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When do dealers give up on stale inventory?

bigtone23

Member
Messages
6,782
Typical margins at MAP on a guitar is closer to 20-30%, not 50%. It doesn't make inventory sense to hold onto something after a year. I would offer the non eBay/PayPal payment at 20% off. Let the offer stand until the store decides to get real.
 

majorminor

Gold Supporting Member
Messages
1,622
It's a long walk from NH to KY! One on ebay countered my best offer with a 10% off, I'm thinking about calling them and asking if they'd do another 10% if I paid by check which would be the same for them after paying ebay fees if I did if there.
Seems like this should work if you can find a way to buy the guitar outside of Ebay since their fees are 10%, and Pay Pal is what now? another 3%?
 

PatrickE_FenderADV

Silver Supporting Member
Messages
28,332
I think you're giving WAY too much credit to most music store proprietors.
It's the standard distribution model. The numbers might be slightly off depending on the industry... instruments vs consumer electronics vs computers etc. I am in IT distribution and the typical MFR margins are over 45% before SG&A.
 
Messages
23,963
My recommendation is to want something else.

Guitars, really nice guitars outnumber actual guitar players by a serious ratio; the ratio is just going to get more and more crazy. There is an immaculate used one in another color available somewhere else for half the price. Just get yourself to "want" that one, instead.
 

fisticuffs

Member
Messages
5,401
It's the standard distribution model. The numbers might be slightly off depending on the industry... instruments vs consumer electronics vs computers etc. I am in IT distribution and the typical MFR margins are over 45% before SG&A.
Some may be, most are not. (I have price lists in front of me from several dozen guitar makers). The "standard" model is not a standard at all. I can have a guitar at 20 points and one at 80. Amps all over the board, pro audio etc. It's a wide range and rarely 45 points.


Make an offer, if they accept it great, if not well how bad do you want it. There is a market in play here, not just what you think you should pay for something. Sounds like the market is saying it's time to drop the price though.
 

dud3r

Member
Messages
27
GC just had a sale clearing out there Musicman gear. I bought a Reflex for $1200. Originally retails for $2200. Could actually make money by selling it but that's not going to happen. One of the best guitars I've played.

I'd negotiate with them . If it's a must have type of deal bite the bullet. You can make more money. The only thing I regret about my reflex is they had already sold all the blue finishes. Only had black and white.

Sent from my SGH-M919 using Tapatalk
 






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