Rotel RSX 1057 - Discount?

[CPALIU]

Are dealers charging only msrp for this unit? I just called a local shop that is authorized to carry Rotel and the sales guy said they arn't adjusting the price any because of demand and the unit being so new.

[ICEMAN70]

I Got over 20% off my unit. The MSRP is $1999 Canadian up here.

[jim777]

Be careful, most dealers won't lower a price on the phone.

[Elvis]

Are dealers charging only msrp for this unit? I just called a local shop that is authorized to carry Rotel and the sales guy said they arn't adjusting the price any because of demand and the unit being so new.

I'd tell em' to go fly a kite.

[shadow]

That will show em. :roll:

[Elvis]

That will show em. :roll:

If Rotel cares about sales and the dealer cares about a bottom line and enough people say bs,then yep,that will show em'.

I have a firm policy,you won't deal with me,I won't deal with you.10% should be minimum,even from a hardcore dealer.

[CPALIU]

so 15% would be a resonable amount to get?

[ICEMAN70]

so 15% would be a resonable amount to get?

Yes. Between 15%-20% is very resonable.

Good luck.

[nikos]

The markups are 40% + so 15%-20% is very reasonable IMHO.

especially if you're a repeat buyer and spend tons of cash there.

I'm still waiting on mine...its been 2 months now. I'm very patient because I got a great deal on it....but I questioning myself if the discount was worth it

They claim the unit is/was on backorder...should have it by next week sometime
(famous last words)

Nikos

[shadow]

Most people who buy $1300 receivers do not spend a "ton of cash" at a dealer. BTW, exactly from what source do you get the 40% markup statement?

[shadow]

If Rotel cares about sales and the dealer cares about a bottom line and enough people say bs,then yep,that will show em'.

I have a firm policy,you won't deal with me,I won't deal with you.10% should be minimum,even from a hardcore dealer.

Discounts like every other economic transaction will be decided by demand and supply. If a dealer can sell every 1057 for list price, more power to him. Rotel has no worries about its sales since virtually all its products sell great with little or no discount. Obviously, the potential market for Rotel is reasonably happy with the offering prices they get. Hopefully you can get your discount so you buy Rotel, but I doubt your dealer will go broke sitting on unsold inventory since plenty of people think its a very good product at a fair price.

[Elvis]

Discounts like every other economic transaction will be decided by demand and supply. If a dealer can sell every 1057 for list price, more power to him. Rotel has no worries about its sales since virtually all its products sell great with little or no discount.

I hear ya,more power to em',they just ain't gonna sell em' to me.Its great Rotel has no worries about its sales,that makes them one of the few companies on the planet.I also don't know anyone thats paid full retail,or I'd tell em' to find someone that wants to sell gear.

[nikos]

Most people who buy $1300 receivers do not spend a "ton of cash" at a dealer. BTW, exactly from what source do you get the 40% markup statement?

Well when you buy a set of speakers....a receiver...maybe an amp and dvd player etc.... it adds up.

I was second doubting myself when posting the 40% markup...just because its a sensitive subject that affects people that do this for a living. Blowing someones trade secrets is not fair or cool. If you're shopping for a discount product you can shop around and haggle quite a bit...but if you're getting the service and support...its worth every penny The dealers and sales people have to feed their families and pay for the showrooms etc that we enjoy and demo.

Nikos

sorry if I offended anyone in the meanwhile

[gd]

Discounts on Rotel gear can be found, but it's not guaranteed -- it's very dealer-dependent... the two Rotel retailers here in SF won't go below MSRP, at least not for me... and I've never been in the fortunate position to buy extra gear at the same time to fuel the discount... I understand the leverage, but I can't play.

So no Rotel HT for me... no biggie, there are other makes.

I did buy my 900-series Rotel integrated, and later, a CD player at one of those places over 10 yrs ago... tried for discount, walked twice, but paid MSRP -- mostly because I really wanted the Rotel, and also because I could readily afford it at the time... no regrets.

Whatever the exact number is, it is certain that markup on consumer electronics is substantial... conversely, low-volume boutiques that carry Rotel have overhead that is also relatively substantial (commercial rent in SF is insane)... but trying to determine those exact numbers is a waste of time.

