it must be somewhere but...What is the mark up does your music store put on a guitar?
- Thread starter justFred
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Re: it must be somewhere but...What is the mark up does your music store put on a gui
I've heard it's as much as 100%.
I've heard it's as much as 100%.
Ayrton
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Depends of course, but yes.
I know from my old Guitar Center contacts that store "cost" was about 50% less than "list price". The pricing can be arbitrary, however, and manufacturers are moving away from the MSRP/MAP model to straight MAP pricing.
Different manufacturers have different costs for various reasons, so this can be a rabbit hole of sorts to go down.
This is a realistic scenario: Cost to build ($150) from big retailer to store ($300), store inventories at $500 "cost" with a list price of $999 and a MAP for $749
Depends of course, but yes.
I know from my old Guitar Center contacts that store "cost" was about 50% less than "list price". The pricing can be arbitrary, however, and manufacturers are moving away from the MSRP/MAP model to straight MAP pricing.
Different manufacturers have different costs for various reasons, so this can be a rabbit hole of sorts to go down.
This is a realistic scenario: Cost to build ($150) from big retailer to store ($300), store inventories at $500 "cost" with a list price of $999 and a MAP for $749
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JB_From_Hell
Jomo's Nimions
Re: it must be somewhere but...What is the mark up does your music store put on a gui
I manage an auto parts store. Some items are higher margin that others, but I’d say 60-ish percent is a good average. Music stores are probably similar.
I manage an auto parts store. Some items are higher margin that others, but I’d say 60-ish percent is a good average. Music stores are probably similar.
Kamanda~SD
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Keep in mind some manufacture's set the price (or at least the minimum advertised price) so the store is kind of SoL there. Unfortunately when I worked at a store I was not able to see any of that information...I doubt it's out there though, things like that are pretty tight lipped unless you're in the industry. Although the owners were cheap as ****, based on some of the 'employee pricing' there's no way they were marking stuff up 100%. At least I hope not haha
What I CAN tell you was that (once again, speaking from the place I worked at) the real bread and butter of the business was accessories and lessons.
Also keep in mind markup and margins are different, and only the later is really meaningful when it comes to analyzing finances.
Keep in mind some manufacture's set the price (or at least the minimum advertised price) so the store is kind of SoL there. Unfortunately when I worked at a store I was not able to see any of that information...I doubt it's out there though, things like that are pretty tight lipped unless you're in the industry. Although the owners were cheap as ****, based on some of the 'employee pricing' there's no way they were marking stuff up 100%. At least I hope not haha
What I CAN tell you was that (once again, speaking from the place I worked at) the real bread and butter of the business was accessories and lessons.
Also keep in mind markup and margins are different, and only the later is really meaningful when it comes to analyzing finances.
Chris Pile
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
In the old days, a Gibson dealer would pay $500 wholesale for a new Les Paul. List price was $1000. That was called "A" markup.... Most stores would sell that Les Paul for $800, or 20% off list.
Nowadays there is MSRP - Manufacturers Suggested Retail Price, and MAP - Manufacturers Actual Price (also known as Street Price).
You might think 100% markup was too high, but the profit was used to buy another Les Paul, pay for shipping, pay the salesman's cut of the price, pay the bank for loaning the money to buy the Les Paul (they called it floor planning), and a little profit for the store. Then places like Musicians Friend started mail ordering everything and that when prices started coming down. Widespread selling on the internet really made the competition a cutthroat deal - and tough for anyone to make a decent profit.
Today, it's NUTS. Fender, Gibson, and others not only sell to dealers - but wholesale to places like WalMart, Best Buy, etc, AND then direct to the public - thus cutting out all the dealers and the big box stores. Volume buying rules the day. Contract your entire years' worth of guitar sales from the maker in advance, and take your chances in the marketplace.
That's why I'm so glad I got out of retail in 1990 before it really got stupid.
In the old days, a Gibson dealer would pay $500 wholesale for a new Les Paul. List price was $1000. That was called "A" markup.... Most stores would sell that Les Paul for $800, or 20% off list.
