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In general how much of a discount should i expect on a amp used as a demo at a shop?

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Posted on March 16, 2017 at 13:40:54
V01
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Location: North East
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say they claim around 6 months use...

 

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Depends, posted on March 16, 2017 at 13:52:28
Awe-d-o-file
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on the brand a few other things. Some brands cost dealers as low as 40 cents on the dollar and some as high as 65-70. Time in the store could only change how willing the dealer is to sell which may be affected if he bought it outright or its floor planned.

So what is it?


ET

"If at first you don't succeed, keep on sucking till you do suck seed" - Curly Howard 1936

 

Brand new a discount of 15% is typical. So I would ask 25% off retail, posted on March 16, 2017 at 14:03:55
3+4=5
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Posts: 391
Location: Midwest
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Some dealers think MSRP is THE price to sell at.
Those dealers may think 10% is plenty to offer as a discount for a floor demo.
A lot depends on current model? discontinued? slow seller? store no longer carrying the brand?
It may be the dealer just sells off demo equipment as many manufactures have a warranty rule of from the time the store GETS the item, not when they sell it. Particularly for demo stuff. So stores well the demo at six months.. etc.

If it is a discontinued model, the price is almost like used. And for an example, a Bryston 4B=SSTē now is worth maybe at best 50% of new at this point.
No dealer wants to sell it at that price. But for the buyer.. that is all it is worth.

 

RE: Depends, posted on March 16, 2017 at 14:19:29
V01
Audiophile

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Location: North East
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Primaluna Prologue Premium. I was offered about 15% off for a demo that they say was used about 6 months. Doesnt seem like that great of a deal to me.

 

You're in the drivers seat, posted on March 16, 2017 at 14:43:55
dirtyvinyl
Audiophile

Posts: 1732
Joined: December 10, 2011
Don't let the dealer dictate value

It's USED, however you slice it. With CASH in hand, offer 60-70% of full retail.
I have a different PL, I like it, but come time to sell it, I will come to terms I ain't gettin'
80% of my investment back.

If dealers balks, check the online sites , there's a PL somewhere with seller needing
the cash. They seem to go quick, so be prepared to act fast.

 

RE: You're in the drivers seat, posted on March 16, 2017 at 17:22:01
raya
Industry Professional

Posts: 361
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Agreed. Used is used. Some demo units stay on all day......some very little. However, it is still used.

 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 17, 2017 at 07:53:41
airtime
Audiophile

Posts: 8572
Location: Arizona
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Search and see how much it goes for used. That's about what it's worth.

Do know this before buying a demo. A lot of demos are refurbs, factory seconds or returned units. There may be a longer history to it than even the sales person knows about.

 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 18, 2017 at 01:26:53
gordguide
Audiophile

Posts: 99
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Demo merchandise comes with a full manufacturer's warranty, so they are not the equivalent of a premium used example. I would expect discounts of 10 to 30% from MSRP and since the warranty is part of the transaction, even the lower discount, on certain products, could be a good deal.

The dealer knows what his markup needs to be in order to keep the lights on and the rent paid. He will be willing to make little to no money on a demo unit, so it will sell for less than a typical retail sale. But it's still a retail sale; it's not going to go out the door for free.

 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 18, 2017 at 01:53:08
gordguide
Audiophile

Posts: 99
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I have never heard of a dealer selling demo gear that is actually refurbs. Refurbs come into the store at a huge discount already; the retail price on a refurb is often less than dealer cost on a new unit from inventory.

Refurbs also come with a different warranty and often different packaging than factory fresh units. So it's not difficult to tell if what you are buying is new or refurb.

Let's not forget the dealer pays for shipping for most gear; he will have lines he moves regularly that he orders in sufficient quantity to get free shipping, maybe he's a Marantz dealer, for example, and will make relatively large orders from them, but that won't apply to most items he carries, and certainly won't apply to anything catering to audio specialty buyers. Nobody is buying Audio Research gear by the truckload.

He has a line of credit at the bank that he uses to pay for inventory, and that has an interest rate that also adds to the book value dealer cost. With his fast-moving line ... let's say it's Marantz again ... he pays in interest to a certain extent what he saves with a shipping allowance by buying in quantity.

All in all, if he has a boutique item with a 33% margin, after he adds shipping and demand loan interest, his raw cost is going to be maybe as high as 25% from MSRP.

Some manufacturers will offer a discount on Dealer Cost based on inventory at hand on the day new models are introduced or announced; those will be reflected directly in the price (a practice that became necessary in the computer industry beginning in the mid-80's).

It is not universal, however; it usually only applies to product categories where technology means new models are introduced yearly or more often.

