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What happend to car audio? My little rant
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<blockquote data-quote="Mike465" data-source="post: 6805964" data-attributes="member: 598854"><p>Well here is my take on everything.</p><p></p><p>I do not really think people understand what shop owners are paying for their equipment. Example, someone on here talked about their local shop selling CVR's for $199. Yeah you can find them on the internet for $40-60 each. Does that mean the shops are getting the equipment at that price? Hell no, you have manufacturing pricing, distributor pricing, dealer pricing and MSRP. I know the local distributors in my area if I were to buy a CVR my cost is almost three times what you are going to buy it online for. Most of these shops don't charge MSRP but they don't make nothing off the product. Where they are going to make their money is off installs and install accessories.</p><p></p><p>Look at big chain stores Best Buy, HHGreg, Fry's electronics, etc. In order for these chains to stay competitive they all have for the most part the same pricing on products. These companies are not making jack off the sale of a TV or computer or IPod (When I used to work for Best Buy the store only made $10-30 profit off the sale of a computer) Where they are going to make up for this is selling cables, cases, extended warranty and services.</p><p></p><p>Yes, shops can get better pricing on products if they go direct with the manufacture. Well the problem with this is high buy-ins. I know Kenwood wants close to $6k for your first buy-in and then you have to order a set amount each month. Other lines are like this as well. What shop is going to do this for all their line when 75% of the people that walk in their store bought something online?</p><p></p><p>Let's look at the whole install thing. I have come across a few posts on here talking about install prices being too high. Most small shops are going to have one or two people working their. One dong installs and the other running the front and helping customers. So lets say the average shop does 2 head unit installs ($40-50 plus parts), and a sub amp ($60-80 plus parts) So the shop pulls in $200-300 a day in labor. You have someone that wants a box built and they are quoted for $300 and up. A lot of people are *****ing about this but lets look at it thought the shops eyes.</p><p></p><p>If they have two people working there that means the person who is installing is going to build the box and depending on how complex and how fast he/she is it is going to take about a half a day to build the box and then they have to install everything as well. Well someone comes in wanting some speakers installed but the shop cant touch it till the next day. Nine times out of ten the customer is going to want their stuff installed that day and when you tell them you can't get to it till tomorrow whats going to happen? They are going to find another shop to do the install.</p><p></p><p>So what if they built the box and did the amp install for $100? (Hey that's a really good price) Well that puts the shop losing $100-200 for that day when they could have done a few quick installs and made more money.</p></blockquote><p></p>
[QUOTE="Mike465, post: 6805964, member: 598854"] Well here is my take on everything. I do not really think people understand what shop owners are paying for their equipment. Example, someone on here talked about their local shop selling CVR's for $199. Yeah you can find them on the internet for $40-60 each. Does that mean the shops are getting the equipment at that price? Hell no, you have manufacturing pricing, distributor pricing, dealer pricing and MSRP. I know the local distributors in my area if I were to buy a CVR my cost is almost three times what you are going to buy it online for. Most of these shops don't charge MSRP but they don't make nothing off the product. Where they are going to make their money is off installs and install accessories. Look at big chain stores Best Buy, HHGreg, Fry's electronics, etc. In order for these chains to stay competitive they all have for the most part the same pricing on products. These companies are not making jack off the sale of a TV or computer or IPod (When I used to work for Best Buy the store only made $10-30 profit off the sale of a computer) Where they are going to make up for this is selling cables, cases, extended warranty and services. Yes, shops can get better pricing on products if they go direct with the manufacture. Well the problem with this is high buy-ins. I know Kenwood wants close to $6k for your first buy-in and then you have to order a set amount each month. Other lines are like this as well. What shop is going to do this for all their line when 75% of the people that walk in their store bought something online? Let's look at the whole install thing. I have come across a few posts on here talking about install prices being too high. Most small shops are going to have one or two people working their. One dong installs and the other running the front and helping customers. So lets say the average shop does 2 head unit installs ($40-50 plus parts), and a sub amp ($60-80 plus parts) So the shop pulls in $200-300 a day in labor. You have someone that wants a box built and they are quoted for $300 and up. A lot of people are *****ing about this but lets look at it thought the shops eyes. If they have two people working there that means the person who is installing is going to build the box and depending on how complex and how fast he/she is it is going to take about a half a day to build the box and then they have to install everything as well. Well someone comes in wanting some speakers installed but the shop cant touch it till the next day. Nine times out of ten the customer is going to want their stuff installed that day and when you tell them you can't get to it till tomorrow whats going to happen? They are going to find another shop to do the install. So what if they built the box and did the amp install for $100? (Hey that's a really good price) Well that puts the shop losing $100-200 for that day when they could have done a few quick installs and made more money. [/QUOTE]
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What happend to car audio? My little rant
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