Nowadays there is MSRP - Manufacturers Suggested Retail Price, and MAP - Manufacturers Actual Price (also known as Street Price).
You might think 100% markup was too high, but the profit was used to buy another Les Paul, pay for shipping, pay the salesman's cut of the price, pay the bank for loaning the money to buy the Les Paul (they called it floor planning), and a little profit for the store. Then places like Musicians Friend started mail ordering everything and that when prices started coming down. Widespread selling on the internet really made the competition a cutthroat deal - and tough for anyone to make a decent profit.
Today, it's NUTS. Fender, Gibson, and others not only sell to dealers - but wholesale to places like WalMart, Best Buy, etc, AND then direct to the public - thus cutting out all the dealers and the big box stores. Volume buying rules the day. Contract your entire years' worth of guitar sales from the maker in advance, and take your chances in the marketplace.
That's why I'm so glad I got out of retail in 1990 before it really got stupid.
Chris Pile
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Strings, reeds, drum sticks, books, etc., are what "keeps the lights on".
Lessons keep customers coming back in the store every week - bringing potential money for more purchases.
Strings, reeds, drum sticks, books, etc., are what "keeps the lights on".
Lessons keep customers coming back in the store every week - bringing potential money for more purchases.
Ayrton
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
You should feel comfortable asking for 10%-20% off MAP. However, you will have more success with that at a big box retailer versus a smaller independent.
You should feel comfortable asking for 10%-20% off MAP. However, you will have more success with that at a big box retailer versus a smaller independent.
NegativeEase
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
If your curious -MSRP on general manufacturing principle is typically about 5-6 times what the product costs to bring to market before the make any profit. So if an electric guitar costs $200 to manufacture and market -it's MSRP is set at around $1000 to 1200 (often they are further inflate MSRP to make discounting look bigger for volume discounting to the big wholesalers and ultimately consumers -and to give retailers more points to work with for Holiday sales etc) . but in general ABOUT 5 to 6x.
Internet sales and marketing have greatly disrupted a lot of these typicals though
If your curious -MSRP on general manufacturing principle is typically about 5-6 times what the product costs to bring to market before the make any profit. So if an electric guitar costs $200 to manufacture and market -it's MSRP is set at around $1000 to 1200 (often they are further inflate MSRP to make discounting look bigger for volume discounting to the big wholesalers and ultimately consumers -and to give retailers more points to work with for Holiday sales etc) . but in general ABOUT 5 to 6x.
Internet sales and marketing have greatly disrupted a lot of these typicals though
devastone
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
FWIW, MAP = Minimum Advertised Price, it's a price that stores can not advertise below, which is why you see the same gear the same price at most retailers. A store can sell below MAP, but they can't advertise it, unless there is a special deal or the item is discontinued (like the Blackstar Artist series at Sweetwater). Manufacturers get very upset if they see their products advertised below MAP and stores can loose product lines for doing it.
Yes, your salesman may have a little wiggle room under MAP, but he can't sell it to you for their cost, not if he wants to keep the lights on and/or keep his job.
FWIW, MAP = Minimum Advertised Price, it's a price that stores can not advertise below, which is why you see the same gear the same price at most retailers. A store can sell below MAP, but they can't advertise it, unless there is a special deal or the item is discontinued (like the Blackstar Artist series at Sweetwater). Manufacturers get very upset if they see their products advertised below MAP and stores can loose product lines for doing it.
Yes, your salesman may have a little wiggle room under MAP, but he can't sell it to you for their cost, not if he wants to keep the lights on and/or keep his job.
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Kamanda~SD
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Ok thanks for clarifying, wasn't sure what the end goal here was! In my experience, it was easier to bundle things than just get some $$ slashed off a guitar, depends on how big of a ticket the guitar is though.
MAP = Minimum Advertised Price. It is the lowest price a dealer can advertise a guitar at. They can sell it for lower and take the hit, but the idea behind MAP was to actually help even the playing field so you wouldn't just get undercut in price by the big boys.
