in Search
Untitled Page

ARCHIVED FORUM -- April 2007 to March 2012
READ ONLY FORUM

This is the first Archived Forum which was active between 17th April 2007 and 1st March February 2012

 

Latest post 06-09-2009 5:19 AM by Jammy61. 23 replies.
Page 1 of 1 (24 items)
Sort Posts: Previous Next
  • 06-02-2009 1:37 AM

    Discount negotiation on new B&O equipment in Australia

    Hello all

    Has anyone had sucess in negotiating price of new B&O equipment?

    If negotiation is not possible isn't it anti-competitive price-fixing behaviour (illegal in Australia)?

    Your experiences are appreciated.

    Kind regards
    Adrian

  • 06-02-2009 3:21 AM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    'Has anyone had sucess in negotiating price of new B&O equipment?'

    -I've heard of added products as part of negotiations, but you're required to spend a bit...

    'If negotiation is not possible isn't it anti-competitive price-fixing behaviour (illegal in Australia)?'

    -No, for a start it is a manufacturer selling their own products in their own stores, so they are not competing with anyone and can sell their products for any price they like. The market then determines if that price is acceptable, as well as other factors such as Supply/Demand. It is illegal only when two different companies fix their prices eg petrol, Shell and BP collude to sell petrol at exactly the same discounted price to rid them of competition from Mobil.

     

    My B&O: 2009 Catalogue and Pricelist

  • 06-02-2009 4:25 AM In reply to

    • benjnz
    • Top 150 Contributor
      Male
    • Joined on 04-16-2007
    • Auckland NZ
    • Posts 392
    • Gold Member

    Re: Discount negotiation on new B&O equipment in Australia

    I heard AMEX customers get discounts of *COUGH %, makes having an Amex to buy your B&O worth it.

  • 06-02-2009 7:45 AM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    i think this is pretty much how it works. i say that because i've heard it from the horses mouth; when i say horse i mean a dealer and not just one but several.

    bang & olufsen sell the units at a particular price to dealers in the UK. this price is the same to all dealers. the dealers then add on there profit margin. this profit margin varies from city to city and also within a city.

    i bought a beosound 5 last week. most dealers were selling it for £4000, i found a couple that sold it for £3850 and finally found one that sold it for £3500 so i bought it off him. all these dealers included delivery, basic setup and initial demo of how to use it but not a fancy installation which was fine by me. i've also negotiated the price off a beovision 5 from one dealer in the past.

    if you are prepared to ring around the country and drive a hard-bargain rather than being too 'sacred and english' about the whole issue of price you will do ok. if you get scared when the dealer says no initally then you won't get the best price. the other thing is to do your research and find out how different dealers price the same product. the trick i think is doing your homework and going into the dealer and negotiating. you don;t back down in other aspects of your life when people say no initially because they're testign your resolve so why do it in a b&o dealer? one of my friends negitaied a few thousand of a new porsche and he's a rich boy so i think we shoud take a leaf out of his book.

    the dealer has family, a mortgage and a business to run whilst you as the customer should be negoitiating hard - it's about finding a healthy balance between those two 'apposing' forces. in the world of business if an individual isn't prepared to compromise to win your business and trust then they may not be flexible in other domains when it comes to servicing, repairs and support.

    i'll probably get crucified for saying this but i don't think i'm saying anything that's new or controversial but guess it's worth reiterating.

     

  • 06-02-2009 8:13 AM In reply to

    • blue2th
    • Not Ranked
    • Joined on 05-28-2009
    • Melbourne
    • Posts 33
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    as i understand it, the B&O stores in Australia are owned by B&O since a few yrs ago.  so the margin is what B&O Retail Pty Ltd want to make within their targets.

    i asked my local dealer and he said he can ask (i presume manager/someone more senior) but i didn't push him for it since my purchase wasn't 'substantial'  will try it when i'm getting some more pricey though...at least get some bits and pieces thrown in (like cable etc)

  • 06-02-2009 8:18 AM In reply to

    • Sn00py
    • Not Ranked
    • Joined on 09-18-2008
    • Australia
    • Posts 28
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    Adrian,

    I don't think the Australian dealers are keen to negotiate in this economic climate. I have spoken to a few dealers they are all only looking at RRP for their products.

    Normally, they offer 5% to 10% for their in-store demo products based on the age & model. They are usually 6 months old before you get any discounts on them.

    I don't know about the AMEX deal but if you spend $10,000 on VISA platinum card on a single invoice, you will receive a Beocom 6000. That offer is based on RRP pricing.