There is such a thing as a "Floor Plan" whereby the dealer essentially rents his inventory from the distributor, paying a fee per month based on inventory on hand, but that is an expensive way to operate and is usually only done by stores that sell more than just audio gear. It's an expensive way to manage inventory and they will be selling everything at MSRP or close to it. Most readers of this forum wouldn't even shop at such a store.

 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 18, 2017 at 07:32:32
krankkall
Audiophile

Posts: 261
Location: New Mexico
Joined: April 5, 2014
My first decent piece of stereo gear was a demo, back in the early 70s.
I got a demo Sherwood S-8900A for about 33% of new back then.

Steve

 

RE: You're in the drivers seat, posted on March 18, 2017 at 08:44:13
AbeCollins
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"Some demo units stay on all day......some very little."

And some get loaned out for audition into who knows how many homes. Many demo pieces are early serial number units, some loaned out to reviewers, some back from trade shows, etc. Technically these are used but given the snake oil nature of this hobby I tend to not trust 'demo' units. I actually prefer buying lightly used 1-owner gear.



 

RE: Depends, posted on March 18, 2017 at 08:51:36
AbeCollins
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I can get 20% off on just about anything brand new from one of my dealers w/o even asking. It's a given that he takes off 20%.

15% off on a used piece of gear is a joke and an insult IMHO. I get 15% off MSRP postcard coupons in the mail all the time from another local dealer. This is on brand new gear.

I've also negotiated 40% off new MSRP on certain brands in years past but I think those brands 'cleaned up their act' with their dealer network. While excellent products, those brands never held their value because everyone knew they were worth maybe 40% off MSRP to begin with.


 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 18, 2017 at 12:32:31
Diogenes
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What about at an audio show?

 

What about at an audio show? good question.., posted on March 18, 2017 at 12:57:46
3+4=5
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I do not know, but it is a good question worth a separate topic.

 

Agreed, posted on March 18, 2017 at 13:30:15
airtime
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A dealer does have to pay to keep the lights on and pay for the amp as well.

I didn't mean any slander buying a demo. Like you did say - getting the warranty is part of what you are paying for. And usually it's a higher ended product you're looking at. Not a NAD C316BEE for a few hundred dollars.

Obviously you sound like you're in the biz or know a lot about it. I'm only drawing on my experiences with those I "knew YEARS ago". They sold those classic 70s receivers locally. They usually had factory refurbs. Today with a Pass Labs or Prima Luna - you're better off sending a dealer a new fully functional amp.

 

RE: Depends, posted on March 19, 2017 at 03:20:13
fantja
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Abe-

whom is your dealer/retailer?

 

RE: In general how much of a discount should i expect on a amp used as a demo at a shop?, posted on March 19, 2017 at 04:01:33
RGA
Reviewer

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Joined: August 8, 2001
IME most dealers give 10-20% off of MSRP on brand new sealed boxed items. So a used demo product where, as others have said, have had numerous people fiddling with it in store or in their homes shuould be at LEAST another 10-20% off on top.

I bought my Cambridge Audio CD 6 back in 1996 as a demo. It had the top removed and a glass panel put on it so people could see the inside - it was quite the overbuilt machine at the time and at the price. I got around 35% off list and I got well reviewed Tara Labs cables thrown in. The thing was basically on everyday for a year.

It's 2017 and that thing and the remote works perfectly. The Pink Triangle engineer created this for Cambridge Audio and it's been a rock.

I digress.

The PL is fairly popular right now which probably props up resale value because they have good marketing. But it's made in China and doesn't exactly use exotic parts.

The fact is there are a LOT of companies out there now making good tube amp makers making similarly priced Push Pull and SET amplifiers: Line Magnetic, ASL, Melody Audio, Audio Note, Cary, Dennis Had Inspire amps, Rogue Audio, Raven, Manley Labs, and probably 2 dozen others.

If I were you I would do the research and where possible the listening - pick THREE you can live with and then be a cat and patiently zero in on one for the price you are after and then pounce.

And who knows maybe you wait - find something you like better for less money.

 

Check your email, posted on March 19, 2017 at 07:21:21
AbeCollins
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.

 

RE: Depends, posted on March 20, 2017 at 09:30:04
bare
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"Primaluna Prologue Premium. I was offered about 15% off for a demo that they say was used about 6 months. Doesnt seem like that great of a deal to me ".
Nor to me either.
Audio dealers are a disapearing species.. For Reason.
Shop elsewhere or wait for the going out of business 'sale'

 

+1, posted on March 20, 2017 at 11:50:02
AbeCollins
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I'm all for supporting a local authorized dealer but bending over and grabbing my ankles, no.



 

RE: +1, posted on March 21, 2017 at 02:53:40
fantja
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Posts: 10029
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Thanks! for sharing- Abe.

 

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