The Truth About Resale Pricing
- Thread starter edsmith
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SonofaMitch
New member
Re: The Truth About Resale Pricing
Yup, I'm good friends with The Local PRS Dealer, and he HAS to mark them up 50% or he can loose his dealership with them
~Mitch~
Yup, I'm good friends with The Local PRS Dealer, and he HAS to mark them up 50% or he can loose his dealership with them
~Mitch~
3'scompany
New member
Re: The Truth About Resale Pricing
Yes, this is true. And knowing this can give you some serious leverage on prices as GC. I know I've saved thousands upon thousands knowing this and haggling accordingly.
Yes, this is true. And knowing this can give you some serious leverage on prices as GC. I know I've saved thousands upon thousands knowing this and haggling accordingly.
Jonny R
Volcano Fireologist
Re: The Truth About Resale Pricing
Yeah...I got one of my amps brand new from the wholesaler for basically 60% of retail because a friend of mine worked there. His brother got an electric and acoustic at the same discount too.
Interesting to be able to browse wholesale price lists.
Yeah...I got one of my amps brand new from the wholesaler for basically 60% of retail because a friend of mine worked there. His brother got an electric and acoustic at the same discount too.
Interesting to be able to browse wholesale price lists.
LoFiBrian
New member
Re: The Truth About Resale Pricing
yeah it really makes you pissy when you are at GC and they will only move down $100 on a blem and filthy SG standard when you just were already trading in your Traynor YCV80 that they were only going to give you $150 for...
we all know cost is next to nothing...I would have taken the hit on the Traynor if they would have gone $100 or $200 over cost on the SG...
They have done similar deals with friends. take a hit on used gear and they will move between cost and "everyday lowest price"
but the guy i knew was MIA and I guess that "manager" was commision hungry...
$150 for a $825 amp that they would prob mark at $500-$600...
then only going down to $1250 out the door on the SG with no case. belt rash and ding in a horn and rusty dead strings...it has been there new since 2005....
I lugged my Traynor home and told that guy he was a douche bag!
yeah it really makes you pissy when you are at GC and they will only move down $100 on a blem and filthy SG standard when you just were already trading in your Traynor YCV80 that they were only going to give you $150 for...
we all know cost is next to nothing...I would have taken the hit on the Traynor if they would have gone $100 or $200 over cost on the SG...
They have done similar deals with friends. take a hit on used gear and they will move between cost and "everyday lowest price"
but the guy i knew was MIA and I guess that "manager" was commision hungry...
$150 for a $825 amp that they would prob mark at $500-$600...
then only going down to $1250 out the door on the SG with no case. belt rash and ding in a horn and rusty dead strings...it has been there new since 2005....
I lugged my Traynor home and told that guy he was a douche bag!
J Moose
New member
Re: The Truth About Resale Pricing
Bullkrap.
The margin on PRS guitars is more like 20%.
Nothing except for strings & picks...maybe gig bags etc. gets a 50% markup.
Monster Cable is the WORST. The margin is closer to 70% on that crap!
I spent a few years on either side of MI retail... been out of that world for more then a decade & don't miss any of it...
Here's the key to most any & all pricing & dealer pricing... the math is pretty simple & you can use this to your advantage... or not.
Any & almost all products fall into what's called an "A"; "B" or "C" mark.
"A" mark... like a Fender or Schecter... The dealer purchases at 50% of the retail price and sells for 30% off the retail price.
"B" mark is the dealer buying at 40% off the list price & selling for closer to 20% off retail.
"C" mark dealer cost is 30% of list with a street price that's 10, maybe 15% (closer to 12 in reality) off the list price.
Of course, there are also "D" marks; B+ marks, C- etc. And the dealers sometimes get special deals... buy 30 guitars and get free shipping; or gig bags/caes; or 180 day terms with another 5% or....
Keep in mind before you beat 'em up... All the dealers gotta pay freight in, stock & maintain the goods... and provide a "service" to you, the customer.
Bullkrap.
The margin on PRS guitars is more like 20%.
Nothing except for strings & picks...maybe gig bags etc. gets a 50% markup.
Monster Cable is the WORST. The margin is closer to 70% on that crap!
I spent a few years on either side of MI retail... been out of that world for more then a decade & don't miss any of it...
Here's the key to most any & all pricing & dealer pricing... the math is pretty simple & you can use this to your advantage... or not.
