Group tests

[DevillEars]

If everybody fully understands the difference between the two, my apologies.

If not, then maybe the explanations of each may cast some light on some of the differences in viewpoint in this thread...

MARKUP

Quite simply, "markup" is based on "cost" PLUS a percentage of "cost".

Eg: An item costing 100 units marked up by 50% gives a selling price of 150 units - a 50% markup - and a gross profit amount of 50 units (150 less 100)


MARGIN

More correctly known as Gross Profit Margin (or GPM), where the GPM is expressed as the gross profit amount as a percentage of the selling price and NOT the cost price.

Eg: Using the same values as above, the GPM% would be (1-(cost/sales))x100 or (1-(100/150))x100 or a 33.3% GPM versus a 50% markup.

The difference in the percentages is due to the difference in approach - profit as a percentage of cost value or profit as a percentage of sales value.

This might just account for the differences of opinion relating to dealer markup/margin...

[Viagara]

I worked for Pick 'n Pay and they do not work on a mark up of extortionate proportions (contrary to public perception) so why the need to negotiate - And no I was not a cashier in case thats what you're thinking.

And as most of you probably know, I still work for Pick 'n Pay(or should it be "I am employed by.... ) and the average markup is VERY LOW compared to gross profit of AV resellers.

I understand that dealers have to make a profit and have no problem with that, but its annoying if you as a consumer have to pay seemingly inflated prices and at the same time accept bad service. I am not saying all dealers give bad service as I have had wonderfull service from a number of dealers, strangely thought these were all "small" dealers.

[Cleansound]

I have had wonderfull service from a number of dealers, strangely thought these were all "small" dealers.

Excellent,you have really nailed it,I couldn't agree more.
I find the smaller dealers to be honest and more than accomodating.
As I said profit/mark-up or whatever,is not a dirty word,we all have to live,that is why I am happy to pay for an item if it is in line with overseas pricing.
I will give an example here:A Benz cartridge which retails for $ 3 000.00. and retails for 2 200 pounds sells locally for R 16 800.00.
Man that is what I call a bargain 

[Shonver]

I am not saying all dealers give bad service as I have had wonderfull service from a number of dealers, strangely thought these were all "small" dealers.

Call me cynical, but small dealers cannot compete on price, so all they have left to compete on is service. Ironically, prices being what they are, few people can afford to support the guys who "deserve" the business most.

Gone are the days when I could walk into one of Hamrad's (yes, Hamrad!) listening rooms and sit in on a demo hosted by audio enthusiasts such as Merton Wasserson or one of the other nice guys that tolerated my presence. No hard sell, just a mutual appreciation of good audio.

This is not possible these days. Conditions today make it rare for one to encounter sales persons who do it for the love, firstly. The bottom line is what counts. I feel privileged to have expereinced that. Even in the local audio clubs, half the members are guys wanting to make a buck (no offence intended to those entrepreneurs).

Given this situation, it is no wonder that snake oil flows more freely these days, in spite of the "more enlightened" internet community.

But I digress...

...beeznis eez beeznis...

[jamster]

Shonver, the issue of not being able to sit around listening to HiFi is a whol 'nother issue.

I, too, miss just hanging around HiFi shops on saturday mornings, listening to what is new and exciting. That to me is the essence of what being an audio nut is all about! FInding new music, sampling new kit.

Every time I walk into an audio store these days, I am greeted more with a waddaya want expression than a come check it out. All I can say is that if I owned a store, I would be encouraging as many audio nuts as possible to hang around ...

[Viagara]

Every time I walk into an audio store these days, I am greeted more with a waddaya want expression than a come check it out. All I can say is that if I owned a store, I would be encouraging as many audio nuts as possible to hang around ...

You hit the nail on the head!

[skinnyfat]

You hit the nail on the head!

Absolutely, why do the majority (not all)of salespeople think that prospective buyers are morons who have no clue what they're talking about and that their (the salesman) word is gospel. I must admit though, Mod'nSound in DBN is an exception to the norm. I can walk in there any time with a bag of CD's (they don't sell turntables ) and spend an hour in one of their demo rooms, unsupervised as well LOL. Boy did I have fun with their Denon DVD - A1XV when it came in

[DevillEars]

Hell's teeth, you've taken me back further than I'd normally admit to...  

What ever happened to Merton? I guess the last time I saw him was back in the early 1970's - in the old Hamrad shop in ...

Was it Wale Street?

I too spent many a fascinated hour in that store...

Thanks for that little trip down memory lane!

[Shonver]

Buitengracht street.

It was quite ironic. I met him years later. He was working at the Five Rand Shop (or somesuch). He told me he had sought work at The Corp. Told them his illustrious credentials, but they said no, he would only try and sell the customers the best products, which is not what they do (we know that!).

I hope he's doing OK now (should be retired).

[Ampdog]

And back even further .....

When Hamrad was in Loop Street, with Jack Twine (ZS1A) as the manager, advising this youngster on a 1D8 (diode-triode-pentode) as a regen. radio with Brown headphones (ex-army). Those 1D8s cost 7/6  (that is 75c to the youngsters) - still have two left. No listening rooms then, because - no hi-fi. Later W M Proctor started out way down in St Georges Street (?) and Romeo in Hout Street. They sold those glorious Geloso full wave radio kits. Neatest coil pack I ever saw....

This should probably come under "General". Where were we? - Oh, group tests. How did we get here??