I think that there is not alot of markup at all on appliances. I was given the option to get certain name brand appliances from a dealer at cost. They were coming from out of town so the only extra cost I would have to pay would be the frieght. I sent him a list of brands and model numbers of what I wanted and he sent me back prices. Every price on the list was a couple of hundred dollars more than the price I got from local dealers at their regular sales price. I emailed him back and he said the reason was that there is hardly any markup in the appliances bussiness (may be BS and he did not want to go through the trouble or use one of his company favors on me). I had dreams of getting above average appliances at half price only to be squased by the no dealer markup excuse. May be so competitive that dealers use little markup on appliances and hope to get you in their parts and services department where they can make their money.

Typical markup on appliances is between -5% (loss leaders) to around 30% for higher end stuff. Average is around 15%-20% for most middle of the road consumer grade stuff.

There isn't a dealer around that would survive a day in the business at 100% markup.

What appliance(s) are you talking about and how do you know the dealer's markup is 100%. In a restaurant 100% markup from retail is typical for a bottle of wine.

Whatever it takes to keep Antss in Xanax.

Don't know anyone in this business getting 100 points, heck I don't know of anyone getting 50, except maybe on some rare special ordered service part.

moja- sorry but I don't have an anxiety disorder. Maybe you should go bake some more potatoes to work out your coffee machine frustrations that still seem to be lingering.

As with all consumer goods, pricing on appliances is based on what the traffic will bear. National and regional chain stores tend to set the maximum attainable prices for which mainstream appliances can be sold. Profit for an independent retailer may range from 15% to 25% (ie: a cost of 85% of selling price yields a 15% gross margin), depending on the classification of the appliance. The basic low to mid priced name brand "commodity" appliances will be on the low end of the scale and the more highly featured models may allow for a higher margin due to the fact that the features need to be "sold" rather than to rely on strictly a low price. If appliance dealers could average margins of 50% to 100%, everyone would be opening appliance stores.

Thank you for the replies!

I probably should have been more specific, as maybe the item in question isn't a typical appliance.

I am trying to purchase a Modern Aire hood. As many of you might know from this (and the Kitchen) forum, lots of happy MA owners here on GW were able to buy their hoods directly from MA because MA didn't have a dealer in their area. For the unfortunate ones who do have a dealer, the MA hood is sold at a substantial markup.

I have encountered several instances where the dealer markup has indeed been 100%! One GW buyer discovered this when the dealer inadvertantly sent her the invoice from MA, in addition to the dealer's invoice. So she was able to see the mark up right before her eyes. 2 other GWers were able to get a quote directly from MA, but then ended up having to go to dealers. They too said the price of the hood doubled with the dealer markup. And I just received my first quote from a dealer. Although I do not know what MA's price would be, I can offer the following comparison based on a friend's direct purchase of a hood.

Her hood: custom 45 inches wide, 30 inches tall, custom matched color, decorative pot rail, 1200cfm's. She paid a bit over 2000.00.

My dream hood: standard 42" wide, 18" tall, stock white color, no pot rail, 600cfm's. Quote: Over 3,500.00.

This is depressing, to say the least! An MA hood--at base price--would already be the biggest splurge of my kitchen (indeed the most expensive appliance in my home!). But if the price is then doubled?? Whoa.

Can I stamp my foot and moan that this simply isn't fair?

30%? Ok. 100%??

*stamp stamp stamp*

Thanks for listening,

francy

Antss, the first stage of the disease is denial.

;-)

sorry moja - but that's not a stage of it, I attended med school in the 80's. Better do some research.

You could have it though, since you seem to be irritabile and worry a lot about your ability to beat dodge at cooking a potato.

Med school? In the 80s, no less? Antss, I always pictured you as a healer!

Paging Dr. Antss! Bring Xanax!

This is, I think, a problem specific to ModernAire in the Bay Area, from what I know about it. (Maybe other places too? I have definitely heard that it's an issue with one Bay Area dealer, who might be the only one here.) And honestly, people keep buying them, so they have little incentive to change the markup! I think the only real way to deal with it is to go in equipped with the info about what the direct cost is, make an offer, and---most importantly---be prepared to walk if they say no. (And then write/call MA to let them know why you did not buy their product!) Short of people doing that, they'll keep selling them at those prices...because people without the info will keep buying them. :/

I think more typical appliance markups are in the 20-30 percent range, from what little I know about the specific brands we're looking at (but they're mostly mid-range so it may be normal for higher end brands to have higher markups...? The one "high-end" appliance we're getting has a minimum price set by the manufacturer, so I only know how much dealers mark up above that---generally no more than 5 percent, and most are at the minimum.)

