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Is there a formula to calculate "street" price?
Old 21st January 2007
  #1
Lives for gear
 

Is there a formula to calculate "street" price?

Is there a way to figure out what the street price will be based on the "list" or MSRP price?

Thanks!
Old 21st January 2007
  #2
Gear Addict
Quote:
Originally Posted by Bump Music View Post
Is there a way to figure out what the street price will be based on the "list" or MSRP price?

Thanks!
Here's what I do.. I take the MSRP - (MSRP * .4). That usually puts me in the ballpark.
Old 21st January 2007
  #3
Lives for gear
 
Tony Shepperd's Avatar
Pro pricing is usually 33% off the list price.
Old 21st January 2007
  #4
Moderator
 
TonyBelmont's Avatar
 

NO!!!!

Every manufacturer is different.

There is no formula that will give you a street price. Some of the numbers that have been posted above are so far off... Maybe with some of the pro-sumer companies that will work, but the markup on the more boutique or higher end gear is miniscule in comparison.
Old 21st January 2007
  #5
Lives for gear
 
absrec's Avatar
 

I used to work in a small "mom and pop" music store and I learned a lot about product pricing during that time.

The manufacturer will "mark" the product depending on what kind of store they are distributing to, how much business that store does with the company, demand for their product, etc.

An "A" mark means that there is little to no discount. A "B" mark usually means anywhere from 15-20% off of list. And a "C" mark can mean as much as 30-40% off of list. Remember, the seller still has to make enough to stay in business, so they can't just sell everything at dealer cost. Some "C" mark items, which were usually big ticket things like guitars and drums from manufacturers we dealt with almost exclusively ended up being 50% off list, or sometimes and additional 10% off of that depending on how much we bought at one time.

Now, that being said, Shure microphones does not subscribe to the whole "A,B,C," mark thing. They just have a street price, and a price they sell the merchandise to the store for. Mesa amplification sells everything at list price. You get no discounts on Mesa.

I guess what I'm saying is to just call or email the seller and ask them what the bottom line is 'cause you'll drive yourself crazy trying to figure out how much everything is discounted and why somethings are marked differently from others.

-Aaron
Old 21st January 2007
  #6
Lives for gear
 
GYang's Avatar
The best price usually you can get is 40% off the list price. It's not the first quoted price by many dealers and highly depends what you buy and what additional services (warranties and aftersale support) you require.
More often it's at least 30% and dealer should be good to you to share generously his part of profit.
Companies that anounce lower MSRP and doesn't support delaers with bigger discounts usually sell less.
PRS and Martin (guitars) are great example. From dealer you know well, you can squeeze 40% off on any model. When dealer tell me story about unique model he has in shop and offer 25% off list price, I simply search further.
Psychologically it helps gear owner to sell easier on 2nd hand market, as gear purchased at 40% off list price, usually goes quite easily 50% off list price what is reasonable loss for seller and looks like bargain for the buyer.
So, discounting policy is marketing weapon and 'smart' manufacturers who impose strict policy that ends up with dealers 'street' prices near to list prices are most likely doing more harm to themselves.
But the worst kind of discounting is when manufacturer all of sudden lower MSRP price and what you paid 1500 $ 'street price' start to cost 1200$ MSRP.
Old 21st January 2007
  #7
Gear Maniac
 

A formula?

MSRP - (30%/brand value x sector 'hotness') - (time available x supercedability)

Analogue stuff does well because it is a hot sector, with strong brand loyalty and isnt generally supercedable by changes in digital format.

Just kidding mostly, but a reminder that the market sets street prices, it isnt only about retailer policies

:J
Old 21st January 2007
  #8
Lives for gear
 
absrec's Avatar
 

Quote:
Originally Posted by Daddy No View Post
...Just kidding mostly, but a reminder that the market sets street prices, it isnt only about retailer policies...
This is a good point. For instance, I checked out a Pultec knock-off a couple years back that was selling for $2850. They must not have sold a lot of them (I know I didn't buy one) because just last year, I saw them selling (brand new) for $1995. Supply and demand are huge.

-Aaron
Old 21st January 2007
  #9
Lives for gear
 
rainsinvelvet's Avatar
Quote:
Originally Posted by TonyBelmont View Post
NO!!!!

Every manufacturer is different.

There is no formula that will give you a street price. Some of the numbers that have been posted above are so far off... Maybe with some of the pro-sumer companies that will work, but the markup on the more boutique or higher end gear is miniscule in comparison.
Tony is exactly right. I work for one of the larger independent norcal pro audio stores and the cost compaired to retail on alot of higher end gear is very small..
ERic
Old 21st January 2007
  #10
Here for the gear
 

i agree that all compaines are different. I work for a company that puts about $40-50 into the product and then charges around 500 for the product (price changes on how much you order, if your a dealer, etc.)
Old 22nd January 2007
  #11
Gear Nut
I think it depends on the length of the street and whether its sealed or unsealed and of course what kind of neighborhood the street lives in heh
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