Members TeRM Posted December 22, 2005 Members Share Posted December 22, 2005 I was just wondering if any of you have any reliable information on what kind of markups music stores get for guitars and amps. If you see a $1000 guitar in a store, did they get it for $500? $700? $900? Thanks for your input!!! Link to comment Share on other sites More sharing options...
Moderators The Eristic Posted December 22, 2005 Moderators Share Posted December 22, 2005 Cost is usually 50% of list. Link to comment Share on other sites More sharing options...
Members TeRM Posted December 22, 2005 Author Members Share Posted December 22, 2005 Originally posted by The Eristic Cost is usually 50% of list. Thanks... so just to make sure I understand correctly... if a guitar lists for $1400 and sells for $900, the store probably made a $200 profit off of the guitar? Link to comment Share on other sites More sharing options...
Members cloudnine Posted December 22, 2005 Members Share Posted December 22, 2005 Originally posted by TeRM Thanks... so just to make sure I understand correctly... if a guitar lists for $1400 and sells for $900, the store probably made a $200 profit off of the guitar? Link to comment Share on other sites More sharing options...
Members Phishmonkey Posted December 22, 2005 Members Share Posted December 22, 2005 I almost bought a Tkamine from someone in the company. Stores pay %50 percent of the list price and usually sell it for around a %30 profit. Link to comment Share on other sites More sharing options...
Members TeRM Posted December 22, 2005 Author Members Share Posted December 22, 2005 Thanks guys... awesome info!!! This will give me a better bargaining position when shopping for gear!!! Link to comment Share on other sites More sharing options...
Members TeRM Posted December 22, 2005 Author Members Share Posted December 22, 2005 Just out of curiousity... does the 50% off list thing hold true for drums and PA stuff and effects and everything, or only guitar equipment? Link to comment Share on other sites More sharing options...
Members GAS Man Posted December 22, 2005 Members Share Posted December 22, 2005 I agree with what was said above regarding the 50% of MSRP = dealer cost BUT!!!!!! Then there are deals like the late summer blow-out from Musician's Friend of Fender Blackouts. They had a listed MSRP of about $900 a regular discount price of $650, right? But then they had them on blow-out sale for $350 off (that dropped them down to about $299.95) and then there was a special "Fender Deal" of an additional $50 off Fender imports, so the net cost was about $250! So in this case the dealer cost clearly wasn't $450, and MF didn't sell them for $200 under their cost. So in some cases the dealer is obviously getting special runs (batches or lots) and the MSRP is a little exagerated. For example, you can get the same guitar still with a flame veneer top for the same $900 MSRP and regular $650 discount price, and you know those veneer tops cost the dealer a little more than the blackout versions. BUT as I said above, I agree from my info that in most cases, cost is about 50% of MSRP. Link to comment Share on other sites More sharing options...
Members TeRM Posted December 22, 2005 Author Members Share Posted December 22, 2005 Originally posted by GAS Man I agree with what was said above regarding the 50% of MSRP = dealer cost BUT!!!!!!Then there are deals like the late summer blow-out from Musician's Friend of Fender Blackouts.They had a listed MSRP of about $900 a regular discount price of $650, right?But then they had them on blow-out sale for $350 off (that dropped them down to about $299.95) and then there was a special "Fender Deal" of an additional $50 off Fender imports, so the net cost was about $250!So in this case the dealer cost clearly wasn't $450, and MF didn't sell them for $200 under their cost. So in some cases the dealer is obviously getting special runs (batches or lots) and the MSRP is a little exagerated. For example, you can get the same guitar still with a flame veneer top for the same $900 MSRP and regular $650 discount price, and you know those veneer tops cost the dealer a little more than the blackout versions.BUT as I said above, I agree from my info that in most cases, cost is about 50% of MSRP. Awesome... good thinking. Thanks! Link to comment Share on other sites More sharing options...
Members markas214 Posted December 22, 2005 Members Share Posted December 22, 2005 Originally posted by GAS Man I agree with what was said above regarding the 50% of MSRP = dealer cost BUT!!!!!!Then there are deals like the late summer blow-out from Musician's Friend of Fender Blackouts.They had a listed MSRP of about $900 a regular discount price of $650, right?But then they had them on blow-out sale for $350 off (that dropped them down to about $299.95) and then there was a special "Fender Deal" of an additional $50 off Fender imports, so the net cost was about $250!So in this case the dealer cost clearly wasn't $450, and MF didn't sell them for $200 under their cost. So in some cases the dealer is obviously getting special runs (batches or lots) and the MSRP is a little exagerated. For example, you can get the same guitar still with a flame veneer top for the same $900 MSRP and regular $650 discount price, and you know those veneer tops cost the dealer a little more than the blackout versions.BUT as I said above, I agree from my info that in most cases, cost is about 50% of MSRP. And Musician's Friend just like Wal mart has a lot of leverage to negotiate lower prices from their suppliers due to the large volumes they order. Link to comment Share on other sites More sharing options...
Members Redsand187 Posted December 22, 2005 Members Share Posted December 22, 2005 I was talking to a former Gibson dealer, and he was saying that they used to only make 100-200 dollars on the average Gibson they sold. He closed his shop about 3 and a half years ago, though. He also able to make a good living off his business. (he is retired and in his early 50's) But closed up for medical reasons. So obviously, if the mom and pop shops were able to follow a well thought out business plan, it is very possible that they would stay in business comfortably, even with the corprate take overs. Link to comment Share on other sites More sharing options...