    You might look at buying from other B&O dealers around the world if you are keen on negotiation and achieve a discount.

    What products are you interested in buying?

     

     

  • 06-02-2009 8:51 AM In reply to

    • Jammy61
    • Not Ranked
    • Joined on 01-03-2009
    • NSW Australia
    • Posts 20
    • Gold Member

    Re: Discount negotiation on new B&O equipment in Australia

    We have been buying from B&O dealers for over 20 years in Australia and they have never given a discount.  Some will negotiate on their second hand and trade in but, not many do this now.  H

  • 06-02-2009 8:52 AM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    yes, sn00py i think you're right about the current climate. some dealers won't move off the price they set whilst others see the current climate to draw in new customers by offering incentives. depends on th dealers views and situation which has to be respected but buiying abroad in an option.

    i bought a car from a german factory and then brought it to the UK. i saved £6000 and it was covered by a worldwide 12 month warranty which i used once. if you buy B&O it should be covered by an international warranty. of course if you need support you wouldn't get that but it's a toss-up between less and doing it yourself or paying full price and having that initial support.

     

  • 06-02-2009 6:56 PM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    When the Australian stores were owned by Smorgans, the stores would take trade-ins and there was always a little negotiation with that. Smorgans sold the stores back to B&O, so in Australia we are buying direct from the manufacturer. This makes things a little more difficult, as B&O would want to protect their brand and exclusivity. Now they only take trade-ins on current equipment only, presumably then used as demo models. I don't think B&O has a Secondhand Licence (and probably doesn't want one) in Australia, so can't resell older trade-ins anymore.

    Oops, forgot..I've been offered 10% on floorstock accessories ie stands, so maybe this applies to other items???

    BTW, I went in to David Jones yesterday to look for a new jacket. While I was there, I thought I'd pop in and have a look at the B&O store in there. Well, guess what? IT'S GONE!! Any Melbournians know where it went?

    My B&O: 2009 Catalogue and Pricelist

  • 06-02-2009 7:08 PM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    Thank you all for your responses so far.

    I was not aware the stores were B&O owned - that makes it rather less likely to negotiate.

    It's an unusual thing to be spending $30k and have the "cheek" to not include a single sync cable or installation (another $300ish).

    I've never dealt with B&O previously and for a "premium lifestyle / luxury" brand it's a very odd way of going about it.

    Price is not entirely the issue but the experience...

     

     

     

     

  • 06-02-2009 7:28 PM In reply to

    • blue2th
    • Not Ranked
    • Joined on 05-28-2009
    • Melbourne
    • Posts 33
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    DJs is refurbishing the whole of level 2 and the mezanine floor.  As a result, B&O have a disappointingly small corner on Level 3 (turn left as you get out of the elevator).

    I asked the Cllins St store lady how the DJs arrangement works, if B&O have to pay rent.  She said not entirely sure but she believes DJs gets a % of sale or something like that. 

    Anyone know if previous sales on electronics have included B&O?

     

    PS: DJs sale on TVs is footnoted to excl B&O - so expect the same to apply when other electronics are on sale.

  • 06-02-2009 7:28 PM In reply to

    • marcus
    • Not Ranked
      Male
    • Joined on 04-16-2007
    • Adelaide, South Australia
    • Posts 50
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    One of the seven Corporate Identity Components (CICs) of Bang & Olufsen, first published in 1972, concerns Credibility.

    "... Bang & Olufsen's aim is to develop credibility at its maximum by honest communication. No over-claiming. Full respect of human efforts and ideas invested into products. No discount. No obsolescence. New products' births and deaths must be carefully planned in a continuous process of development, not as an occasional happening. Products must be sold at their value, for what users feel they get from them."

    The full Credibility component is somewhat longer, but I have extracted the section relevant to the current discussion.

    I read this to mean that B&O does not discount, ever, because to do so would show disrespect to the designers and builders of their products.

    Prices do move in time (usually upwards!) but remain remarkably consistent through each product's (unusually long) life. Few manufacturers offer the same product longevity or support, and this must surely come at a price. And we, dear customers, are the ones who ultimately pay.

    I don't know if these CICs are still B&O's corporate mantra, or whether they have fallen by the wayside in these gloomy times of intense competition, downsizing, rightsizing, outsourcing and partnering. I hope they haven't.

    Regards

    Marcus

  • 06-02-2009 8:04 PM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    Hi & welcome,

    I have been an Australian customer of B&O since the mid-Seventies; I am a cautious buyer and the people in the stores know I take a long time to make my decision.  They have always ben courteous and informative and spent long hours in discussions with me - in other hi-fi or electronics stores you never get that kind of service.

