Negotiating with an Authorized Dealer???

[kmckenna45]

Hi - I've decided to start a thread to help guitar buyers share ideas about buying guitars online from Authorized Dealers.

I've read many threads about how Authorized Dealers are all held to the same MAP and Discount Level. This puts us, the consumer/buyer at a disadvantage. Our negotiating power is reduced.

What techniques have you used to encourage an Authorized Dealer to give you a discount beyond what they typically provide?

Or, what other items, products, services have you been able to get them to kick it - to encourage your purchase from one Dealer over another?

For example, I've been able to get one dealer to throw in return shipping if I'm unhappy with the purchase.

What other things have worked for you?

[Dru Edwards]

Show commitment that you're ready to buy on the spot and treat them with respect.

[SpruceTop]

Pricing: Just ask the dealer what is their best (lowest) price at which the item can be purchased.

Additional Sevices/Items: Depending on an item, just ask if an additional service or item can be applied for the agreed upon selling price. Example - When buying a 5-string banjo, ask if they will install 5th-string railroad spikes (for capoing that string) at the frets of your choosing.

[Atomnimity]

I stopped negotiating years ago. Cars, guitars - whatever. I never give them any idea what I might be willing to pay. I just tell them to give me their best price (that's fair for them and me) and I will make a decision based on that price. Yes or no. I tell them there will not be any back and forth. I also do enough research to have a reasonable idea what a fair deal might be.

[Kh1967]

Loyalty....

I have a handful of dealers that I buy from. I treat them well and they treat me well. I firmly believe that the good dealers do what they can to help their customers - the ones that don't suffer in the long run.

All that said, buying is a two way street. In order for dealers to stay in business, to provide service beyond the sale, to carry inventory, pay their employees - they are entitled to and should make a profit.

[Rogerblair]

Figure a fair price, for you AND them, and ask for that price. Don’t try to beat every penny out of them or you may find them gone next time you want to buy something.

They need to make money to stay around for when our “whims” strike.

Kh1967 and I must have been typing at the same time.

Rb

Originally Posted by kmckenna45

I've read many threads about how Authorized Dealers are all held to the same MAP and Discount Level. This puts us, the consumer/buyer at a disadvantage. Our negotiating power is reduced.

I guess I don't really understand why the consumer should have "negotiating power" when it comes to guitars. I don't haggle at the grocery store or the gas pump or Home Depot. Is what you call a "disadvantage" really just the lack of an "advantage"?

[Bob Womack]

Five things:
1. Do your research before you buy and figure out what most consider a fair discounted price. That has to be adjusted to the difference between brick-and-mortar and mail-order. Take the best price you find in for them to see.

2. Go by Amy Grant's father's theorem: "A good deal is only a good deal if it is a good deal for everyone involved." They have to run a store, I need the lowest reasonable price. It needs to be fair for both of us. I don't browbeat them and expect them not to browbeat me.

3. If the price means more than the individual guitar, be ready to cordially walk away if they aren't willing to come down to your reasonable target price. But be nice! "Say, I think I can get it cheaper elsewhere, but thank you." You may need to come back to this dealer for this guitar or another.

4. If the individual guitar means more than the deal to you and you just have to have it, be ready to cave in and pay what it takes to get the particular guitar.

5. Don't waste their time. What is the first thing they ask? "Are you ready to buy today?" They do that because they can sometimes squeeze out a couple of percent to close a deal immediately. Don't ask for their bottom line or negotiate until you are ready to throw down and buy the instrument.

When you go by these rules you set up the table so that both parties can feel good about the negotiations and the deal. Win-win. They love you for it and welcome the sight of you next time. "Hey howyadoin'? How's the guitar?"

Bob

[The Bard Rocks]

I don't buy many music-related items but made a decision years ago that I will absorb the sales tax to level the playing field between local and internet sources.

I do lots and lots of research, first to make sure that whatever purchase I make will be one I am well satisfied with and will continue to be into the future. Fussy about the things I work with, only then will I worry about the price and start to compare that. If it costs me 8% more to buy locally, I am good with that (that's the local tax rate). Also I recognize that it is worth something to me to see and handle the item I am buying - although I have done it in the past and no doubt will in the future, I am always cognizant that it's not really fair to the dealer to handle his items, then buy on the internet.

I have had success first by knowing the cheapest price for which I can get something, I may bargain down to that or I may just state that I can get it elsewhere for this - do you want to meet the price? If it's an item where there are peripherals, then getting something extra thrown in or upgraded can make the deal for me (assuming I want and will use them). Dealers who are constricted by manufacturers on how low they can go can get around this by giving something away that the manufacturer did not make.

[lfoo6952]

Dealers are bound by agreements they have with the guitar manufacturers for discounts allowed. Therefore instead of negotiating for a lower price for the guitar, I ask the dealer to throw in another small item as part of the deal, such as a tuner or capo.

[Mycroft]

Originally Posted by Willie Voltaire

I guess I don't really understand why the consumer should have "negotiating power" when it comes to guitars. I don't haggle at the grocery store or the gas pump or Home Depot. Is what you call a "disadvantage" really just the lack of an "advantage"?

Because that is the way that the industry evolved. Similar to the auto industry (particularly when it comes to used cars)

What really freaks people out is when they don't get the same discounts between MAP and street price in things like boutique or vintage guitars that they get from large manufacturers.

It is what it is...

Originally Posted by Mycroft

Because that is the way that the industry evolved. Similar to the auto industry (particularly when it comes to used cars)

Not a very complimentary comparison!

[guitar george]

Some guitar chain stores do not allow any negotiating by their employees. Where you might negotiate a bit is if you are trading in a guitar and the value of the trade-in is uncertain.

[IndyHD28]

Here are two concrete things you can do after you negotiate your best price.

#1 Pay in cash and ask for the transaction fee the dealer was prepared to pay Visa. This is 2.5-3.0%.

#2 if you buy from an independent who sells via internet with “free shipping” then here’s an expense the dealer already has figured into his margin but is saving because you’re going to pick it up. This is $50-$150 for CONUS.

If you’re in a charitable mood, ask if they will split these costs you are saving them. This will help offset a good chunk of any sales tax due.

Never, ever feel sorry for a seller of goods. If you’ve gone too far, don’t worry, they’ll let you know.

[jim1960]

Originally Posted by Willie Voltaire

I guess I don't really understand why the consumer should have "negotiating power" when it comes to guitars. I don't haggle at the grocery store or the gas pump or Home Depot. Is what you call a "disadvantage" really just the lack of an "advantage"?

Do you haggle when you buy a car or do you just pay sticker price because you don't haggle at the grocery store?