do you have music equipment channel experience?

[queenlives]

folks,

a friend of mine invested in a music equipment mfg some time back and is now reviewing its biz model. he's asked me for feedback on the following and since i lack experience in this particular area, i wondered if there are primers who do have this (or perhaps computer hardware) experience who would care to chime in ... any / all relevant feedback is welcome.

"when a dealer network is involved:

a. for a given list price, say $1000, what is the price the dealer pays?

b. for the same $1000 list price, is there a minimum advertised price, or
"street price"?

c. for that same $1000 list price computer, what is the international list price?

d. what does the international distributor pay for the $1000 list price product?"

thx in advance.
hal

 

[robr]

sounds like a question for turbo2go!!

When I used to buy expensive home audio gear (before wife/kids ).... stuff like Lexicon, Adcom, Parasound, B&K, Bryston, etc, I was told the markup was around 100% on most gear. I don't know if that's still the case today.

 

[Gofastguy]

I've been to a few business expos like NAMM (National Association of Music Muerchants), "Shot Show" in Vegas a few times, PGA show in Orlando when I worked for a DVD production/replication company. The deals were largely based on volume. The more a business that was done with the supplier, the better the pricing structure was. Take Walmart for instance, back in the day they bought "Realtree" products we produced by the truckload and got them dirt cheap. (BTW, carefull here, as Walmart has a policy that they can return any unsold merchansdise... Its almost as they work on a consignment basis.) I'm a musician and the times I've gone to the NAMM shows and talked to different companies, that seemed to be the case as well. The larger stores got the best deals. Most all had a minimum you had to buy to be a distributor of their products.
-Robert

 

[queenlives]

sounds like a question for turbo2go!!

When I used to buy expensive home audio gear (before wife/kids ).... stuff like Lexicon, Adcom, Parasound, B&K, Bryston, etc, I was told the markup was around 100% on most gear. I don't know if that's still the case today.

thx for the feedback, rob. i should have been more specific in that my friend's company mfg's equipment for the pro / sumer musician ... many top bands use their products in touring and studio work.

thx again for the feedback, much appreciated.

hal

 

[queenlives]

I've been to a few business expos like NAMM (National Association of Music Muerchants), "Shot Show" in Vegas a few times, PGA show in Orlando when I worked for a DVD production/replication company. The deals were largely based on volume. The more a business that was done with the supplier, the better the pricing structure was. Take Walmart for instance, back in the day they bought "Realtree" products we produced by the truckload and got them dirt cheap. (BTW, carefull here, as Walmart has a policy that they can return any unsold merchansdise... Its almost as they work on a consignment basis.) I'm a musician and the times I've gone to the NAMM shows and talked to different companies, that seemed to be the case as well. The larger stores got the best deals. Most all had a minimum you had to buy to be a distributor of their products.
-Robert

the for the info, robert ... my take is you're correct on all points thus far ... we're looking for specifics that people are successfully using with similar price point, buyer, etc.

thx again for the post, much appreciated.
hal