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From: UCHUCK%UNC.BITNET@ncsuvm.ncsu.edu (Chuck Bennett (919)966-1134)
Newsgroups: rec.audio.high-end
Subject: Re: Reasonable discount - faulty math?
Message-ID: <10155@uwm.edu>
Date: 13 Mar 91 13:40:03 GMT
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> From: ih8rlf0p@serss0.fiu.edu (jim stafford)
> Subject: Re: Reasonable discount on high-end components
> Date: 7 Mar 91 03:16:09 GMT
>
>
> The price structure (mark-up) on most high-end audio is: electronics 40pts,
> speakers 40pts (some 50), cables 50+pts, and such things as cartridges have n
> discernable pattern (I remember Grado cartridges that cost about $9 and sold
> for over $80, but most are around 50pts).  By points, I mean:
>
>     retail * ( points/100 ) = dealer cost
>
> In general, the only thing that is lower than 40 is video and other mass
> marketed stuff.
>
>
> good luck!
> Jim Stafford

Is my math slipping or is yours?  From your formula the higher the
points the less markup.  Examples:
              $100 (retail) * (40pts/100) = $40 dealer cost
              $100 (retail) * (50pts/100) = $50 dealer cost

Maybe the formula is:

       retail - (retail * (points/100)) = dealer cost

Back to the point.  I would hope that one would realize a larger
discount than 10%-12% when buying $10K worth of equipment, maybe not.  I
get a 10% discount on ANYTHING, even a $16 record, at the store where I
shop, here in NC.  If I bought $10K worth I would expect 20%-30% off.

Chuck