Best Buy: Are you sh!tting me?

[SkatinBassPLaya]

ooooooooo 70,000 dollars a year! lol

wups sorry I am not in this e fight.

 

[bigbangtheory 5,000+ posts]

the store i work at pays $90,000 a month rent and over $45,000 a week payrole a week and $28,000 a month on electricity and a week do $575,000- $650,000 in sales if the markup was your so called 3% how woukd we stay in business

Do they pay you more than minimum wage? Cause your lack of intelligence is beyond annoying and to tell you the truth, I don't know why they would have someone as yourself working for them.

 

[SkatinBassPLaya]

70,000 dollars is sooooooooooooooo much monies!!!!

 

[bigbangtheory 5,000+ posts]

70,000 dollars is sooooooooooooooo much monies!!!!

I will admit this guy is a tool, the 160db guy, but you are right next in line.

Then again you are from cali and your rents pretty much pay for all your shit.

Learn the value of a dollar and then talk bish!

 

[CrankItUp 10+ year member]

im the manager smartass and make $70,000 a year

No wonder their mark-up is 40%

 

[bimma85 5,000+ posts]

supermarket mart up is up to 40% on invoice they pay $2.28 a gallon of milk and sell it for $3.99 where the hell you think they only getting by on a 3% profit

Cost $ for the cooler the milk is in, cost money to keep that cool, cost money to have the milk put out, cost to have it sold, cost to put it in a bag, etc. etc. etc.

Don't how someone knows that a supermarket nets exactly 3% off a gallon though.

the store i work at pays $90,000 a month rent and over $45,000 a week payrole a week and $28,000 a month on electricity and a week do $575,000- $650,000 in sales if the markup was your so called 3% how woukd we stay in business

you guys pay over a million a year just in rent? before maintenance, utilites and everything else?

//content.invisioncic.com/y282845/emoticons/crazy.gif.c13912c32de98515d3142759a824dae7.gif

 

[azbass 5,000+ posts]

Common sense? You're the retard who didn't know which was better, the Type-S or Type-R.
Derrrrrrrrrrrrrrr.

//content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif I think the Type-S is better

 

[loudmofo 5,000+ posts]

Cost $ for the cooler the milk is in, cost money to keep that cool, cost money to have the milk put out, cost to have it sold, cost to put it in a bag, etc. etc. etc.
Don't how someone knows that a supermarket nets exactly 3% off a gallon though.

you guys pay over a million a year just in rent? before maintenance, utilites and everything else?

//content.invisioncic.com/y282845/emoticons/crazy.gif.c13912c32de98515d3142759a824dae7.gif

yes its a 60,000sq ft salesfloor in a price part of town

 

[audiolife 5,000+ posts]

If the trends are moving towards self-installing or buying products online, so the business will change. When RF, etc noticed audiobling flash was selling, the modified their business. They didn't go out of business.

Say I was a pretty good installer, I might not even sell equipment, just offer installs.

Do know know what the profit margin of grocery stores are? A good one makes 3%, a great one 5%...and some niche markets make around 7%. So a grocery store can make it on 3% but a car audio shop can't make it on 10%?

lol this is funny,

if noone sells product how much will you have to install? what kind of support will you have to do installs (remember not every car you get to work on will be as easy as a 96 ford ranger)? you would have to charge enough to cover your costs like tools and insurance.

why does a grocery store make it on 3%? (i ran a deli and meat department my first 5 years out of high school lol) simple volume! people need food more people buy from grocery stores daily-weekly-monthly- than car audio shops. your percent margin is also dependant on volume not on a straight percentage. smaller stores tend to want a higher margin than 3%.3% might be good after you consider spoilage losses, items breaking and theft. to put it in perspective a slow day at a small grocery store like i worked at is 15 grand. net profit for the day at 3% =450 bucks. divide that by 5 employees at an average of 8 dollars an hour (some people make more than that by the way and it isnt figuring insurance or social security) over 13 hours the store is open. you have lost money just in labor (not counting building costs, heat, power, water, cost of bags and garbage disposal)lol. an average day was closer to 25k at 5% fridays though were always 5-10 times that in sales.

