'In Home Dealers' are the future?

High-End audio dealers are currently being offered "incentive pricing" by most of the manufacturers and their distributors. This allows retailers to discount prices by 20-30%, or more. There are a few retailers who refuse to budge and still demand the full MSRP even in the face of a seriously damaged economy. Possibly they purchased their inventory prior to wholesale price declines.

03-08-09: Commcat
High-End audio dealers are currently being offered "incentive pricing" by most of the manufacturers and their distributors.

That makes sense.

I've noticed an increase in home dealers and decrease in 'brick and mortar' dealers in my area.

I would think home dealers are the future, they should be able to offer lower prices vs. the 'big' store dealer because of lower overhead. This should serve them well in a 'downsized' economy. Still, I'm sure there will always be exceptions, local stores near me survive by catering to home theatre enthusiasts and wealthy audiophiles.

I am also starting to see more discounts of 20-25% off list, wonder if futher discounts will become the norm.

I was an "in home" dealer in Knoxville, Tenn. for 20 years, 74-94. I didn't hurt any storefronts because none of them were interested in selling high end. I had most of the high end brands current during that period; I didn't survive by discounting but by giving good service. I would give a better price on a complete system or overvalue trade ins but all the stores I know do that. All the brands I carry have a 40% off dealer price , I have seen some "new in box" items cheaper than my cost so the question is how do home dealers survive in this economy? I am in Louisville , Ky. where there are Home Theater dealers but no audio ones save me. I get inquires about selling outside the local area but don't do it on new equipment. I invite anyone who thinks it is a good way to make money to try it. If you want to demo equipment at a serious, not top end, level be prepared to invest , say, $30,000 in stock. this is probably very low. I have spent on the order of $12,000 on new stock and I already had an inventory that would run 3 or 4 times that to purchase now. If you think you can operate on a 15% mark up let me know and I'll close up and buy from you. If you are not interested in meeting other audiophiles and the challenge of setting up systems that reflect the taste of your customers forget about it.

TVAD
It is true. I always went to a dealer who gave me a 20% discount or more. I can't in fairness to him risk broadcasting it because his product lines may insist that he only sell at full retail. An example from the jewelry business is Rolex watches not the excellent fakes but the real ones. If you are found discounting they simply pull the plug unless they say "dump your remaining emporor line" we are intrducing the economo-Rolex it's Swiss made from all the watches we can't sell, beside they were parts made elsewhere..
I actually know that no one ever discounted JM Focal when I got mine. Now I bet you could find some sealed in box opened to show you and sold as demos.