What do you guys think of buying online vs. getting your stuff at an "authorized" shop? There's seems to be a HUGE price discrepancy between the two...

 

It is no secret that most car audio has at least a 100% markup.

A lot of the suppliers will not service your equipment if something goes wrong with it. The manufactures will also void your warranty. If possible get to know someone that works at a store. See if they can come close to the prices you find on the internet. Most will play ball if you know what you are doing. You need to support your local stores or they will go away or stop carrying a certain product. My $.02

 

Okay, working at on on-line car stereo store I can add a little info. *Most* manufacturers are good about honoring their warranty even when purchased through an on line retailer. Some, (our nemesis is Rockford Fosgate) are very difficult. On cannot comment for other on line stores, but we take care of our customer even with companies that will not honor their warrenty. Rather than going through the manufacturer, we give it to a local authorized distributor who in turn sends it to the manufacturer for repair.

The ironic part is that the high and mighty manufacturers that say they will not honor their warranty for internet purchased items, but they actually push their stuff on us! There is SO much more product out there since internet retailers have become established. These guys need to meet quotas and make numbers and that just doesn't happen if they distribute to ONLY local retailers. I've been in the conversations....it's funny.

As you can see I have a bone to pick with the manufacturers who refuse to honor their warranty. Its pretty messed up when you think about it. Its similar to those big camera shops that can sell you a camera cheap, OR with the warranty for like an additional $100.00.

My advice is to buy over the net because of the money you'll save. However check with the company your buying from to make sure that they can offer you a repair/exchange in the event something is defective. Again, this is a policy we have always had.

Carl

 

nice one way biased opinion

it all depends on what you want to do...

do you want service?
very very very few internet retailer will ever be able to do that for you. period. no excuses.

need help installing it, when you are on the west coast and they are on the east? they are closed at 3.
what if it doesnt work. you have to PAY out of your pocket to have them ship it back to you.

warranty?
some places will cover you and some wont
also remember that not all things that break, will be covered under the mfg warranty. most local retailers want your business and will cover you if something does break

install services?
internet? no
local? yes

up top someone said that car audio works on 100% mark up...
come back to earth buddy, it aint that high

intenet retailer will most likely start fading out. any company needs to make profit to support their company and customers for better service. when you start cutting profit margins (whoaring out the product on the net, and thinking you will make up for it in volume) you will eventualy have to start cutting corners for the fact that you arent making any money

what if you want to listen to some speakers or place with the deck before you buy it.
how can you do that on the net

so, you are going to go to the local retailer, listen to what you need to, waste the salespersons time and further stretch out their resources, then buy it on the net

 

The reason I have turned to the internet......my local dealers/installers are not the brightest bulbs on the tree....

First I went into two local shops asking for an IASCA CD to make kickpanels....they all looked at me like I had a third nipple growing in the middle of my forehead.

Then one shop tried to sell me a D4 IDMAX for my 4 ohm mono stable 2 channel amp!?!? Mind you they were authorized dealers on both the sub and the amp....shouldn't they know better.

I find I get more honest and reliable information on the internet. To me the motivation isn't fully by pricing...I install my own gear, so besides the warranty, a local shop does little to nothing for me. Personally, I find paying for an install cheating - your system really isn't "yours" if you just paid some shop to put it in....anyone can do that. Mastering installation techniques and learning about audio is where it's at...that's the fun in all of it....at least for me.

One of my biggest gripes is in car audio competitions...some guy forks over a ton of cash to have a shop install a system...then he goes to the competitions, walks away with a fat trophy and some title...now, who won, the consumer or the shop. That's why I'm a big proponent of installing yourself.

In my case, I have a local shop that is a dealer of a brand I want, but they don't stock anything....it's impossible for me to audition anything. The only way taht you would know they were a dealer is by either looking them up on the net, or the fact that I remembered "back in the day" (about 7 years ago) they carried some of their stuff....so I go back...gues what the same pair drivers are on display from 7 years ago!!!! And we are talking about a MAJOR player in high end audio.

Generally, all the shops around here (with a few exceptions) carry brands that I would never think of, and if they do have something that I want....components for example....they are not even installed correctly on the "sound board" and they are only powered by a head unit.....what's the point.

I still support local shops with some necessary install things....grille cloth (you would be surprised how many shops complete "custom installs" without this stuff), carpet, wires, etc. As for big ticket items, the internet has the pricing and selection I need.

On the other hand, if you don't know what you are doing, or you don't have the time or tools to install your gear properly......RESEARCH to find the proper shop. Can't stress that enough...even if you have to drive 1 or more hours to get there...it will be worth it if you find the right place.


