I'm sure it depends on many factors. Especially in a normal economy.
Times are a little different now.
Most businesses operate on credit. When the sales are slow, the HELOC is closed, the credit card limits reduced and the savings are being depleted....a store might have to discount certain items as if they were a Compton foreclosure just to keep things rolling through tough times.
If the store (and owner) are debt free and flush with cash, they can scoff at your requests for a discount. Of course, this has more to do with the hubris of the owner/salesmen, rather than their lack of economic comprehension. I have a feeling that these stores are more the exception than the rule.
That's just the way it works when you unwind a hyper-leveraged economic system...and that's what's going on now just in case you hadn't noticed.
I expect to see many audio dealers/manufacturers chase the market down (with their discounts/pricing) just like the homeowners...sometimes to the point of bankruptcy.
Should the dealer have to eat it all?
No...absolutely not. The manufacturer might want to wake up to what's going on also and cut the dealer a retroactive discount.
If you really want to see how cheap things *really* are currently. Just ask any dealer that is a buyer of used equipment what they'll pay YOU for a piece of your equipment if you're not intending to trade up and just want to sell.
They don't *want* anymore inventory.
They *need* cash.
Dominoes anyone?