on a yearly basis the average person probably spends more on food in one month than they do car audio (unless you still live with mom and dad). reason i say that is simply due to the fact most people are not car audio buffs.

now when i was a senior installer at BB we sold about 2500-3500 a day in car audio. with 3+ employees working a day in sales-at least ,3 installers (install bay takes in 500). if we made 10% we wouldnt make money. by the time you pay employees, figure in floor space rent, sup pay, cost of displays (like they have is not cheap) and other costs (like advertising car audio) they would lose money.

costs of running a shop, rent-$1000-$2600 easy, a display (if it is decent and new) $40k, and product to put in those displays $5k plus opening orders or hell lets just go with a distributor so we dont need $20k to just carry pioneer,sony or kenwood direct. open with 30k total in product. some things will sell faster than others so some of your investment will be some dead weight until it moves. so at $2000ish in rent, 300ish in utilities, 200ish for insurance for the building, 200ish for car insurance, 70ish for the phone, 300 a month to advertise (that is very modest considering a monthly radio spot ads can cost thousands) you need to make over $3000 a month before ANYONE gets paid (not counting any loans for product, displays or tools). if you have 5 employees lets say you pay them 400 each a week now all the sudden you need to make $11,000 a month in profit before you get 1 cent. so now lets say you sold what best buy does at 3500 a day. at 10% profit you would make 10,500 a month so not only would you have a shitty shop but you would be losing 500 a month and that is at a minimum.//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Flipx99 5,000+ posts]

you do realize that the profit pioneer, eclipse, (place your manufacturer name here unless it isnt in shops) gets is from the shop you buy from and not you directly right? lol

I am aware of thus. Usually there is also a distributor between the shop and the company. Maybe even another middle man. There is not that much information available about it publically. (In Finance journals, economic journals, and besides that 1 issue of Forbes with Tommy McKinnie, businessweek, etc)

If the latest CA&E issue says the car audio market is a $7B per year industry. That is about the equivalent of 1 division ( aprox 400 stores) of Lowe's.

supermarket mart up is up to 40% on invoice they pay $2.28 a gallon of milk and sell it for $3.99 where the hell you think they only getting by on a 3% profit

http://finance.google.com/finance?client=ob&q=KR

http://finance.google.com/finance?q=NYSE:SWY

http://finance.google.com/finance?q=NASDAQ:WINN

I can go on and on about profit margin. You may not be able to manage your way out of a paper sack, but don't ever in your life try to call me out on financial ratios.

the store i work at pays $90,000 a month rent and over $45,000 a week payrole a week and $28,000 a month on electricity and a week do $575,000- $650,000 in sales if the markup was your so called 3% how woukd we stay in business

See above. You are a stupid fvck. Like your store is the only store....//content.invisioncic.com/y282845/emoticons/rolleyes.gif.c1fef805e9d1464d377451cd5bc18bfb.gif

I don't think that anyone really cares how much your store pays for a gallon of milk. You just keep putting it on the shelf hero.

I do. But on an aggregate level. What he doesn't know is all store's don't pay the same amount for all products. Or there is a heterogeneous vendor mix. You can't have both.

Cost $ for the cooler the milk is in, cost money to keep that cool, cost money to have the milk put out, cost to have it sold, cost to put it in a bag, etc. etc. etc.
Don't how someone knows that a supermarket nets exactly 3% off a gallon though.

you guys pay over a million a year just in rent? before maintenance, utilites and everything else?

//content.invisioncic.com/y282845/emoticons/crazy.gif.c13912c32de98515d3142759a824dae7.gif

I didn't say anything about a gallon of milk. I spefically mentioned the profit margin of major grocery stores.

lol this is funny, if noone sells product how much will you have to install? what kind of support will you have to do installs (remember not every car you get to work on will be as easy as a 96 ford ranger)? you would have to charge enough to cover your costs like tools and insurance.:

Sudy fragmented markets much? This isn't the first time it will happen, isn't the last. Just maybe you know a bit more about car audio and care more about it, but from an economical and financial point of view, it is nothing new.