[Modified by rcurley55, 10:18 AM 9/17/2002]

 

HA! What do JL Audio 12w6's retail for?
I paid $140 a piece.

What did the soundstream exact 6.3 retail for?
I paid $200

What did the 10.2 and picasso retail for?
I paid $800 for the both directly from Soundstream.

Recent example How much is the Alpine S634
I was getting them for $190

JL Audio XR650CXI speakers are retailing for $300 around my area.
I will purchase these for $160

How much profit do you think are in those stereo's with LCD displays and DVD's? Go into a store and say your thinking of buying one. Count how many salesman start swarming around you.

Yes it is no secret that there is a huge mark up on car stereo equipment. If you don't believe it then you have been trained well by you local car stereo shop. The reason the manufactures don't like internet retailers is because the competition is based on price alone. These prices are close to wholsale prices. They don't want there product marketed this way. The online retailers that sell near retail value are usually always supported by the manufacturer.

Very good advice, this is where your local dealer helps the vast majority of the people. You spend time doing research and learning what is good and bad. So you get to enjoy the benifits but it also cost you your time. Most people want to plunk down a chunk of cash and be done with it. Its like this for everything you do in life, the person who takes the time to learn will be better off then the others.

If you really know what you are doing its not hard to get a local retailers to match the internet prices. So you can get the best of both worlds.




[Modified by nsxxtreme, 2:09 PM 9/17/2002]

 

Okay time to add fuel to the fire.....

I am a commisioned based mobile salesperson...period. I pay all my bills by selling car stereo. Now to address a few points. The markup on car audio ranges from
39% to 50% depending on product quality and what the dealer was able to negociate (sp) with the manufacture. No more no less..with an avg of 44%. this is all based on hom many times a product will turn ( sell). Someone quoted prices on here that were really good...but if they were bought recently with the exception of the jl and alpine product they were older models....you should get a price break on product that was left over and are wasting space on my shelf.

As for internet sales.....I many times will honor the advertised price within reason...
I look at the price offered..Now remember they want to make money too and they do at an avg of 38% to 46% margin....Hell I'll clerk the sale and you go home thinking you beat me up on price....nothing can be farther from the truth. In reality I took money from the internet guy and I just became your local hookup for audio.
Funny how that works. Now if you bring a quote that is so WAY off....I'm gonna tell you it is and why...I want in reality to help you get the best for your money..I have nothing to gain by scewing you over,but if I give you the straight story..you will come to me with all your questions and tell your pals as well. Makes sense huh. As for the new decks with dvd and video built in ...that is some of the worst markup ever.....33% to 37% is the avg.....it all depends on quality of product.

With the advent of the Internet...we have become better,more informed consumers...the manufactures and retailers alike know this..use that knowlege to get the best service and value possible.

 

There is no fire this is usefull information

The markup I am talking about is not the *will sell at price*. Everyone knows you can talk the salesman down. We are not talking about what the product goes on sale for either. We are talking about normal everyday full retail value. Go to http://www.Crutchfield.com compare prices there with what you find on the internet. They are fully supported by the manufacturers. Just because you are buying localy also doesn't mean you are buying from an authorized dealer, they are a lot of businesses that deal in gray market goods.

I know where we may be off in thinking. You all are probably taking the price off the selling price. I am going the other direction because I know what wholesale is. It takes a $150 to get a $150 wholesale item up to $300 this is 100% markup. For every dollar invested you get a two dollars in return.




[Modified by nsxxtreme, 1:25 PM 9/18/2002]

 

Very valid points...but mine were based off of wholesale or 'cost'.....the price that the dealer was able to purchase the product at from either the distibutor or manufacture.....many shops go through a rep or distributor...then they add shipping,advertising and other related costs to that price. Its common biz sense.
Like it was stated before...You cant ***** products and expect to live by volume alone....Crutchfield is not stupid....there products are priced no different than other retailers now....it was not always like that...they built a following...they build what we call the BRAND...they have loyal customers..who will pay the same price that they could get locally because of their past experience with the company.

And like I stated before this is all about makin' money...the more above sell a product above your intial costs the more profitable you are.

 

Profit margins are a different story. Local stores also have to pay the salesman to sell the product. It cost more for a local retailer to operate thus the higher prices. This is why internet companies can afford to sell for less.

They will pay more I never have understood why.



[Modified by nsxxtreme, 5:06 PM 9/19/2002]

 

Don't take this the wrong way but....Bullshit... That is already taken into account...or rather the smart ones have. Take this into account:

Xtant X604 amp....well known amp...kinda popular.

