I personally would not want to be selling anything in an environment where the customer insists that he only pay "X" percent over cost because of what he knows from the internet.
Most resellers fear the educated consumer!
what would you expect given the plethora of available info AND a shrinking market segment?
imo resellers need to diversify and/or have enough product lines that allow them to move volume.
Most sucessful resellers I know of make 90%+ of their profit on AV purchases and accompanying install labor
This should allow for better pricing on 2 channel hard goods
...besides, of the AV crowd, many of them are not as educated therefore they can more easily be fleeced of cash through magic wire sales. evil imo, but buyer beware.
There are purchasing groups resellers can join that allow them to get volume discounts which should translate to more competitive pricing while still making a profit.
Also, I would think a reseller or reseller network should be able to provide online services where the customer can buy direct online and have the product drop shipped directly from the manufacturer for a further discount...this would alleviate inventory stocking costs and therefore should translate to no loss of profit if managed properly.
imo, the reason most B&Ms go out of business is they (and manufacturers!) are unwilling to change outdated business models and that is not my problem. Adapt and overcome
Whether it's Music Direct or Audio Advisor....where I can buy new open box specials, dealer demos, returns, etc... for as much as MSRP -35%, Manufacturers such as McIntosh offering generous price discounts for trade-in/trade-up programs, etc... imo there's enough profit to go around if the manufacturers and dealers work together.
