lets say that same $600 Emotiva Prepro were sold through traditional retail sales distribution channels. What would the price then be? -probably $899 instead???
That considered, on the other AV receiver side of the market, its actually pretty amazing what relative overall sound quality they can get from a $600-$1000 (non-direct sales, standard retail distribution and associated percentage mark up) AV receiver -which also includes power amp section- in comparison! I mean what kind of profit would be left over, after all the proper channels get paid, the parts costs get factored, the factory overhead n distribution routs costs are considered, advertising dollars calculated, and retail costs added, what profit could be left in that?
Well I know retail markup is typically approximately 30-40% over wholesale on these type of products, from past history experience. So you do the math on a $899 AV receiver, considering all the likely costs n markups along the way!
I figure the Emotiva is likely working on similar price margins as any large scale Receiver manufacturer, in comparison. I mean how far different could profit numbers be at that price range?
That considered, on the other AV receiver side of the market, its actually pretty amazing what relative overall sound quality they can get from a $600-$1000 (non-direct sales, standard retail distribution and associated percentage mark up) AV receiver -which also includes power amp section- in comparison! I mean what kind of profit would be left over, after all the proper channels get paid, the parts costs get factored, the factory overhead n distribution routs costs are considered, advertising dollars calculated, and retail costs added, what profit could be left in that?
Well I know retail markup is typically approximately 30-40% over wholesale on these type of products, from past history experience. So you do the math on a $899 AV receiver, considering all the likely costs n markups along the way!
I figure the Emotiva is likely working on similar price margins as any large scale Receiver manufacturer, in comparison. I mean how far different could profit numbers be at that price range?