General Forum

Re: Negotiating with a dealer

jk1002 — Mon, 20 Apr 2009 19:37:37 GMT

I think there is some space for negotiation if you buy a larger portfolio of products and have no custom installation.

For custom installation, I would take a close look how he assembles the numbers and if he takes responsibility for the execution. If I feel it's done sloppy I would certainly try to negotiate and lower .... is all about how it flows .....

I bought a BV8 with BC2 and as my dealer could not provide me the BC2 MK2 which was pending and still wanted to sell me a package he took few percentage off. I felt amount was fair so I took it without further nagging.

I am still very happy with that purchase even now with the price reduction I am not upset .....

Re: Negotiating with a dealer

markdavis6 — Mon, 20 Apr 2009 13:37:41 GMT

Thanks for the answers everybody - really appreciate getting those thoughts from a dealer. Will hopefully finalize something tonight...

Re: Negotiating with a dealer

TripEnglish — Mon, 20 Apr 2009 12:15:15 GMT

Mark,

I'm a B&O dealer, so I'll give you my perspective.

The way you've gone about this post, I assume that you're a pretty reasonable guy to deal with. When a client (even one who doesn't have past purchases to leverage) is reasonable and candid, negotiations are generally quick and smooth. I'm likely to tell someone exactly what I can and can't do. As the saying goes, you catch more flies with honey.

As for the raw numbers, there is very little profit in our industry. We have to manage jobs very carefully to be sure that our clients get the best service and we make enough money to remain in business. Depending on sales, a few percentage points could be the difference between profit and loss. Being open with your dealer is the best way to save where you can. The best savings come not from discounting, but altering the plan to make more sense. If 9s are more than adequate and you've requested 5s, than a smart product choice could save you $10,000. A discount may only be a few hundred.

Do not also think that labor is a piggy bank waiting to be cracked. An installer's time, whether in-house or subcontracted, is a fixed cost just like a speaker. A dealer who doesn't present the value of a good installation either can't provide one or won't be in business long. Our products are great, but what makes my stores competitive is how professionally we execute the installation. Pre-wire, termination, mounting, programming, testing, wire-dressing, and return visits for fine tuning are time and labor intensive and are crucial to a robust system.

The most honest appraisal I can give you is that there's no way to save more than a token amount without actually cutting products. There's simply not a profit margin like there is in furniture. Most dealers will give you a break, not for your loyalty, but for your attitude in dealing with them. Custom AV can be tricky and complex and clients who are easy to deal with get discounts, freebies, inside scoops, etc. Ones who are demanding and impatient are lucky to get a return phone call after the job is complete. Remember that it's not the top-line dollar amount that gives you leverage, it's your attitude combined with the profitability of your business. Don't over-value a small savings.

Best of luck. You can PM me if you'd like to go more in depth.

Re: Negotiating with a dealer

birgerbum — Mon, 20 Apr 2009 11:33:07 GMT

Hi markdavis6

First thing is to win the phycscological game make the salesman like you if the price is too high in your opinion make a little fun out of it ex you have a bad heart and he can risk that you are collapsing and he have to call 911 which will be bad for his renomm'e.Second I guess you too has financial crises in the US everybody is "hungry"

regards

jan

Re: Negotiating with a dealer

beolife — Mon, 20 Apr 2009 09:14:00 GMT

Well may I say welcome first.

To get a discount will depend upon a number things.

does the dealer want your business.

Are you looking to just walk away & install the goods yourself.

Will you want the dealer to integrate your purchase with your other equipment.

Will it require any specialist work.

Have you communicated to the dealer the extent of your possible purchase power.

These are just some of the possible points to consider when negotiating a discount.

Good luck

Negotiating with a dealer

markdavis6 — Mon, 20 Apr 2009 08:35:05 GMT

Hey guys - I've spent a fair amount of time lurking - first time posting... was curious about shopping at Bang Olufsen - I spent about $60,000 at Bang a few years back, so I have a relationship with the store. I'm close to making a decision to purchase a Beovision 7 without the DVD at their reduced price - seems like good value (not really, but everything's relative I guess) - and a few other things - maybe spending another $25,000...

Is there much room for negotiating on prices? Or is the price the price? They've quoted me a high-price on installation - which I presume they'd come down on - was curious if anybody had ideas on negotiating with them...

Any help is greatly appreciated... Thanks, Mark.