advertise the item lower than there MAP (Minimum Advertised Price) price. This means places like Crutchfield, Fry's Electronics, Best Buy, Circuit City and so on cannot put in there ad a price lower than map so everyone has an equal chance to sell it. Now.... there are distributors who will sell this same item like was said "Sideways" to a company who is not an authorized dealer and that company will put it online and sell it for a lower price. The reason why they say they will replace it up yo one year is because the Manufacturer ie: Clarion will not warranty any item purchased from a non authorized dealer. Now car audio as a whole has good margins or profit in it, usually around 35% and up depending on the product so there are people who don't mind selling it for 5-10% above there cost or if they are dumping it will actually loose money on the item to get sales. All in all it does not matter to most consumers because the money that can sometimes be saved is worth the risk. I myself being in the electronics retail for so long can say I have a better piece of mind buying from a company I can go directly to if I have a problem instead of having to try and e-mail or call someone for help. I hope this information was somewhat helpfull and not too boring. Just my .02 :crossx: :crossx: :crossx:
78-
Good Stuff to know. Now knowing this can you the Vendor negoitate a lower price on your equipment if it is not Advertised? Say I want a HU that is $400 but know I can get if for $300 on line would you be willing to sell it for $350 or does the MAP dictate the lowest price you can sell it? I don't mind paying more for the equipement and install, but a $2000 difference in price of the equipment seems like a rediculous mark up. If it all comes out in the wash after the install then it might not be a problem, but if install costs are about the same whether you by the stuff from your local shop or online then $2000 is worth the risk and a possible hassle. If the difference was $750 or less then I would go with the local shop no questions asked.

['78 gt boat]

78-
Good Stuff to know. Now knowing this can you the Vendor negoitate a lower price on your equipment if it is not Advertised? Say I want a HU that is $400 but know I can get if for $300 on line would you be willing to sell it for $350 or does the MAP dictate the lowest price you can sell it? I don't mind paying more for the equipement and install, but a $2000 difference in price of the equipment seems like a rediculous mark up. If it all comes out in the wash after the install then it might not be a problem, but if install costs are about the same whether you by the stuff from your local shop or online then $2000 is worth the risk and a possible hassle. If the difference was $750 or less then I would go with the local shop no questions asked.
I negotiate price based on what margins I want to see. As I said before there is an average margin for the big box retailers out there and then there is margins for the what I call boutique shops. I have seen some small shops running 65% or higher on profit cause it costs them more to run there little shops. A big box retailer has other areas to help bring in money ie: computers, home theater, tv's, and other stuff like that. You have more of a chance to negotiate with a small shop rather than a big box. Like you said if it's a difference of 2k for just the gear it may be worth it to take the risk.

[ROZ]

12v products generally have more gross profit than any other sales item; labor is the exception.
As far as an average markup, kinda, but not really. Entry level products have a lot less margin than an expensive item. 1700.00 plasma tv has about 50.00 profit, while a 5000.00 may have a 1200.00 profit(depending on mfg and features).
An entry level Alpine cd has about 35.00 profit, while a more expensive alpine unit may have as much as 150.00...
Bottom line is that you'll save more money on a more expensive item.
I use to tell peeps to purchase to purchase better items from me spending the same amount of money..
Other than that, H20Ski has got it :D