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kt66

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iheartreverb

If your asking if the stock on the wall has been bought cheaper for display purposes then the answer is no. If a shop is selling something “ex demo” then it has usually paid less as it’s been demo’d/ used/ damaged at the manufacturer 

guitars4you

As an overview, if a dealer sells a product at a lower price, as ex-demo, then it is generally the dealer that stands any reduction in profit as his trade price is still the same for a new shiny boxed model, or demo

However sometimes the manufacture might offer an incentive to the dealer to 'run a demo' model - As such a lower trade price - Or indeed the dealer might propose such a policy on the odd product with the supplier/distributor 

However I have also known it work that the supplier might do a show or two, then offer show stock to a dealer, as demo stock, at a preferential rate - ie stock for the big show in Birmingham in Feb - Every one tries the manufactures stock for 2 days and at the end of this, certain stock might be offered to a dealer reduced


Another example might be on say a product like a Helix - A dealer might run the same item on display for 6 months or a year, so keeps new boxed stock for sales at regular web site prices, therefore keeps the demo item as required - then when mk2 is released he then will sell on his demo model accordingly at a reduced price

No hard fast rule for any dealer/supplier on any brand/model

Hope that makes sense

Whitecat

When I worked in the camera retail industry almost all the big brands gave dealers a “demo discount” on one unit out of an order of a certain size. Usually 5-10% depending on the brand and the product (and generally closer to 5 in most cases). 

The retailers usually just rolled the average across the cost price of all the units in stock so there usually wasn’t a cash incentive to take the floor model. Sometimes you could get extra free stuff instead though if you were “forced” to take it. 

Not that this is relevant to guitars at all.

kt66

thanks everyone, my only retail experience was in expensive HI-FI, where this was the norm. Normal margins were about 35% but 50% for the dem item