What are the usual percentage mark ups for a (guitar instruments) retailer/ seller? I suppose it could be any percentage that they want to charge. I was looking at a guitar on the Bay that appears to be a retailer selling their stock on the Bay. I've looked at the guitar a few times but haven't made a bid to buy it ( it's a buy it now item......not an auction). Now I've received an 'offer' price reduction of 23% off the original price. I still may not purchase it.....but it begs the question what difference in price from their supplier to the customer.
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They can also get instruments on 'splits', for instance a 30/60/90 split where say they do a 9k order, they pay £3k after 30 days, £3k after 60 days and £39 after 90 days.
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Even if I found the same guitar for sale in a local music store (post lockdown)......I don't think that I would manage to negotiate
a 23% reduction.
If you get offered a deal as an incentive to pull the trigger all well and good, but avoid getting into the mindset that unless the seller gives up ALL the margin you are not buying . That margin is the thing that must be used for paying rent and wages and other overheads . Without it a shop basically shuts down never to be seen again.
Many guitars have a re-sale value. Some you'll never want to sell.
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It really depends. Sometimes you get 40% sometimes 20%, sometimes just 10%. Most of the factory items (tuners, strings) as well as guitars offer a volume discount. Having said that, most of the time a discount of 20% is significant. It signals a serious attempt to move the guitar.
That’s why some of the mail order companies can offer lower prices, they can bulk their way into a better pricing, and reduce overheads on retail space. Incidentally, this is not meant to be an inditement, just an observation.
If you are talking about trade ins or consignments, it’s a different story. Some find they attract lower margins, others seem to be able to work it, I suspect when there is a good system in place to help turn around or there are sunk costs in marketing, consignments do make sense.
Terence
Many guitars have a re-sale value. Some you'll never want to sell.
Stockist of: Earvana & Graphtech nuts, Faber Tonepros & Gotoh hardware, Fatcat bridges. Highwood Saddles.
Pickups from BKP, Oil City & Monty's pickups.
Expert guitar repairs and upgrades - fretwork our speciality! www.felineguitars.com. Facebook too!