Oh Francy, that is a disappointment! It is so hard to find that perfect hood for our vintage babies, isn't it? And when you find it, to get hit w/that price just kills.

Is this particular dealer your only option?

bayareafrancy, that is exactly why I do not have a MA hood. I called MA and was quoted a price. Very nice staff member I spoke with. Called back to place the order and they found a dealer within about 100 miles so told me I had to call there. I did and it wasn't double but close. Worse yet the person I spoke with wasn't even pleasant on the phone. So I ended up buying a Kobe that can be used alone or with a surround. Maybe someday I will have something welded.

This might be a little nuts, but...could you go get it in LA? Maybe combine it with a little road trip? For that much of a markup, the drive could be worth it!

Here's another crazy idea. If your friend lives in an area where she is allowed to order directly from MA, could she order one for you?

Thank you for the ideas and sympathy.

I could actually go to LA--the trip would cost less than the markup. I was thinking that since they are based in LA, they must have lots of dealers in the area. But maybe they are their own dealer there? I'll have to look into it.

Come to think of it, I have an old friend in LA....

I was also thinking about having my mom order it for me. But she is elderly, and might not really be up to the task. I wonder if it would be as easy as UPS delivering the hood, and then at the same time, picking up the hood for a new delivery to me. She's on the East Coast--what a trek that hood would make! But f she had to actually move the hood herself, then I'm not sure it would work.

I hate to inconvenience anyone. It isn't my nature. I'm one of those, "No, no, I can do it myself" *struggle gasp gasp struggle*" It feels embarrassing to ask for too much help.

I've searched for other hoods, thinking I could have a stainless one painted white (an idea from a GW'er), but I just can't find one with the right shape. Those MA curves perfectly match the curves on my stove.

I'll try to focus my motivation on the fact that my house always smells like a combination of food, and fumes from my vintage stove, since we've got no hood.

Thanks again!

:-)

francy

Hey Francy, if I qualify due to my location, which is pretty damn remote, I'll order it for you if you want.

email me and let's conspire.

I'm pretty sure they're their own dealer in LA (from back when we oh-so-briefly contemplated a MA hood!) I would be cautious about the East Coast thing, though---I shipped lots of stuff from New England not too many years back, and it's pretty costly unless you're able to do something like throw it on Amtrak as freight (which was what I did!) I'm guessing you'd eat up any cost savings pretty quickly shipping it out there and then all the way back again....I think you should call up that friend in LA and maybe plan a road trip to visit! ;)

Wow Mojavean! That is beyond wonderful of you to offer! I'll keep you posted. And thank you so much!!

Right now I'm following Artemis's suggestion to gather data from other hood owners as a negotiating point. You GWers are just so generous with support and information. Even if I can't get the hood, I won't feel so bitter about it thanks to the wonderful folks who are offering to assist me.

I checked on the MA website, and they do appear to now have a dealer for SoCal. So it looks like that won't work. Unless I'm reading the website incorrectly. Darn it! My kids have been begging to go to Disneyland!

The hood "only" weighs about 100 lbs. That's not so much, is it? I'll have to check with the major shippers.

I've been clicking all over the "find a dealer" map, and it looks like the "barren zones" are in the east, and.....Montana. :-)

Thank you again and again! Thank you Mojavean for your very kind offer!!

:-)

francy

Make sure they'll honor your warranty if you buy it out of area - some manufacturers/distributors are nasty about that.

There are plenty of Modern Aire dealers in So Cal. I've bought two from two different sources.

The shipping would be an issue because with crating you're going to be over size, requiring a common carrier. You might be able to arrange to pick up Mojavean's hood at the factory if you have (or can borrow) a pickup truck.

Francy,
Have you thought about using an HVAC person and an independent metal fabricator to design and fabricate a hood for your purposes? I know people who have done that on variously-sized projects and it might be worth researching.

Francy, did you end up getting the hood?? I'd love to know! I only pop in here once in awhile and am looking for a simple one myself, so I don't know if you updated.