What is the average dealer mark up?


What is an "average" mark up on quality or high end audio gear? I realize that there are many manufacturers who force dealers to hold this tight and not disclose, but surely without naming specific manufacturers there are some here that do in fact know the mark up.

Let the fun begin!
128x128badger_erich
Badger_erich

I have a very close friend who owns a high end brick and mortar retail audio store (remember those) he is kind enough to sell me his products at his dealer cost and has been doing that for decades so I know exactly whay he pays for his gear. 

Most electronics have a 40% markup, though not all. Some speakers have 50% but not all brands, some are still 40%. Cables can be a little higher depending on the name brand, usually 50% and he sells one name brand that has 60% markup but that is unusual. So, the answer to your question is 35% - 60% markup depending on the name brand. The problem is that they rarely do high volume. He may hit a home run one day and strike out the next day. Take into consideration, rent, salary’s for employees, insurance, taxes, etc and you soon realize he isn’t getting rich. There’s an old joke in high end audio that asks how do you make a million dollars in high end audio, you start with 2 million dollars. He does it because he loves it, which in my opinion, is the right reason to own a high end audio store!  Take care and stay safe.

Scot
I agree with your comments on Tekton.  But did you ever feel guilty paying your friend just 5% above cost?  Must have been a really good friend.
I think we need a moratorium on this tired joke :-)

There’s an old joke in high end audio that asks how do you make a million dollars in high end audio, you start with 2 million dollars.