Here's a couple possible scenarios

1. Car audio manufacturers focus their efforts on products that people can easily and quickly install themselves.

2. Friends, forums, etc are always willing to lend support, help, and advice.

3. The business model will have to change. Some people will go bankrupt. Some people will starve. Some people will modify their plans and get rich.

why does a grocery store make it on 3%? (i ran a deli and meat department my first 5 years out of high school lol) simple volume! people need food more people buy from grocery stores daily-weekly-monthly- than car audio shops. your percent margin is also dependant on volume not on a straight percentage. smaller stores tend to want a higher margin than 3%.3% might be good after you consider spoilage losses, items breaking and theft. to put it in perspective a slow day at a small grocery store like i worked at is 15 grand. net profit for the day at 3% =450 bucks. divide that by 5 employees at an average of 8 dollars an hour (some people make more than that by the way and it isnt figuring insurance or social security) over 13 hours the store is open. you have lost money just in labor (not counting building costs, heat, power, water, cost of bags and garbage disposal)lol. an average day was closer to 25k at 5% fridays though were always 5-10 times that in sales.


Find me public grocery stores that have better than 10% margin and I'll give you $20. You are correct on how volume matters, you are wrong about the profit margin of these companies. I can look through Kroger's annual report tomorrow to tell you exactly what the profit margin is of the deli counter, provided the break out "mini" income statements from each of the business units.

You, just like the other guy, are thinking of a one store context. I am talking about an industry.

on a yearly basis the average person probably spends more on food in one month than they do car audio (unless you still live with mom and dad). reason i say that is simply due to the fact most people are not car audio buffs.

No reason to disagree with this statement. I assume this is reinforcing your point about volume.

now when i was a senior installer at BB we sold about 2500-3500 a day in car audio. with 3+ employees working a day in sales-at least ,3 installers (install bay takes in 500). if we made 10% we wouldnt make money. by the time you pay employees, figure in floor space rent, sup pay, cost of displays (like they have is not cheap) and other costs (like advertising car audio) they would lose money.

costs of running a shop, rent-$1000-$2600 easy, a display (if it is decent and new) $40k, and product to put in those displays $5k plus opening orders or hell lets just go with a distributor so we dont need $20k to just carry pioneer,sony or kenwood direct. open with 30k total in product. some things will sell faster than others so some of your investment will be some dead weight until it moves. so at $2000ish in rent, 300ish in utilities, 200ish for insurance for the building, 200ish for car insurance, 70ish for the phone, 300 a month to advertise (that is very modest considering a monthly radio spot ads can cost thousands) you need to make over $3000 a month before ANYONE gets paid (not counting any loans for product, displays or tools). if you have 5 employees lets say you pay them 400 each a week now all the sudden you need to make $11,000 a month in profit before you get 1 cent. so now lets say you sold what best buy does at 3500 a day. at 10% profit you would make 10,500 a month so not only would you have a shitty shop but you would be losing 500 a month and that is at a minimum.//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

What makes a best buy different than a independant shop is this thing called activity based accounting. You can divide activties and move costs from high margin / low effort sales to offset the costs of high effort / low margin sales.

There is a shop owner that I think very highly of, and is a pioneer in this shifting business model....that is 6spdcoupe. He is able to distribute prodiuct far and wide, provide excellent customer service, and still makes a nice margin (That temp rainbow guy told me the cost on some Rainbow products, but it's all good) He is also an installer that has his shop on his property, which lessens much of the overhead you indicate. He also has the luxury of selecting work.

Just as some shops may attempt to install $50 head units per day, some installers may want to spend 50 days on a $20,000 install.

This fragmented markets has already spread to modern finance, law, etc.

There is a company called sharebuilder which offers little to no support and $4 trade. No advice, a few delayed charts, not much assisatance at all. Then there's Edward Jones who charges $20 a trade and will give you all the advice you want. Some customers want that extra customer service and are willing to pay for it to trade stock. Other customers could do without the customer service and wish to pay less to trade stock. Guess what, both companies are doing well. Edward Jones realized that it couldn't compete on sharebuilder for price, so they spent a lot of money on training and nice offices, etc so the customers could get some value for their money. They changed their business model and where able to survive.