Members rhat Posted January 21, 2006 Members Share Posted January 21, 2006 Originally posted by markas214 And Musician's Friend just like Wal mart has a lot of leverage to negotiate lower prices from their suppliers due to the large volumes they order. I agree ,, i was shopping for a H535 .....I did a net order from a big dealer.... and got a major league good price. I think some high volume dealers get alot lower price than your local store can and tend to blow guitars out at just above cost to keep the inventory turning over ......I have no idea what the guy had in the guitar ,,,, but he beat any price i found. MSRP is a hard figure to nail down .....you see all kinds of MSRP claims..and you see all kinds of color options and things.......I just shopped price ,,,,I got a no bells no whistles H535 in old sunburst. I have a H140 that i love ,,,,, i wanted a laminated hollow body ,,,,I pulled the trigger sight unseen ... i have never even played one ......It arrived today ... all i can say is OMG i love this guitar .......it met and exceeded all my expectations. The net is a wonderful tool for getting a good price ..... any questions ,, PM me . rat Link to comment Share on other sites More sharing options...
Members CO585 Posted January 21, 2006 Members Share Posted January 21, 2006 Originally posted by rhat I agree ,, i was shopping for a H535 .....I did a net order from a big dealer.... and got a major league good price. I think some high volume dealers get alot lower price than your local store can and tend to blow guitars out at just above cost to keep the inventory turning over ......I have no idea what the guy had in the guitar ,,,, but he beat any price i found. MSRP is a hard figure to nail down .....you see all kinds of MSRP claims..and you see all kinds of color options and things.......I just shopped price ,,,,I got a no bells no whistles H535 in old sunburst. I have a H140 that i love ,,,,, i wanted a laminated hollow body ,,,,I pulled the trigger sight unseen ... i have never even played one ......It arrived today ... all i can say is OMG i love this guitar .......it met and exceeded all my expectations. The net is a wonderful tool for getting a good price ..... any questions ,, PM me . rat Congrats on the new member of the family.... well? where are the pictures? Link to comment Share on other sites More sharing options...
Members Hudman Posted January 21, 2006 Members Share Posted January 21, 2006 Originally posted by GAS Man I agree with what was said above regarding the 50% of MSRP = dealer cost BUT!!!!!!Then there are deals like the late summer blow-out from Musician's Friend of Fender Blackouts.They had a listed MSRP of about $900 a regular discount price of $650, right?But then they had them on blow-out sale for $350 off (that dropped them down to about $299.95) and then there was a special "Fender Deal" of an additional $50 off Fender imports, so the net cost was about $250!So in this case the dealer cost clearly wasn't $450, and MF didn't sell them for $200 under their cost. So in some cases the dealer is obviously getting special runs (batches or lots) and the MSRP is a little exagerated. For example, you can get the same guitar still with a flame veneer top for the same $900 MSRP and regular $650 discount price, and you know those veneer tops cost the dealer a little more than the blackout versions.BUT as I said above, I agree from my info that in most cases, cost is about 50% of MSRP. Big box retailers run sales below cost. It's an old retail theory. They call it a "loss leader". They get you in the store to buy the monster discounted guitar knowing that you are likely to buy additional items and are more likely to become a repeat customer. They also benefit from turning over their inventory. Guitar Center wants to have the latest and greatest gear. Link to comment Share on other sites More sharing options...
Members jerry_picker Posted January 21, 2006 Members Share Posted January 21, 2006 Originally posted by markas214 And Musician's Friend just like Wal mart has a lot of leverage to negotiate lower prices from their suppliers due to the large volumes they order. Loss Leader Link to comment Share on other sites More sharing options...
Members keith2112 Posted January 21, 2006 Members Share Posted January 21, 2006 Remember now most good stores take %33 off right to start with. They don't make nearly as much as we think. That is why GC tries stupid stuff like "the case is extra" "OK you hang on to the case" that is like having one shoe. My non reverse firebird custom shop with burstbukers was 999 cost. I got it for 1100. Most shops sold that guitar for 1499 or so. I lucked up. I'm convinced when I get a SG standard for about 950 or so the dealer won't make but about 100 to 150 bucks. Remember Gibson's list prices are rediculous. Fender not as bad but growing. Link to comment Share on other sites More sharing options...
Members ending_zero Posted January 21, 2006 Members Share Posted January 21, 2006 I had assumed that Fender had a bunch of these guitars in a warehouse that they wanted to move quickly. MF is perfect for that type of situation. MF is big, but are they really big enough to take a $200 hit per guitar as a loss leader or leverage Fender for that kind of discount? Link to comment Share on other sites More sharing options...
Members jerry_picker Posted January 21, 2006 Members Share Posted January 21, 2006 Originally posted by ending_zero I had assumed that Fender had a bunch of these guitars in a warehouse that they wanted to move quickly. MF is perfect for that type of situation. MF is big, but are they really big enough to take a $200 hit per guitar as a loss leader or leverage Fender for that kind of discount? If its on a couple dozen guitars that they want out of the their warehouse, then sure. The advertizing value and customer loyality factor are well worth it..Look at all the attention blowouts get around here! Link to comment Share on other sites More sharing options...
Members red|dragon Posted January 21, 2006 Members Share Posted January 21, 2006 kind of off topic but... i used to work at bestbuy a while ago, as a seasonal employee , but i got to use my discount on stuff. bought a $320 tv for $275 bought a $90 dvd player for $79 and bought some $25 high definition wires for...get this..... $5!!!!!!!! point is... there is a different markup for different products, i couldnt believe i got those wires for only like $5 but they song for around $30!!! jesus.... total revenue - costs = profit Link to comment Share on other sites More sharing options...
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