    I have received many offers of ex-shop-floor items, and also buying incentives: I think on the night of the launch of the Beolab 3s all buyers were given a phone.  I have only ever taken up one of those shop floor discounts.

    I have received a number of gifts along the way such as a pen, several bottle openers, B&O published CDs, an airline seat headphone jack, house magazines and now the magalogue. 

    I have been offered good service over my B&O Wireless purchase -- at one stage I think I had 5 or 7 units in my house as we tried various configurations over a period of two months while we tried to solve the "problem".  And this was to support the purchase of one (1) additional receiver.  

    When I was in the UK I had dealings with their Newcastle store.  same courtesy, same information and support.  However I will say I think that store was better in their innovation of creating a brand with their demographic: I went to many after hours store functions: a salsa night, two champagne tasting nights, an Audi test drive night, and a Steinway recital night.  

    [ Unfortunately I missed the famous speaker shoot out night that was organised with Peter ... I had my nose pressed against the window whilst waving but obviously the volume was so loud that no one heard me :-) ]

    I have been very pleased on my return to Melbourne to see that our stores are starting to do the same kind of event: we have had a Beophile night at the Camberwell store, and an MSO recital night and a wine tasting night at the Armadale store -- both accompanied with goody bags.

    To me these activities and support are what helps justify the maintenance of a price umbrella by the stores.

    The positive side of that umbrella, is that in Australia you can sell your equipment on eBay for more than you would get it for in the UK :-)

    The flip side is it is more expensive for me to buy it :-( 

    First B&O (1976) was a Beogram 1500 ... latest (2011) change has been to couple the BL11 with the BL6Ks *sounds superb*

  • 06-02-2009 9:24 PM In reply to

    • Matthew
    • Top 500 Contributor
      Male
    • Joined on 06-01-2009
    • Melbourne, Australia
    • Posts 99
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    As a relative new comer to B&O from a purchase perspective (but long time fan of the products) I would echo Elephant's commments on the Melbourne stores' relationship with us, the customer.

    Apart from the MSO recital at the Armadale store, I was fortunate enough to attend a Schubert evening at the recently opened recital hall in Southbank, courtesy of the DJ's B&O store, who are supporters of the recital hall - I understand they've provided the BV8's you'll see in the foyer areas.

    So whilst there may be a degree of inflexibility when it comes to price, there are other benefits that make the ownership experience well worthwhile - quite apart from the products themselves. How many electronic or hi-fi stores send you a hand written thank-you note for buying their products or a personally signed Christmas card?

    Cheers,

    Matt

  • 06-07-2009 9:20 PM In reply to

    • Hooper
    • Not Ranked
    • Joined on 05-01-2007
    • Cato Neimoidia
    • Posts 17
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    Adrian,

    Having just purchased a B&O set-up (BC2+BL6k+BL2)  less than a month ago from a B&O store in Australia, I can tell you that no discount was given (not even when I brought in the big guns (my father) who always seems to haggle himself into a discount). The sales consultant told us that B&O doesn't offer discounts, which is something I already knew but you know, it never hurts to ask.

     

  • 06-08-2009 12:21 PM In reply to

    • Dude1
    • Top 500 Contributor
      Male
    • Joined on 09-18-2007
    • London
    • Posts 189
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    B&O is wholly owned by DK and the policy is no discounts.

    The dealerships do however aim to satify consumers with some trade ins of exisitng products or used product placement within actual dealerships  and leaving negotiations open to the seller and buyer - this is almost unheard of.

    Discounts generally apply to demonstration items (that are on the floor for a designated time period) or items that need to be cleared - however sometimes.....exceptions are made.. :)

    B&O aims to reward its loyal customers in Oz with nice evenings for all to enjoy and exclusive outings and some free gifts.  For some LARGE orders...there is always room for movement in some areas.

    Hope this helps.

    Policy is also to remove some DJ stores, that are not operating profitably.

  • 06-08-2009 8:47 PM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    blue2th:

    DJs is refurbishing the whole of level 2 and the mezanine floor.  As a result, B&O have a disappointingly small corner on Level 3 (turn left as you get out of the elevator).

    I asked the Cllins St store lady how the DJs arrangement works, if B&O have to pay rent.  She said not entirely sure but she believes DJs gets a % of sale or something like that. 

    Anyone know if previous sales on electronics have included B&O?

     

    PS: DJs sale on TVs is footnoted to excl B&O - so expect the same to apply when other electronics are on sale.

