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Speaker Asylum General speaker questions for audio and home theater. |
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Speaker Asylum General speaker questions for audio and home theater. |
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In Reply to: Fun Manufacturer's Cost Questions... posted by truthseeker on March 22, 2000 at 10:11:03:
Per MM's post,I too sell speakers, and quite nice ones at that. (maybe I'm just a lttle biased) I will go internet soon.
If you sell internet, you compete with your dealers. So to remain fair you have to charge the same price. Or he loses business and is no longer interested in carring your product. You must also agree to not take sales in his home market. (no compete with dealer thier home market agreement)
If your internet exclusive, then you don't have this issue.
Transportation is a large cost, distributors are a large cost, the dealer has to eat, and high end doesn't jump off his floor like 200$ boxes.
If I deal with mail order folks, and I do, then I offer trial and return. My policy is straight forward. You tries it, you doesn't likes it, you sends it back. No questions asked. However it has to be in same condition and you pay shipping both ways. So for a 2500 system risk free, you risk about 70$ in shipping. I have only had one pair come back, comments:
his wife didn't like the veneer match to other furniture. Such is life.My raw material costs on 2500 speaks: Drivers 900, X/O 120, boxes delivered to me, I sub out most of them 350, transport 40 to me.
Assembly time: 3.5 hours, crate time .5 hours, shipping and invoicing includes errant collections etc. about .5 hours, advertisement about 40$, design time about 90 days! Trade show display minimum 15,000.
You have to cover your overhead, health care and employee bennies, shipping, travel to dealers, dealer demo's etc. It is a business. I just chose the one I loved. Cables amps pre-amps damage in shipping or insurance, unemployment, SS, and on, and on, and still make some money at the end of the day or your out looking for work. You know I have to pay the same costs as your employer. For some reason a lot of audiophiles view speaker costs dis-similiar to the cost involved in purchasing a car or a house.
Its like building a house, if you do it yourself you can save some money, but ya gotta work, you may screw it up, and you may not like what you have when your done. It may also cost you more, because a large builder get volume discounts that you most certainly will not.
Bottom line my actual net on averaged sales is about 15%. Not great but I can live on it, and no I don't drive Ferrarri's I drive an old Olds, and my wife drives an old Mini-van. But we do have a lot of music and fun.
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Follow Ups
- Re: Per MM's post - jeff (the obnoxious) 07:05:44 03/23/00 (2)
- Well Stated - Doc 14:12:20 03/23/00 (0)
- Re: Per MM's post - truthseeker 08:10:08 03/23/00 (0)
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