Audio Note vs. Aries Cerat vs. darTZeel

[Hyperion]

I see, sorry. Yes, I agree. I’m all for a larger share of the selling price to go to the manufacturer. Look- it doesn’t make sense for the dealer/distributor to keep 50-60% of the selling price. They are not adding equal value to the manufacturer!

Investors take about 80% from my experience. 20% is more like a discount from the next financing round, or interest on a loan.

The margins differ greatly depending on setup, responsibility, investment, product category etc. An actual 50-60% margin is not the reality all things considered for anyone in the end. A typical dealer margin is 30-40% in general.

/ Marcus

 

[Lagonda]

I do believe that you need some more insight and real world experience to see the full picture.

Running a retail and/or distribution business depending on the setup involves negotiations, trade-ins, heavy investment in demo units, home loans, financial support, warranty + all of the overhead involved in running any business (rent, salaries, insurance, ...). Adding to this is the need of extensive PR and marketing activities throughout all channels - IRL and online. We did three shows last year (including our own - Take 5) + dedicated events in Sweden only.

If you manage to succeed, you're looking at a limited sales number on the higher level in a normal year on a small market such as Sweden (US and UK are vastly different though of course in terms of market size).

Fact is that most businesses within this space are working overtime to survive on the current market where few are truly flourishing.

/ Marcus, www.perfect-sense.se

You do seem to be quite successful at selling equipment, you periodically post congratulations on facebook to the new owners.

 

[Hyperion]

You do seem to be quite successful at selling equipment, you periodically post congratulations on facebook to the new owners.

I've invested most of my time and a lot of resources into Perfect sense during the last decade. Things have turned out well, for which I'm very grateful. Much due to the invaluable support of friends, family and clients.

Easy, no. Fulfilling, yes.

/ Marcus, www.perfect-sense.se

 

[dctom]

A good friend worked in Hifi retail, eventually running his own Hifi business. He told me his margin was around 30% depending on manufacturer, sometimes a bit less for lower cost items. A mark up of 80% is excessive to say the least.