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Why would a dealer sell speakers to me at their net cost?

post #1 of 4
Thread Starter 

Hello all, I recently made a WTB post on an audio forum for some speakers. I got a reply from an authorized dealer (I triple checked) saying they would sell me the speakers I wanted, new, with full warranty, at their net plus shipping and paypal fees. It works out to about 65% of msrp plus shipping/paypal. How is it worth it for them to sell to me for apparently no profit? 

 

My first thoughts were these guys aren't really a dealer, stolen goods, damaged product, etc. but I looked the place up and it actually exists, is an authorized dealer and I can't find anything negative about them at all. I'm stumped. Can it somehow be worth it to just move inventory at nominal profit? Is hifi standard profit margin just gigantic and they're still making some $ at this reduced rate?

 

edit - The more I think about it I guess that discount isn't as crazy as I thought.


Edited by mrip541 - 3/24/14 at 1:13pm
post #2 of 4

Maybe...

- it wasn't selling in the shop and they just want to get rid of it/open up space for profit making inventory

- there's a new model coming out that will honk the prices of the existing model

- it's a factory b-stock

- it's a return

- they're still making a slight profit on it

 

Who knows... it could be any number of things, but if it's what you want at a good price and the dealer checks out, then go for it.

post #3 of 4
In retail it's just a saying. But............it's usually a question....."What if I could sell em to you at cost?"



Get the price and see how many more retailers can match it? Then you'll know how good a deal it is.


I'm sure it is still a good deal for the seller. If it is cost they made money on the ones before it in the year. Who cares.


Remember too that business is all about cash flow and that is why things even get sold at a loss or break even point.
post #4 of 4
Thread Starter 
Quote:
Originally Posted by Redcarmoose View Post

In retail it's just a saying. But............it's usually a question....."What if I could sell em to you at cost?"

 

 

Roger...

I'll keep lookin around.

 

Thanks guys.


Edited by mrip541 - 3/24/14 at 1:54pm
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