Retail ( suggested mind you) $1200.00 is what Mitek suggests it be sold for
my store was $1000.00 not to bad....save $200.00
wholsale......Ahh for a little fun....$570.00 ( what a distributor is asing for it)
The Kicker...My stores cost on the amp.... $700.00

What I am saying is that as a salesperson...money is my motivation...if I sell at cost...I only take home min wage...not cool...its all bout PERCEPTION ...You percieive that the internet compaines have a better price and a better value.
Like it was stated above...many dont have install tech available,you have to pay to have a product shipped back if there is a problem and finally many cant help you if you have a problem because the manufacture wont deal with it. And all this for
( and yes I have check various sites) an product avg of say 39% profit (this is based on my brick and morter store's applied cost on similar items)...and they dont have the overhead...can you say Mo' MOney.

People will pay a premium for great service..bottom line. I drive 8 hours to Pittsburgh PA to get my Jetta serviced 3-4 times a year. Why cause I had gotten such shitty service from a few local dealers...one even lost my car for 2 days
and I wont go into the transmission incident. You are going to patronize the places that take care of you..that give exemplary custom service......there is more to the BIG picture than just saving a few bucks.

Okay I'm off my soapbox.....Bob46802 pretty much covered it a few posts back.


[Modified by audioroach, 11:43 PM 9/19/2002]


[Modified by audioroach, 11:44 PM 9/19/2002]


[Modified by audioroach, 11:45 PM 9/19/2002]


[Modified by audioroach, 11:46 PM 9/19/2002]

 

In response to this I must say a few things.

1. As an internet retailer we can not offer you installation assistance. That is a given and a choice you make when buying over the web. In exchange for not paying installers we can offer lower prices. I find that about 90% of the people who buy from us are men (16-24) who do their installs themselves.

2. Sevice on the other hand I must disagree with. To be fair I can agree with you bob that most places on the net do have sub-par service......we however do not. We pride ourselves on treating our customers fairly. I personally am a car audio/performance enthusiast and try my hardest to help all my customers as best I can and treat them like I would want to be. (We do not work on commision by the way).

3. If a unit does not work then the customer will usually have to pay to ship it back to us....there is no denying that. That is certainly a benifit of buying locally. You SHOULD not have to pay for it.....I agree. But, when you move as much product as we do it makes it very costly to have to pay for manufacturer maistakes. Sometimes there is a bad lot of product (Example, Blaupunkt San Jose MP41). It would cost us hundreds of dollars if we had to pay out of pocket for Blaupunkt's defective product. We are not to blame either you know. In the end the likelyhood that you will have something that is factory defective is very slim (about 2%-8% depending on manufacturer). In addition, you are still saving money even if you had to send something back. A $300.00 head unit from Crutchfield would be around $240.00 with us.

4. Lastly, for any manufacturer that will not honor the warrenty if the product is purchased on line, we take care of it....it's that simple. Rockford Fosgate is a good example. They refuse to help you out unless you pay a ton through a retail place. For any defective product we will exchange or repair it depending on what our distributor allows.


We have been around for over five years and we will be around for a long time because we are one of the few companies that actually cares. We have been seeing our competition falling out over time and it is because they do not/can not accomodate the customer.

For anyone that needs anything or has any questions feel free to call me at work.


Carl
AWE
(800) 831-5622

 

Audioroach almost your entire post was what I was trying to say. I don't think we are to off in thinking. As I posted earlier you should support your local stores, but you should educate yourself first. If you don't you will get reamed by the salesman. This is why I don't mind shopping from an internet source if I have to. It all depends on how I am treated by the salesman and what kind of prices he is going to give me. If I get told there isn't that much of a markup and they won't budge on the price I'll go elsewhere. You also just proved my 100% markup
Most companies would love to have a 39% profit margin. I have been around this business long enough to have seen a punch 45 HD new. I know what kind of BS gets pushed around.

Service does has a price, if I can save $100 or more elsewhere I will go elsewhere.
Personally I just get tired of listening to the salesman sob stories of how there isn't that much markup and they don't make much money. I don't mind takeing out the middle man. To me this is like having to pay a salesman to help you pick out your groceries. They usually only have there best interest in mind. They don't sell you the best product, they sell you the product that has the highest profit margin. This doesn't benifit the consumer.

By the way, the products I listed with prices were all purchased when they were considered new on the market. I have lost interest in car stereos, it's been a while since I have had to buy anything. Now all these thing collect dust because they don't fit in my car.



[Modified by nsxxtreme, 2:24 AM 9/21/2002]