Why can you buy a car at dealer Invoice but audio

Taters,

Just keep in mind for Hi-End equipment the dealer paid 60% of MSRP plus shipping cost.

10% to 15% off on a single item ain't bad.

If the dealer is lucky he might make 5% to 10% after paying himself, or an employee, a wage plus other overhead costs.

If he gives you 20% off MSRP what does that leave him?

Now if you are buying a system then the dealer has more wiggle room.
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It's amazing the dealers only make 40%.
03-21-13: Taters

Taters,

They don't make 40%

From the remaining 40%

Deduct shipping cost.

Deduct overhead costs.
Rent,
utility bills,
Phone bill,
Yellow page ad,
liability insurance,
content fire insurance,
wages,
FICA taxes,
Unemployment insurance,
local, state, federal income taxes,
Health insurance?

The Banker? The dealer may have a line of credit with a bank. Manufactures require payment upfront before shipping product.

deduct discount to customer, if any?.....

Like I said the dealer is lucky if he makes 5% to 10% profit.

That means the manufacturers are making most of the money.

High quality parts aren't cheap....

In some cases there is middleman, the distributor, he also gets a cut.
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