     

    One of the benefits of buying from David Jones is the access to the promotional 'interest free' periods they have now and then

    My B&O: 2009 Catalogue and Pricelist

  • 06-08-2009 9:40 PM In reply to

    • PentaIII
    • Top 500 Contributor
      Male
    • Joined on 04-26-2007
    • Australia
    • Posts 83
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    Dude1:

    B&O is wholly owned by DK and the policy is no discounts.

    The dealerships do however aim to satify consumers with some trade ins of exisitng products or used product placement within actual dealerships  and leaving negotiations open to the seller and buyer - this is almost unheard of.

    Discounts generally apply to demonstration items (that are on the floor for a designated time period) or items that need to be cleared - however sometimes.....exceptions are made.. :)

    B&O aims to reward its loyal customers in Oz with nice evenings for all to enjoy and exclusive outings and some free gifts.  For some LARGE orders...there is always room for movement in some areas.

    Hope this helps.

    Policy is also to remove some DJ stores, that are not operating profitably.

    I wonder how loyal you have to be to actually get invited to anything...

    My local store was fantastic enough to get me a Serene with a whopping $75 AUD discount.  The problem with that was when I got home and opened the box and saw the phone it was scratched in many places.  I called my dealer and they said that I got the discount because it was not new.  Would have been nice if they had let me in on that detail.

  • 06-08-2009 10:12 PM In reply to

    Re: Discount negotiation on new B&O equipment in Australia

    I would have taken it back....

    My B&O: 2009 Catalogue and Pricelist

  • 06-08-2009 10:33 PM In reply to

    • Matthew
    • Top 500 Contributor
      Male
    • Joined on 06-01-2009
    • Melbourne, Australia
    • Posts 99
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    It's my understanding that, provided you already have a DJ's store card, you have the option to purchase B&O products through DJ's on terms of up to 2 years interest free at any time. Extended periods are sometimes available depending on the promotion - but as always, you'll need to check the fine print.

  • 06-08-2009 10:55 PM In reply to

    • Dave
    • Top 50 Contributor
    • Joined on 04-17-2007
    • Brisbane, Australia
    • Posts 2,328
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    Matthew:

    It's my understanding that, provided you already have a DJ's store card, you have the option to purchase B&O products through DJ's on terms of up to 2 years interest free at any time. Extended periods are sometimes available depending on the promotion - but as always, you'll need to check the fine print.

    i advise against this though. I was charged an account establishment fee per transaction, and for 4 years (48 months) you pay $3 per month account keeping fee > interest free? no such thing.

     

    “Quality is never an accident; it is always the result of intelligent effort.”

    Your health and well-being comes first and fore-most.

     

     

  • 06-09-2009 12:29 AM In reply to

    • Corvin
    • Top 500 Contributor
    • Joined on 04-16-2007
    • Australia
    • Posts 124
    • Founder

    Re: Discount negotiation on new B&O equipment in Australia

    I've used their 5 year interest free offer a couple of times for my B&O purchases. The $2.95 monthly accounts fee is not really of concern to me in the whole picture.

    I was not charged an establishment fee on either occasion!

  • 06-09-2009 12:33 AM In reply to

    • Matthew
    • Top 500 Contributor
      Male
    • Joined on 06-01-2009
    • Melbourne, Australia
    • Posts 99
    • Bronze Member

    Re: Discount negotiation on new B&O equipment in Australia

    Yes, that's true Dave - I was charged the same. But I guess it depends on the size of the purchase and your personal financial circumstances as to whether it's worthwhile. For me it worked out to be a very cost effective approach. But you're right though, it's certainly not 'free'.

  • 06-09-2009 5:19 AM In reply to

    • Jammy61
    • Not Ranked
    • Joined on 01-03-2009
    • NSW Australia
    • Posts 20
    • Gold Member

    Re: Discount negotiation on new B&O equipment in Australia

    Over the years we have been invited to many launches and promotions.  The favourite for me was the opening of the 75 years exhibition in Sydney.  We caught up with most of the dealers we have passed through and had a look at some fascinating new ideas and the old.  My husbands liked the Blended Scotch tasting at our Willoughby store.  Freebies were 3 minatures of Chivas Regal Blends(a friend drove him home) we still have them on our bar.  The launch of the Avant 32 was good too(I ate the chocolate Avant.  Too good to waste).  You may not receive many discounts but on the whole they look after their loyal customers.  Our nearest store(Willoughby) is an hour and a half away.  One of the staff lives local to us and will look in and pick up items to return for repair and also offer great advice.

Page 1 of 1 (24 items)