In this article, find out:
1. How to save at least 25% on expensive stereo equipment at your local stereo shop
2. How to save up to 50%+ (!!!) on stereo equipment from eBay
3. How to save even more on stereo equipment buying from auctions.
4. How to save money buying used equipment
5. How to save money buying refurbished equipment.
6. How to get sponsored, and get stuff for free
7. How to form a business, get stuff for cheap, and make money!
The situation:
Stereo equipment is expensive. In fact, autosound is the most expensive hobby I’ve ever had. As such, most of us who don’t make tons of money want to find the best deals possible, without going through tons o’ trouble.
Bet you didn’t know…
Stereo components don’t really cost their price. In fact, most dealers pay less than half of the MSRP (manufacturer’s suggested retail price) for a component. This doesn’t mean that a dealer can just turn around and sell the item for their cost. Dealers spend significant amounts of time and money to sell an item, and as such mark up the price of an item. I mean, if a dealer has a unit that sells for $500, they might spend $250 for it. HOWEVER, the dealer also has to pay rent, utilities, payroll, etc. in order to make that item available to you. On top of that, a dealer must also spend time locating the item, ordering the item, and storing the item. In short, the dealer is doing work, and needs to be paid for it. So, they mark up the price. This is to be expected. The good news is that many stereo shops won’t charge full MSRP if you bargain with them.
Bargaining…
So, you walk into mom and pop stereo shop in Anytown USA (or Anytown World), and see a unit that you like. The price is $499. You see a salesman hovering around, so you ask the salesman if you can buy it for $250. No way says the salesman.
Why did this happen?
You made a “lowball” offer to the salesman. You basically asked the salesman to sell the item without a profit. Forget about it. Most salesmen earn a commission on what they sell, and as such this salesman will not accept your offer because he won’t earn a commission. Would you work for free? Of course not.
Instead, make an offer that is well above the wholesale price, but well below the retail price. Halfway between these two prices is fair. If wholesale is $250, and retail is $500, offer $375.
The salesman still says no. Wait a second! I thought you said that you could bargain with the salesman, what the hell?
I was correct when I said you could bargain. However, the salesman is still thinking commissions. Why should he sell it at a price lower than he is used to? Because you’re willing to do something for him. Tell the salesman that you’ll tell your friends. Tell the salesman that you’ll promote his business. If you scratch his back, he’ll scratch yours.
Now, don’t be shady about this. Don’t lie to the salesman telling him that you’ll refer your friends to him, and not do it. Think about it, you just saved $125 on a piece of equipment. To be 100% fair, you should do $125 worth of work for the salesman. One way to do that is to refer your friends. Ask for a few business cards, and pass them on to your buddies.
How do I go about this?
This is the phrase that has always worked for me:
“What kind of deal can you get me on that DEH-P960?”
This phrase is highly effective because it gives the salesman some vital information:
1. You sound like you know what you’re talking about by using the model number
2. You are interested in buying—if the price is right
3. You want a deal
Many times, a salesman will come back with a slightly lower price. If the item was $500, they might say: “Well, how about $475?” You know you can do better, so just be up front with the salesman. “Come on, both you and I know you can do at least $400”. “Better still, let’s make it $375, and I’ll tell my friends—do you have any business cards?”
Chances are good that the salesman will say yes. If he says no, just raise your offer by a few dollars. Often times the salesman will make a counter-offer. Never accept it. At this point, the salesman REALLY wants the sale, and will be trying everything in his power to close the sale. Don’t be obnoxious or cocky, just be firm.
It has been my experience that I have been able to save about 25-33% on expensive gear at brick and mortar stereo shops.
Another hint: Don't try this at a national chain, you will get rejected. Why? Because these chains are bad bad companies. They've got enough money, anyway. Do business with local shops who actually care about car audio, and care about providing you with good service, and don't hire lame kids who don't know anything about anything!
2.) eBay
eBay. This is it. eBay has the best prices, and best selection I have seen for stereo equipment. The main drawbacks are that the availability of some brands is extremely limited (such as the high-end brands), you'll have to wait for the item to arrive (I know this can be nerve wracking), and some people are still concerned about conducting business transactions online, identity theft, fraud, etc. etc. However, with a few tips, you’ll be safe, and save big bucks on your stereo system.