By all means, pursue what you like for the price you want... but don't assume you're entitled to anything... like I said, plenty of other makes out there.

[IntegrateMe]

Markup on consumer electronics varies greatly.

Classic example; Circuit City sells the Panasonic 50" Plasma (60U Series) for around $3100. I work for the largest custom (no retail, projects only) dealer in the country and my cost on that same plasma is $2765.

Is that a substantial margin?

Barry

[RebelMan]

Markup on consumer electronics varies greatly.

Classic example; Circuit City sells the Panasonic 50" Plasma (60U Series) for around $3100. I work for the largest custom (no retail, projects only) dealer in the country and my cost on that same plasma is $2765.

Is that a substantial margin?

Barry

The retail price (MSRP) on the TH-50PX60U lists for $3700 which is about a 34% markup from your cost. Most consumer electronics are marked up (from dealer's cost) somewhere between 40%-50%. Since large consumer electronics chains sell large volumes of the items they carry, and to remain competitive, they often discount their products around 15%-20% from the start. However, given that most boutique dealers carry products that other neighboring dealers do not they can monopolize the local market which some people might find objectionable. It stands to reason that people should come to expect a reasonable 15-20% discount on all electronic merchandise but when some dealers that are in more control of their market fix their prices they tend to appear somewhat stingy when only a 10% discount is offered if at all. A $335 cost difference (profit margin) is not exactly what I would call substantial as it amounts to ~16.2% off MSRP which falls between the 15-20% discount range, but others might.

[IntegrateMe]

The other distinction to make is whether the product is being sold in a retail environment or in a custom environment.

As a custom dealer, if someone simply calls me up and asks for a product, I have no reason not to offer a discount, since no resources are expended other than a few minutes of the purhasing agent's time.

In general, a 35% margin is required to successfully run a custom business and make 1-3% on the back end after vans, insurance, occupancy, taxes, misc. parts, salaries and other expenses are paid for. Most custom dealers do between 2-8 million a year (25-30% of which is generated by labor/project management/programming) so if you work the numbers, it becomes clear that it is a tough ship to run.

Retail operations operate by different rules.

[RebelMan]

The other distinction to make is whether the product is being sold in a retail environment or in a custom environment.

As a custom dealer, if someone simply calls me up and asks for a product, I have no reason not to offer a discount, since no resources are expended other than a few minutes of the purhasing agent's time.

In general, a 35% margin is required to successfully run a custom business and make 1-3% on the back end after vans, insurance, occupancy, taxes, misc. parts, salaries and other expenses are paid for. Most custom dealers do between 2-8 million a year (25-30% of which is generated by labor/project management/programming) so if you work the numbers, it becomes clear that it is a tough ship to run.

Retail operations operate by different rules.

If your labor costs were included and limited to the MSRP of the products you sold for custom installations then I would be inclined to agree but I doubt they are. I believe most electronics businesses run by the same set of rules and simply differ on scale.

[CPALIU]

Does anyone have any heat issues with their 1057? I have nothing on the sides of my 1057, but only about 3 inches of clearance above the 1057. Is this going to be a problem for me later down the road? The receiver does get fairly warm, but not hot enoughg where I can't keep my hand on it.

[bzrk]

Ik got 600 euros of my 1077 and about 400 euros of my 1068 and a bunch of free high quality silver(ish) interconnects.

First time buyer there. Right now my 1068 is broken... so i hope aftersales is just as good as the initial price

[ICEMAN70]

Does anyone have any heat issues with their 1057? I have nothing on the sides of my 1057, but only about 3 inches of clearance above the 1057. Is this going to be a problem for me later down the road? The receiver does get fairly warm, but not hot enoughg where I can't keep my hand on it.

My 1057 also gets very hot. And i am not even using the AMP's from the receiver. I had the center and the surrounds hooked up to the 1057 but decided to run all of the speakers from the RMB1075. The RMB-1075 is another story though. It runs very cool. I run the 1075 very hard and still it only just gets little warm. Very nice amp.

Also i don't think 3" clearance would be enough from the top. Because you have no heat escaping from the top. I have mine out in the open in the middle rack and still gets hot. I wouldn't put this receiver in a tight place, you might run into problems later on.

cheers,