Any & almost all products fall into what's called an "A"; "B" or "C" mark.
"A" mark... like a Fender or Schecter... The dealer purchases at 50% of the retail price and sells for 30% off the retail price.
"B" mark is the dealer buying at 40% off the list price & selling for closer to 20% off retail.
"C" mark dealer cost is 30% of list with a street price that's 10, maybe 15% (closer to 12 in reality) off the list price.
Of course, there are also "D" marks; B+ marks, C- etc. And the dealers sometimes get special deals... buy 30 guitars and get free shipping; or gig bags/caes; or 180 day terms with another 5% or....
Keep in mind before you beat 'em up... All the dealers gotta pay freight in, stock & maintain the goods... and provide a "service" to you, the customer.
Lava Man
New member
Re: The Truth About Resale Pricing
Right on the money! These mark's are also influenced by size of retail price. Tyically most MI retailers will not acept anything below "A" mark on items retailing for $100 or less such as accessories...and I bet if you did a survey of all small MI retialers across the U.S. for example you would find that they hover inbetween a B and C mark as an average for all items sold. A real shift from 20 years ago when these same dealers averaged close to an "A" mark for all items sold.
Right on the money! These mark's are also influenced by size of retail price. Tyically most MI retailers will not acept anything below "A" mark on items retailing for $100 or less such as accessories...and I bet if you did a survey of all small MI retialers across the U.S. for example you would find that they hover inbetween a B and C mark as an average for all items sold. A real shift from 20 years ago when these same dealers averaged close to an "A" mark for all items sold.
Pink Unicorn Horsey
Megä Pöny Rÿdr
Re: The Truth About Resale Pricing
Correct. And the price to a place like Guitar Center (i.e., the wholesale price) is about 20%-30% above cost. You may be paying twice what it costs for PRS to make the product, but they're only getting part of that up-charge, and GC is only getting part of it.
- Keith
Correct. And the price to a place like Guitar Center (i.e., the wholesale price) is about 20%-30% above cost. You may be paying twice what it costs for PRS to make the product, but they're only getting part of that up-charge, and GC is only getting part of it.
- Keith
Lu_B
New member
Re: The Truth About Resale Pricing
Its called business. I worked alot with the major supermarkets in my previous job and they basically pay 50% of retail for a product in store, then you've gotta support them with promotion, special offers etc. When you see a product reduced in store its not the store thats taking the hit its the poor bloody manufacturer.
Its called business. I worked alot with the major supermarkets in my previous job and they basically pay 50% of retail for a product in store, then you've gotta support them with promotion, special offers etc. When you see a product reduced in store its not the store thats taking the hit its the poor bloody manufacturer.
3'scompany
New member
Re: The Truth About Resale Pricing
Don't know that I agree about this statement on PRS guitars. I've bought a few PRS's from GC for more than 20-30% off their sticker price (not the inflated MSRP) and I'm talking out the door, tax included, in my hands.
I know that GC doesn't like me that much, in fact I'm pretty sure some of those guys flat out hate me, so I'm pretty sure they're not losing money when they sell to me.
Keep in mind, I haven't bought a guitar from GC in probably 3 years so things may have changed as of late, however, they certainly were buying guitars from PRS for less than 70-80% of their sticker price. And it might be that GC gets guitars at a cheaper price from their manufacturers than other smaller stores.
Don't know that I agree about this statement on PRS guitars. I've bought a few PRS's from GC for more than 20-30% off their sticker price (not the inflated MSRP) and I'm talking out the door, tax included, in my hands.
I know that GC doesn't like me that much, in fact I'm pretty sure some of those guys flat out hate me, so I'm pretty sure they're not losing money when they sell to me.
Keep in mind, I haven't bought a guitar from GC in probably 3 years so things may have changed as of late, however, they certainly were buying guitars from PRS for less than 70-80% of their sticker price. And it might be that GC gets guitars at a cheaper price from their manufacturers than other smaller stores.
Pink Unicorn Horsey
Megä Pöny Rÿdr
Re: The Truth About Resale Pricing
I had a conversation with a higher-up at PRS about this very topic about two years ago. Unless things have changed significantly, that's how it works.
I had a conversation with a higher-up at PRS about this very topic about two years ago. Unless things have changed significantly, that's how it works.
