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Reseller Margins - Page 2

post #16 of 27
you think of the voodoo in cable wire. I purchased a 15 ft ext with Canary cable and the best plugs total cost was 28.00 Yet Headroom is selling both Cardas and Dimarzio at ridiculous prices. The canary extension is like no ext at all adding no sonic signature or vail. Best extension I tried.
post #17 of 27
Thread Starter 
it just seems that if manufactures allows lower prices, alot more people are going to ditch their ipod headphones and get real ones.

i bought a pair of Bose on-ear headphones a while back. BestBuy in Canada had it for $250, this new online store had it for $110.
post #18 of 27
Good discussion. I will add one variable that is not often included in this type of discussion. Income taxes. Corporate income tax (C-Corp) in the USA averages 35% on net income. Assuming there is a net profit, this is paid at every level of the value chain. Starting with the manufacturer, then the distributor, then the retailer. And then you pay sales tax on top of that. Taxes are a cost of doing business, and its something that gets passed on to the consumer.
post #19 of 27
Quote:
Originally Posted by Georgl View Post
I forgot to write that this team worked for 2 years on it (12 people x 2 years x 100,000€/year wage = 2.4 mio. €)

We had this discussion before regarding the HD800. Final assembly takes 45min, that are about 50-150€ alone.

But aren't they going to pay those employees anyway? Whatever they are working on, the employees still get paid. IMO, to directly tie the price of a new pair of headphones or any other product to employee numbers and salaries is flawed.

If you wanted to use that same logic, any new automobile should be higher priced than previous ones and that isn't the case. Manufacturers try and justify their exorbitant prices by touting new designs and better materials but I think it's because it's a new and therefore better product. Too many people think that something new with a higher price tag just has to be better but that isn't always the case.
post #20 of 27
Typically the manufactoring costs (parts, labour, packaging and distribution) is 20% of the retail price. The pricepoint for an item is set within line of similar products - so when the hd650 was top of tne range, there was far to small a profit margin; with the new pricepoint being circa 1,000 €, more room for margins for everyone.
post #21 of 27
Well at Best Buy we get Wholesale + 5% on our discount...and here's what I've bought there...

Koss PortaPro: $59.99 retail, $17.64 discount
Sennheiser HD238: $99.99 retail, $29.41 discount
Sennheiser HD428: $79.99 retail, $26.88 discount
Klipsch Image S4: $79.99 retail, $10.93 discount
Shure SE210: $149.99 retail, $31.11 discount
Bose On-Ear TriPort: $189.99 retail, $61.66 discount

So mark up is pretty huge on headphones...what surprised me was how cheap the Klipsch Image S4 and the Shure SE210s actually are...considering both seem high quality made. But I mean, it's highway robbery as far as headphones go with mark up and margin. Keep in mind, these prices are still 5% on top of wholesale cost.
post #22 of 27
Thread Starter 
Quote:
Originally Posted by tribestros View Post
Well at Best Buy we get Wholesale + 5% on our discount...and here's what I've bought there...

Koss PortaPro: $59.99 retail, $17.64 discount
Sennheiser HD238: $99.99 retail, $29.41 discount
Sennheiser HD428: $79.99 retail, $26.88 discount
Klipsch Image S4: $79.99 retail, $10.93 discount
Shure SE210: $149.99 retail, $31.11 discount
Bose On-Ear TriPort: $189.99 retail, $61.66 discount

So mark up is pretty huge on headphones...what surprised me was how cheap the Klipsch Image S4 and the Shure SE210s actually are...considering both seem high quality made. But I mean, it's highway robbery as far as headphones go with mark up and margin. Keep in mind, these prices are still 5% on top of wholesale cost.
Wow....thats is just the right piece of information i was looking for! especially Klipsch Image S4, i couldn't find their whole sale price anywhere. Is this the internal info from BestBuy? Can I get your position so I can quote you in my report? (this is for an university entrepreneurial course business plan, don't worry )

Also, anyone have any ideas on the market share of headphone companies in general? I mean, Apple's free white ear-buds is probably the market leader right now, just wondering if there are numbers that.
post #23 of 27
Quote:
Originally Posted by benn View Post
Also, anyone have any ideas on the market share of headphone companies in general? I mean, Apple's free white ear-buds is probably the market leader right now, just wondering if there are numbers that.
Given that (info from a couple of years ago, but ehh) Apple supposedly has a 70% share in the DAP market and that most iPod users use stock buds, I think it can be safely assumed that iBuds have at least 50% of the market share.

But then again, factoring in the lack of care people have for their headphones and the godawful build quality of said iBuds, the figure will likely drop to maybe 20-30%, if not less.

[it almost sounds scholarly. ]
post #24 of 27
Quote:
Originally Posted by benn View Post
Wow....thats is just the right piece of information i was looking for! especially Klipsch Image S4, i couldn't find their whole sale price anywhere. Is this the internal info from BestBuy? Can I get your position so I can quote you in my report? (this is for an university entrepreneurial course business plan, don't worry )
This is just stuff I've bought on my discount over the years...I can get the actual cost, if you'd like.

Oh, and I'm the Home Theater Admin.

Now, as far as the iBuds go, I doubt they dominate the market considering the majority of people don't buy them, considering they have years of good reputation when they were one of the first buds on the market and didn't sound half bad. (1G, 2G iPods) I'd say a good 75% of the time when I ask a customer if they would be interested in a new pair of headphones, they are perfectly satisfied with the iBuds.

I seriously doubt that the majority of people's whose iBuds break go out and replace them with a new pair. Most people I've talked to rant and rave about how bad they sound or how they won't stay in their ears, then end up upgrading to the Shure SE115 or the UE MetroFi...even the occasional Skullcandy or Sony is an improvement over the iBuds. They sound horrific and aren't built well at all.
post #25 of 27
Thread Starter 
Quote:
Originally Posted by tribestros View Post
This is just stuff I've bought on my discount over the years...I can get the actual cost, if you'd like.
If you can give me a longer list that would be even better.
Thanks a lot for all the help so far.
post #26 of 27
Well I have to be at work to access our stock program...and I don't work until Monday.
post #27 of 27
Now the question is: Can you get us those at those prices?
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