As more and more lawyers graduate, they too face fragmented markets. Some take the OJ case, which lasts a year (injury cases often last longer), some are traffic lawyers and do 20 cases a day. But for these car audio shop owners to sit back and say "Woe is me, the internet is killing me" will perish and that is a good thing. Shops that evolve and take advantage of what the internet has to offer will do well.

 

[audiolife 5,000+ posts]

I am aware of thus. Usually there is also a distributor between the shop and the company. Only 2 ways to get product, direct via a rep or a distributor (distributors buy at a discount because of the volume they buy and reps get a % of the direct sale

If the latest CA&E issue says the car audio market is a $7B per year industry. That is about the equivalent of 1 division ( aprox 400 stores) of Lowe's.

I can go on and on about profit margin. You may not be able to manage your way out of a paper sack, but don't ever in your life try to call me out on financial ratios.

your reality of volume of car audio sold per area is way the fook out there or you don't realize the limited area you have in which to sell unless you actually think a manufacturer is going to give you worldwide sales rights which they wont + they don't even allow distributors that and they do 100x more business than you would

I do. But on an aggregate level. What he doesn't know is all store's don't pay the same amount for all products. Or there is a heterogeneous vendor mix. You can't have both.

I didn't say anything about a gallon of milk. I spefically mentioned the profit margin of major grocery stores.

major large stores that is if you don't have the volume you must increase profit margin, last time i looked alot of big stores were not doing so hot

Sudy fragmented markets much? This isn't the first time it will happen, isn't the last. Just maybe you know a bit more about car audio and care more about it, but from an economical and financial point of view, it is nothing new.

Here's a couple possible scenarios

1. Car audio manufacturers focus their efforts on products that people can easily and quickly install themselves.

considering what it takes to put a simple radio in some cars no-a-days i don't see that happening lol

2. Friends, forums, etc are always willing to lend support, help, and advice.

3. The business model will have to change. Some people will go bankrupt. Some people will starve. Some people will modify their plans and get rich.

or go away as a whole because the point of being in business is to make money,plus they dont dictate what is or isnt easy to install..the car manufacturer has alot more control there. the way you have it figured people should make $8 an hour working for big box stores:laugh:

why does a grocery store make it on 3%? (i ran a deli and meat department my first 5 years out of high school lol) simple volume! people need food more people buy from grocery stores daily-weekly-monthly- than car audio shops. your percent margin is also dependant on volume not on a straight percentage. smaller stores tend to want a higher margin than 3%.3% might be good after you consider spoilage losses, items breaking and theft. to put it in perspective a slow day at a small grocery store like i worked at is 15 grand. net profit for the day at 3% =450 bucks. divide that by 5 employees at an average of 8 dollars an hour (some people make more than that by the way and it isnt figuring insurance or social security) over 13 hours the store is open. you have lost money just in labor (not counting building costs, heat, power, water, cost of bags and garbage disposal)lol. an average day was closer to 25k at 5% fridays though were always 5-10 times that in sales.
Find me public grocery stores that have better than 10% margin and I'll give you $20. You are correct on how volume matters, you are wrong about the profit margin of these companies. I can look through Kroger's annual report tomorrow to tell you exactly what the profit margin is of the deli counter, provided the break out "mini" income statements from each of the business units.

your volume will dictate the percentage profit you need

You, just like the other guy, are thinking of a one store context. I am talking about an industry.

considering a large portion of people you pull your knowledge from about car audio work at or have their own shop (not all bb or cc) you are eventually shooting yourself in the foot, and those who dont work for have or know someone who does. if there are less shops there is less help, if there are less shops there are less manufacturers (especially high end). big shops low profit margins ruin product value. when that happens they tend not to make anything "high end"

No reason to disagree with this statement. I assume this is reinforcing your point about volume.

