2. misc-audio
  3. 1354682622

Why are dealers so scared to sell product out of

state. I was calling a few dealers out of state looking for better pricing on a product. Another reason I'm trying to buy out of state is to save the high sales tax in Southern California. A couple of dealers I talked to refused to sell product out of state.They said they have an agreement with the distributor not to sell out of state. It's amazing how distributors have such a hold on the retailer. High-end audio Isn't exactly setting the world on fire yet they have all these restrictions for the retailer. I can buy a rolex watch out of state or even a ferrari. Why can't I buy audio equipment out of state if I choose to? Yes, I know there are mail order companies that carry lines they can sell across state lines. The problem is these firms sell at list price and I'm not going to pay list for anything including audio equipment.
taters

Showing 3 responses by br3098

br3098
969 posts
 
Taters wrote: "Why are dealers so scared to sell product out of state..."

Spoken like a true consumer, i.e. one who has no idea of the competitive pressures and costs associated with being an audio dealer in today's web economy. Why don't you spend a few extra dollars for sales tax (which I assure you, CA desperately needs) and support a local audio dealer?

FYI - although almost no one does so, LEGALLY you are obligated to pay use tax in CA on gear that you purchase online from out of state. This is the Just so you know...
br3098
969 posts
 
I have a couple of questions for all of you guys who are buying all of your expensive audio gear on the web:
1- Just where did you go to hear this gear before you decided to buy it, or are the completely accurate and unbiased opinions on Audiogon and other sites good enough?
2- What do you do when a piece of gear needs repair or (horrors!) replacement, and the manufacturer tells you to send your gear to a dealer for service?

The OP claimed that he was looking for a dealer out of state in order to avoid paying local sales tax. I find that sad, personally. Looking for a better price is a different matter. Brick and mortar dealers need to be competitive, but so do online and remote dealers. Frankly, most of the dealers in the L.A. area that I know will cut a deal on gear if that they have a serious buyer, which is a hard thing to judge in the strange and exciting world of audiophile games.
br3098
969 posts
 
I will use Jaxwired's response as an example: "...Since I buy low, I can sell for little loss."

So as I see it, you want to buy new gear for (close to) the price of used, depreciated gear. There is nothing wrong with that, except that this model does not allow any operating margin for B&M stores to operate. Maybe you are OK with that; I am not.

I buy and sell a lot of gear, mostly used. I find that most anything I am looking for is available in good condition and at a substantial discount on the used market. But when I do buy new gear, I insist on a fair deal from the dealer - fair for both me and the dealer. And I prefer to buy locally, even if that means that I have to pay sales taxes. In my case and yours, it's the cost of living in sunny California.
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