Now I know there are supposed to be quite a bit of year end clearance sales of last years stock, but I tell ya, I'm gettin kinda impatient!
Even P.E's new sales flyer isn't offering much of anything worth looking at or at least in the way of major discounts.
Replies (4)
MrBrownstone on 01/13/2006 13:51:48
I wouldn't hold your breath.
Since 2000, the car audio environment has changed dramatically. Stores used to purchase DOZENS more products than they needed and move them at low margins. It was a way to get people in during an off time.
These stores have learned, however, that they are selling themselves short for later in the year, as well as, preconditioning their customer base to look for and only accept the rockbottom price. From this, it just doesn't pay long-term to have a whole bunch of equipment lying around and not going anywhere.
Manufacturers have been caught with loads of equipment that they can't move either. Stores no longer take advantage if high discounts on LAST YEAR'S wares. Because of that, manufacturers have employed Just-In-Time production whereas they are meeting demands, but not having a great deal of stock in their warehouses.
Also, many manufacturers are utilizing wholesale distributors. This is how the internet sellers have become prominent. If the manufacturer had to deal with orders of 3 subwoofers, 1 EQ, 25Ft of 1/0 wire, they'd be too busy shipping to maintain sanity.
Because distributors now controll a sizeable portion of the market, stores don't need to order a case of 6 equalizers, sell one, then practically give away 5 of them at cost just to get their money back.
Ash on 01/13/2006 13:59:23
Dangit "Mr. B"! Now why did you have to go and break my heart like that? I guess the only thing that I can rely on now is income tax returns. FROWN
pigwiggle on 01/13/2006 14:18:55
It’s weird. I bought some JBL p650c components at cardomain for $149 in December and they are back up to $249 now. The infinity KP 10.1 sub was $104, now $149. I think online retailers made a killing this season at the expense of the brick and mortar places. Maybe they are looking to move some stock.
MrBrownstone on 01/13/2006 17:56:16
You know, electronics is one of those fields where you DO NOT get what you pay for.
I recall when a 1000W class D amplifier was selling @ a buck a watt, $1000 ($999.99) back in like 1995 or so. Basically, a 100Wx2 amp was $499, so why not?
Of course, the COST of that amplifier was $250 per unit, then 100% company markup, then 100% Store markup...yielded $1000. What online eTailers did was change the dynamic of the sale.
After the COST of production was closer to $150/amplifier, the structure got narrowed down to $700 per amp...and stores & manufactureres were making EVEN HIGHER profits. When the internet became an instution, around 1997, now you could buy the best products in the Country..even if they were on separate coasts!!!
This crosscountry competition, along with the offshoring of products to Korea, China, Japan (or what wasn't already made there) brought the cost of power down.
In any case, retail stores have been socking it to ya for 60 years, and the last 10 years, the customer has had the upper hand.
The $249 vs $149 thing has to do with the fact that they were likely trying to rid themselves of 2005 (or 2004) product so they could begin offering 2006 (or 2005) product. Also, during the course of a year, car audio peaks in summer, with a late Christmas rush. These retailers were probably trying to rid themselves of excess inventory, and when they did, back to normal.
Even P.E's new sales flyer isn't offering much of anything worth looking at or at least in the way of major discounts.
Replies (4)
MrBrownstone on 01/13/2006 13:51:48
I wouldn't hold your breath.
Since 2000, the car audio environment has changed dramatically. Stores used to purchase DOZENS more products than they needed and move them at low margins. It was a way to get people in during an off time.
These stores have learned, however, that they are selling themselves short for later in the year, as well as, preconditioning their customer base to look for and only accept the rockbottom price. From this, it just doesn't pay long-term to have a whole bunch of equipment lying around and not going anywhere.
Manufacturers have been caught with loads of equipment that they can't move either. Stores no longer take advantage if high discounts on LAST YEAR'S wares. Because of that, manufacturers have employed Just-In-Time production whereas they are meeting demands, but not having a great deal of stock in their warehouses.
Also, many manufacturers are utilizing wholesale distributors. This is how the internet sellers have become prominent. If the manufacturer had to deal with orders of 3 subwoofers, 1 EQ, 25Ft of 1/0 wire, they'd be too busy shipping to maintain sanity.
Because distributors now controll a sizeable portion of the market, stores don't need to order a case of 6 equalizers, sell one, then practically give away 5 of them at cost just to get their money back.
Ash on 01/13/2006 13:59:23
Dangit "Mr. B"! Now why did you have to go and break my heart like that? I guess the only thing that I can rely on now is income tax returns. FROWN
pigwiggle on 01/13/2006 14:18:55
It’s weird. I bought some JBL p650c components at cardomain for $149 in December and they are back up to $249 now. The infinity KP 10.1 sub was $104, now $149. I think online retailers made a killing this season at the expense of the brick and mortar places. Maybe they are looking to move some stock.
MrBrownstone on 01/13/2006 17:56:16
You know, electronics is one of those fields where you DO NOT get what you pay for.
I recall when a 1000W class D amplifier was selling @ a buck a watt, $1000 ($999.99) back in like 1995 or so. Basically, a 100Wx2 amp was $499, so why not?
Of course, the COST of that amplifier was $250 per unit, then 100% company markup, then 100% Store markup...yielded $1000. What online eTailers did was change the dynamic of the sale.
After the COST of production was closer to $150/amplifier, the structure got narrowed down to $700 per amp...and stores & manufactureres were making EVEN HIGHER profits. When the internet became an instution, around 1997, now you could buy the best products in the Country..even if they were on separate coasts!!!
This crosscountry competition, along with the offshoring of products to Korea, China, Japan (or what wasn't already made there) brought the cost of power down.
In any case, retail stores have been socking it to ya for 60 years, and the last 10 years, the customer has had the upper hand.
The $249 vs $149 thing has to do with the fact that they were likely trying to rid themselves of 2005 (or 2004) product so they could begin offering 2006 (or 2005) product. Also, during the course of a year, car audio peaks in summer, with a late Christmas rush. These retailers were probably trying to rid themselves of excess inventory, and when they did, back to normal.
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