3'scompany
New member
Re: The Truth About Resale Pricing
Huh. Things must have changed recently because about 3 years ago I bought a McCarty stickered at $2,400 (from what I remember, maybe more) for $1,750 out the door. Figuring in tax, that guitar was sold to me before tax at near $1,620.
I'm not saying you're wrong, but I just know this wasn't the case a few years ago. It would make sense that things have changed though. I have noticed a rise in the price of PRS guits at GC. I wonder if they lost their favorable profit margins of yonder year?
Huh. Things must have changed recently because about 3 years ago I bought a McCarty stickered at $2,400 (from what I remember, maybe more) for $1,750 out the door. Figuring in tax, that guitar was sold to me before tax at near $1,620.
I'm not saying you're wrong, but I just know this wasn't the case a few years ago. It would make sense that things have changed though. I have noticed a rise in the price of PRS guits at GC. I wonder if they lost their favorable profit margins of yonder year?
Pink Unicorn Horsey
Megä Pöny Rÿdr
Re: The Truth About Resale Pricing
I've got notes on my conversation with the guy. I'll look 'em up and be right back with the figures, as well as the date of the conversation. Maybe things have changed -- not sure.
- Keith
I've got notes on my conversation with the guy. I'll look 'em up and be right back with the figures, as well as the date of the conversation. Maybe things have changed -- not sure.
- Keith
3'scompany
New member
Re: The Truth About Resale Pricing
D@mn. You're official. You don't mess around. :lmao:
D@mn. You're official. You don't mess around. :lmao:
Pink Unicorn Horsey
Megä Pöny Rÿdr
Re: The Truth About Resale Pricing
HAHAHAHA
Okay, here's the deal...
I had the conversation with this gentleman in February of last year. There's the production cost, which nobody gets, the wholesale cost out the door, which retailers get, the retail price, which no retailer sells the guitar for, and the store price, which is a discounted retail price (a.k.a. "street price").
Take a guitar that PRS sells wholesale to a place like Guitar Center for $1,000 (the wholesale cost). The retail markup is double that, or $2,000. Guitar center will take ~30% off the retail price, which makes it $1,400 to you, the customer. Most places will take anywhere between 25% and 40% off the retail price to sell to a customer off the street.
So, in short, a PRS that costs a retailer $1,000 will cost you somewhere between $1,200 and $1,500, depending on where you go, what their inventory is like, what promos they've got going on, etc.
I hope all of that made sense. :15:
- Keith
HAHAHAHA
Okay, here's the deal...
I had the conversation with this gentleman in February of last year. There's the production cost, which nobody gets, the wholesale cost out the door, which retailers get, the retail price, which no retailer sells the guitar for, and the store price, which is a discounted retail price (a.k.a. "street price").
Take a guitar that PRS sells wholesale to a place like Guitar Center for $1,000 (the wholesale cost). The retail markup is double that, or $2,000. Guitar center will take ~30% off the retail price, which makes it $1,400 to you, the customer. Most places will take anywhere between 25% and 40% off the retail price to sell to a customer off the street.
So, in short, a PRS that costs a retailer $1,000 will cost you somewhere between $1,200 and $1,500, depending on where you go, what their inventory is like, what promos they've got going on, etc.
I hope all of that made sense. :15:
- Keith
3'scompany
New member
Re: The Truth About Resale Pricing
/\ Makes perfect sense. I also think I may have been figuring my percentages wrong. Mass comm majors don't do math. Hahahaha.
/\ Makes perfect sense. I also think I may have been figuring my percentages wrong. Mass comm majors don't do math. Hahahaha.
Gearjoneser
Gear Ho
Re: The Truth About Resale Pricing
This thread reminds me of why I haven't bought anything new in years.....minus a pair of Sennheiser HD280 headphones.
The music store guys like me as a dude, but they all know they can't sell me anything.
At least I'm a stroke who doesn't expect service.
The only reason I go in there is to check out what's new. If I can't find it on the used market being sacrificed below cost, I assume I don't really need it.
This thread reminds me of why I haven't bought anything new in years.....minus a pair of Sennheiser HD280 headphones.
The music store guys like me as a dude, but they all know they can't sell me anything.
At least I'm a stroke who doesn't expect service.
The only reason I go in there is to check out what's new. If I can't find it on the used market being sacrificed below cost, I assume I don't really need it.
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