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Why do they do this?

Me, I figure they know it's over priced. 

greywolf

You’re thinking about it too much. Usually it’s a shop or salesman. It’s dumb for them not to do it as any made money is better than money you didn’t make.  There are always discounts. Distributors and manufacturers tell shops there’s a no discount policy simply because for the sake of one shop potentially being mad another is selling cheaper and they’re potentially losing sale. But the thing is, the manufacturer and distributors don’t actually care about the shops as much as they claim to. They’re just catering to them and they get money from them right off the get go.  There are PLENTY of people online that carry same lines and sell them as “used” or “new models coming in” but they’re not.  Distributors tell shops they don’t like this but the fact of the matter is there are way more sales on used equipment and discounted online sales than there are in shops. If someone’s bringing in the money, let them do it

I don’t have a problem with this. When I’m actually in the market to BUY, I’ll contact the seller. When I’m just perusing for entertainment I’ll move on. About 6 months ago I had a thread asking advice regarding speaker/ component isolation. The rep for one of the products being discussed actually contacted me via PM based on what I posted. He asked me to “ make an offer “ which I did that was below list. It was accepted and I made a purchase. Since it involved 2 pieces , one for each speaker it shipped in 2 boxes each valued under the tariff threshold. He provided  follow up and installation support. I even received a phone call to specifically answer some of my questions. Overall an excellent purchase experience. Regards , Mike B. 

Second thought , as we’re all old 😆, do you remember “ This is a FAIR TRADE ITEM “ ? The dealer was extensively restricted to NEVER sell below list price. I remember when Loomis fishing rods were like this. The shop absolutely refused to discount the item. But if you bought say a reel and rod together they’d heavily discount the reel. About 10 years ago Gary Loomis sold the company to Shimano and all that stopped. 

My one experience is with a dealer selling a pair of demo speakers.  He wanted 2x the going rate.  He listed them regularly for 5 years, and then drop the price near going rate, and then they sold fairly quickly.

To the person expressing concerns about “slim profit margins”, I’ve been in on the financial side of manufacturing for more than four decades, and I can tell you without exaggeration that once it gets to the retailer there’ve been a few markups. Manufacturer to distributor, distributor to dealer, and sometimes more. Each adding to their “slice of the pie”. Roughly a 2X or more at each phase or step if averaged out over the entire transaction.

For EXAMPLE ONLY:
  - Manufacturing cost= $1,000 x 2 = 2,000 to the distributor
  - Distributor cost = $2,000 x 2 = $4,000 to the dealer
  - Dealer cost = $4,000 x 2 = $8,000 to the consumer


Again this is just rough averaging it across all parties, but in any case, you’ll never see the real numbers. There’s no obligation to tell you. Even if they did give you a number, it can’t be relied on, because just like scales of economies drives the manufacturer to dealer cost there’s also the deals they cut above and beyond for quantities. I guarantee you that at each level, those buying 100 vs those buying 1 or even 10 are paying a higher or lower price at each stage based on quantities commitment. Never mind other Incentives. They’ll all tell you that their profit margins are slim and that their barely making any money; that’s just sales and marketing talk.