Ok thanks for clarifying, wasn't sure what the end goal here was! In my experience, it was easier to bundle things than just get some $$ slashed off a guitar, depends on how big of a ticket the guitar is though.
MAP = Minimum Advertised Price. It is the lowest price a dealer can advertise a guitar at. They can sell it for lower and take the hit, but the idea behind MAP was to actually help even the playing field so you wouldn't just get undercut in price by the big boys.
Re: it must be somewhere but...What is the mark up does your music store put on a gui
+50% over wholesale = 1/3 of retail is pretty typical in most industries
Just consider the expense of renting floor space and either budgeting for damage or insuring the bejesus out of everything in reach of the plebs. And you got millions tied up in inventory, not all of which sells (although large chains with dealer contracts bully their prominent brands to absorb some of those losses)
And then you sometimes gotta pay the dropouts on the salesfloor too....although that part is beyond minor
+50% over wholesale = 1/3 of retail is pretty typical in most industries
Just consider the expense of renting floor space and either budgeting for damage or insuring the bejesus out of everything in reach of the plebs. And you got millions tied up in inventory, not all of which sells (although large chains with dealer contracts bully their prominent brands to absorb some of those losses)
And then you sometimes gotta pay the dropouts on the salesfloor too....although that part is beyond minor
SeaRefractor
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
How dare they!!! Should be no markup regardless of the shelf space cost, the amount of time it needs to be on display prior to sale, employee salaries and benefits! Profit = pure evil. If you are not starving for your art same applies... [JK]
How dare they!!! Should be no markup regardless of the shelf space cost, the amount of time it needs to be on display prior to sale, employee salaries and benefits! Profit = pure evil. If you are not starving for your art same applies... [JK]
justFred
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Lots of great info...lets see if I am catching on:
Squier Classic Vibe Tele Thinline MAP = $449
Less 20 % = $359
With tax = $388
so should I be able to reasonably pick up this axe for 388 out the door?
Lots of great info...lets see if I am catching on:
Squier Classic Vibe Tele Thinline MAP = $449
Less 20 % = $359
With tax = $388
so should I be able to reasonably pick up this axe for 388 out the door?
devastone
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
Everything here is guesstimates, so all you can do is ask, but I'm going to guess the margins on that are way too small for that much of a discount from a local store unless it has been sitting on the shelf for a long time and they just want to get rid of it.
Go online today, you should be able to get a 15 - 20% coupon on about anything and most online stores have free shipping and minimal if any tax.
If you think retail is crazy, you should see how small the profit is on new car sales.
Everything here is guesstimates, so all you can do is ask, but I'm going to guess the margins on that are way too small for that much of a discount from a local store unless it has been sitting on the shelf for a long time and they just want to get rid of it.
Go online today, you should be able to get a 15 - 20% coupon on about anything and most online stores have free shipping and minimal if any tax.
If you think retail is crazy, you should see how small the profit is on new car sales.
Ayrton
New member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
That is certainly realistic, but you may have to hit a big box retailer online. December is the month where all the deals will be available.
That is certainly realistic, but you may have to hit a big box retailer online. December is the month where all the deals will be available.
justFred
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
found it 382...the numbers do work!!!
https://reverb.com/item/12185065-squier-classic-vibe-telecaster-thinline-natural
found it 382...the numbers do work!!!
https://reverb.com/item/12185065-squier-classic-vibe-telecaster-thinline-natural
Re: it must be somewhere but...What is the mark up does your music store put on a gui
I have personally found there us much more wiggle room with higher priced items. YMMV.
I have personally found there us much more wiggle room with higher priced items. YMMV.
PS412
Well-known member
Re: it must be somewhere but...What is the mark up does your music store put on a gui
My local shop is right on par with any big chain or on line store for guitars and amps.
However, being the only store for around 450km they slaughter you on small things like strings and picks.
My local shop is right on par with any big chain or on line store for guitars and amps.
However, being the only store for around 450km they slaughter you on small things like strings and picks.