Alright! Let’s save some money! But first, a few tips to keep you safe.
First, check the seller’s feedback. I would hope that the seller would have at least a few hundred POSITIVE feedbacks, and no less than 98% positive. Many of the big time electronics dealers on eBay have THOUSANDS of positive feedback, and are very reliable.
Second, be sure that the seller is verified or certified by at least one online based third-party, that specializes in fraud prevention. These include BBB Online, ID Verify, and TrustE. This ensures that the seller is who they say they are, and do what they say they do. It also ensures that there are no major complaints against that merchant.
Third, look at the shipping price. Sometimes some of the less reputable sellers on eBay have seemingly great prices on stereo equipment, but have extremely high shipping prices. Usually, the total price comes out to about the same as other sellers, BUT this behavior is prohibited by eBay because the seller is fraudulently paying less eBay fees than they should. Do not trust people who do this.
Fourth, buy insurance. Many times sellers include this in their shipping price, or require it, but if they don’t, pay the few extra dollars for it. You would be quite upset if your $500 Alpine arrives with a cracked faceplate. This happened to me, and I was quite happy that I had insurance.
Fifth, be sure that the seller accepts Paypal. This is a great security point, and shows that IF the seller uses Paypal, then that seller has been approved by Paypal. You don’t have to pay with Paypal if you don’t want to, but…
Sixth, just pay with Paypal. The reason: They have powerful fraud protection built into their system. It’s just safer than paying through any other means.
Seventh, if it looks too good to be true, it probably is. Use caution!
I'll show you where the hottest deals on stereo equipment are happening right now on my website!
3.) How to find liquidators/seized electronics dealers/auctions, etc.
This is how you’ll save the most money. Before continuing, I will tell you that it is possible to get electronics for pennies on the dollar. I would recommend this route for people who are interested in being in the stereo business. You can find liquidators and auctions where it is possible to buy throusands of dollars worth of equipment for only hundreds. You can find a few pieces to keep for yourself, and sell the rest on eBay, or through Craigslist, and make back all of your money and then some! It requires a little work, but can be quite rewarding. I can tell you more about this on my website!
4.) Another option: If you want to save bucks, you can also buy used equipment. Now, I personally wouldn’t buy used stuff unless I knew it was in great condition (which is hard to do through eBay), but you can get good equipment at very great prices if you are selective.
One creative way to do this might be through competitions. Go to a competition, and talk to a competitor. Usually these guys change their equipment frequently, and know their stuff (so you’ll know it wasn’t abused, and you’ll know it was installed correctly). You could easily find some TOP QUALITY equipment at extremely good prices just by talking to autosound competitors.
Check local newspapers, craigslist classifieds, online classifieds, car audio forums, car enthusiast websites, the possibilities are endless! It might be a lot of work, but if you can find a well taken care of piece of equipment, you will save money.
5.) Refurbished goods:
These are sorta half-used. Usually if a product has problems, it is sent back to the factory under warranty. The manufacturer will fix the broken part(s), re-package it, and sell it to wholesalers at a discount. Refurbished gear is great because it was basically restored to like-new condition, and sold at a discount. There is no shortage of refurbished gear on eBay, and I highly recommened it as a money-saving option.
6.) Sponsorships:
If you have a good looking car in great shape, you might be eligible for a sponsorship. Basically, with sponsorship, different manufacturers provide you with their products, and you install them. In return, you show your vehicle at shows, and promote the brand that sponsors you. This is one of the few ways to get free gear. Some work is required, but ummmm FREE CAR AUDIO GEAR!
7.) Go Legit:
Form a business, and get access to wholesalers. Usually all you'll need to do is get a "reseller's permit". This document is free to obtain, but beware! It also requires you to do certain things (like pay sales tax to the government). It's not hard at all, you just need to keep records. Check with your state board of equalization for more info.
Conclusion:
If you’re willing to work for it, it is quite easy to find great deals on stereo equipment.
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