View Single Post
  #26  
Old 02-26-2018, 10:38 PM
PHC1 PHC1 is offline
Guest
 
Join Date: Apr 2009
Location: Pa
Posts: 23,609
Default

Typical profit margins for automotive dealers run in the 1-2% for the budget cars and stretching to 10-15% for the luxury automobiles requiring a multi-million dollar investment into top notch sales and service facility if you are even dreaming of selling a Porsche, BMW, Lexus, Mercedes, etc... A Ferrari dealer required to bring a facility up to standards will spend $5M-$10M or more just to be able to sell more cars and have some chances of getting more inventory/desirable models than the dealer who is stalling on that "upgrade"!

Grocery stores profit margins are in the 1-3% also requiring multi-million dollar investments.

Here we have audio dealers which often do not even take care of setting up their products properly, bare rooms, listening to a pair of speakers in a 12x14 room with 15 other pairs lined up against the walls of that same room. When I mention that sir, "your room sounds like crap" and I can not enjoy or hear this pair of speakers like they are supposed to perform, the answer is "I know".... What???

We as customers allow these practices to go on with the audio dealers who expect 30-40% profit margins and do not even take care or pride in the stuff they sell! I don't know what they are smoking these days thinking they can successfully run a business like that but the trend is pretty clear, they are dropping like flies. If they can't make it with those profit margins, something has to be very wrong with the picture. Turning off customers with poor demo rooms and representation effort and after purchase support does not do any good to the dealer or the manufacturer who has entrusted the dealer to represent their product.

Manufacturers should seriously think about that. Rant over.

Last edited by PHC1; 02-26-2018 at 10:41 PM.
Reply With Quote