What makes a best buy different than a independent shop is this thing called activity based accounting. You can divide activities and move costs from high margin / low effort sales to offset the costs of high effort / low margin sales.

as a whole store or as all of their stores 1 or 2 stores in a district can have losses if the rest make enough money. on some items they have very little profit margin others have more and they make a killing on service plans and accessories as a whole the store still needs to profit more than 10% and as an electronics retailer they sell an outrageous amount again VOLUME

There is a shop owner that I think very highly of, and is a pioneer in this shifting business model....that is 6spdcoupe. He is able to distribute product far and wide, provide excellent customer service, and still makes a nice margin (That temp rainbow guy told me the cost on some Rainbow products, but it's all good) He is also an installer that has his shop on his property, which lessens much of the overhead you indicate. He also has the luxury of selecting work.

i don't know many well established manufacturers that would allow sales without a store front in fact most good distributors don't allow you to do that. if you were a rep you might be able to swing it but at the same time if the shops you sold to found out that you were low balling product on line they probably wouldn't be buying from you much longer. A LOT of companies go under from not making it into the mainstream market place. those that do direct sales generally do so until they get big/well known enough where they are sold in retail shops then they STOP selling direct. i don't know 6speed's personal situation but i do know he knows what i am talking about and he even hoists red flags on those selling product unauthorized

Just as some shops may attempt to install $50 head units per day, some installers may want to spend 50 days on a $20,000 install.

that is market dependent as well as volume dependent

This fragmented markets has already spread to modern finance, law, etc.

There is a company called sharebuilder which offers little to no support and $4 trade. No advice, a few delayed charts, not much assisatance at all. Then there's Edward Jones who charges $20 a trade and will give you all the advice you want. Some customers want that extra customer service and are willing to pay for it to trade stock. Other customers could do without the customer service and wish to pay less to trade stock. Guess what, both companies are doing well. Edward Jones realized that it couldn't compete on sharebuilder for price, so they spent a lot of money on training and nice offices, etc so the customers could get some value for their money. They changed their business model and where able to survive.

wtf does that have to do with car audio?

As more and more lawyers graduate, they too face fragmented markets. Some take the OJ case, which lasts a year (injury cases often last longer), some are traffic lawyers and do 20 cases a day. But for these car audio shop owners to sit back and say "Woe is me, the internet is killing me" will perish and that is a good thing. Shops that evolve and take advantage of what the internet has to offer will do well.

Again i don't know wtf that has to do with car audio:laugh: when you sign up to become a dealer they give you an area to sell in and only allow a certain number of dealers sell their product depending on population in the area and or the rep decides that another shop might sell better than you and he/she (the rep) might just let them both sell with the weaker store giving up on a prized line! AS a dealer most manufacturers have what they call MAP pricing as well. so if you go off and decide to advertise your shop selling at 10% over dealer costs guess what? you will most likely lose your best lines due to not following the rules in which your manufacturer has set up. so then you would be dealing with transhipers. (see you put a lot of blame on owners when in fact it would be the industry you would have the issue with lmao) then if you were fortunate to get big enough to be making $$ on a low profit margin guess what? that manufacturer very well can come out with an ad saying you are not authorized and not to buy from you. say you don't care but i bet it hurts your volume and if you don't have a repair center (you have to pay them) or your transhipper cant get a product fixxed/replaced you may either take the bad feedback or replace their product with a new one out of YOUR OWN POCKET at 10% margin that will take 10 sales of like priced items to break even on(have an item with a 5% failure rate that would destroy you). i also know a large internet retailer they did 200,000 a month easy highest profit month they had was $14,800 before bills. so in making 2.4 million in sales the owner made under 30k a yr working there as the owner (that was pay and net profit). monthly/bimonthly they would buy 150k in new stuff to sell but if you pick the wrong items to sell you can very well EAT the cost of that as well as if it does not sell over a few months time it depreciates in value but that is another topic //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif do we want to get into the big box stores and the fiasco they can cause for manufacturers? i am game if you are

 

[audiolife 5,000+ posts]

I will admit this guy is a tool, the 160db guy, but you are right next in line.
Then again you are from cali and your rents pretty much pay for all your shit.

Learn the value of a dollar and then talk bish!

the "160db guy" is really into the car audio market place......not kidding.

 

[2kchevy06civic 5,000+ posts]

Whew

 

[audiolife 5,000+ posts]

Whew

hey now better watch it before we kidnap you and make you work in a sweat shop for 45 cents a day! lol