Whyare there NO discounts allowed on Polk Speakers?

tomhayes

I'd like to buy a pair of LSi15s but I do not want to pay the full retail price.

Why does Polk not allow their dealers to bargin with me?

I undertand minimum advertised pricing. I understand grey market.

What I don't understand is if the delaer buys the speaker from Polk for $1100 dollars and the dealer feels he can sell them to me for $1450 why Polk will not allow him to. (I'm using him becuase its a sauge fest at audio dealerships.)

Tweeter has told me they'd be able to deal a little on Novemeber 12th because Polk will allow them to have a sale that day.

My question is: Why can't I get the sale price now? I have cash in my hot hand and about 20 other brands of speakers that will discount.

Help me understand why an authorized dealer can't sell non b-stock merchandise at 7-12% lower than MRP.

PolkThug

It protects the authorized dealers from price wars.

Shizelbs

Its in the contracts.

tomhayes

PolkThug wrote:

It protects the authorized dealers from price wars.

Seems good for dealer margin but not good for my pocketbook. This is Bose style pricing.

What I thought before I posted was that the fixed pricing helps Polk and the retailer at the cost of consumer. That's what I'm hearing back.

So the only discount is to go grey-market and get ZERO warranty and support. OR to pay 100% retail on a set of speakers that cost as much as a nice used motorcycle.

I'm really on the fence about this major purchase now.

hoosier21

How does this differ from other mfg's?

What brands of speakers are you looking at that will allow a discount?

Just wondering

PhantomOG

my local Fry's runs great sales on Polks all the time. It wasn't too long ago that lots of people here were buying up LSi bookshelfs (forget which model) at an insane price.

I'm not sure but I don't think its Polk that doesn't want to sell them at a lower price, its your local dealer.

hoosier21

PhantomOG wrote:

It wasn't too long ago that lots of people here were buying up LSi bookshelfs (forget which model) at an insane price.QUOTE]

LSi 7's, marked refurbished

PhantomOG wrote:

I'm not sure but I don't think its Polk that doesn't want to sell them at a lower price, its your local dealer.

You can bet Polk has a minimum sales price for the LSi line.

My experience with Tweeter, they don't discount, unless you are buying several big ticket items.

Shizelbs

PhantomOG wrote:

It wasn't too long ago that lots of people here were buying up LSi bookshelfs (forget which model) at an insane price.
QUOTE]

LSi7s @ $200/pair

I did talk to a local store a while back when I was in college. They said they had a territorial agreement with the nearest Polk dealer. They were a good 45 minutes away, but nonetheless they couldn't undercut the other store. They could have an official advertised sale, but they could not undercut the agreed price. They could offer incentives such as free speaker wire and such.

hoosier21

using the stated 1450.00 above:

1450.00 plus 6% sales tax = 1537.00

Crutchfield has the LSi15 for 1599.99 with free shipping.

Spend the extra 63.00 bucks at Crutchfield and be done with it.

tryrrthg

tomhayes wrote:

My question is: Why can't I get the sale price now? I have cash in my hot hand and about 20 other brands of speakers that will discount.

my guess is those 20 other brands have an even higher mark up than Polk, so you're not really getting any better of a discount...

shack

hoosier21 wrote:

using the stated 1450.00 above:

1450.00 plus 6% sales tax = 1537.00

Crutchfield has the LSi15 for 1599.99 with free shipping.

Spend the extra 63.00 bucks at Crutchfield and be done with it.

BINGO! Decent price and full warranty.

Jstas

Why doesn't Polk offer discounts or allow extreme price cutting? Because they reserve the right to. That is the only REAL reason that they need.

However, it has already been mentioned. They have deals and discounts all the time just not always on stuff you are looking for. They don't allow general sales and such because thier speaker lines are carried by big box stores and little boutiques alike. A big box store has a larger profit margin on a set of LSi's than a boutique. If you can get the same speaker at a boutique from a big box store for 20% less, how is the boutique going to survive if the big box store can discount those speakers lower than the boutique's minimum profit margin?

You are being unreasonable. Just because you don't have enough money saved up or think that the stores are not entitled to make a profit doesn't mean that you should get special pricing.

If you think you can find a speaker for the same price as the LSi speakers that will perform as well if not better then go ahead and try. I'll say good luck because I have yet to hear anything else in the same price point as the LSi's, let alone cheaper, that can compete. If you would stop crying about it and save the extra money, you'd have the LSi's.

This thread is actually kind of depressing. The LSi's are already a stellar bargain and people are still looking to cheap out on them. If you don't have the money for those speakers then maybe you shouldn't be considering them? Polk and plenty of other companies have lines of speakers that are kinder to the pocketbook.

Jstas

Oh and it's not Bose pricing. The LSi's have been compared to speakers from other companies looking for 2-3 times as much for similarly performing speakers. If you ask me, Polk Audio is cheating themselves. They have speakers that could easily compete with what is considered "high end" stuff from alot of other manufacturers yet they price them so the average guy can afford them. That is the exact opposite of Bose.

CrBoy

tomhayes wrote:

Help me understand why an authorized dealer can't sell non b-stock merchandise at 7-12% lower than MRP.

They don't have to do it... it's their call if they want to do it. that's the beauty of Marketing... OPTIONS.

If you have the money to buy the Lsi's then go for it, if you don't, you have to keep saving up... that's the way it is and is always going to be!

That's how I see things... just my opinion.

cheddar

BTW,

The LSI 7s for $199 at Fry's were refurbs. Don't know why polk dumped them at Fry's for that price, but don't expect that "sale" again anytime soon.

tomhayes

Jstas wrote:

You are being unreasonable. Just because you don't have enough money saved up or think that the stores are not entitled to make a profit doesn't mean that you should get special pricing.

Me unreasonable?

1)Who says I don't have "enough money"? - I do (on edit the I do refers to the amount of money I have, not that I'm calling myself cheap. This was a poor sentence; I am not a poor man.)
2)When did I say that "stores are not entitled to make a profit"? - I didn't
3)When did I ask for "special pricing"? - I haven't

I stated quite clearly: "What I don't understand is if the dealer buys the speaker from Polk for $1100 dollars and the dealer feels he can sell them to me for $1450 why Polk will not allow him to. "

If a retailer says to me "I won't discount the speakers because I am entitled to a profit" I can respect that. I don't have to buy from them but I respect his right to set his price.

But what I get (here's a quote from an actual email from an authorized dealer) "Thank you for contacting us. Unfortunately, we cannot discount Polk
products. They are a restricted by the manufacturer."

The reply I got was not that they didn't WANT to discount them to make a sale, or they need a profit to stay in business, it was that they COULD NOT sell them for less.

MSRP (Manufacturer Suggested Retail Price) is just that --a suggestion. MRP (Manufacturer Required pricing) means that the retailer agrees to never sell for under that price, unless specifically authorized to, or they lose the right to sell the product. That's how Bose prices their systems.

I ask for a discount off the MSRP on most major purchases I make. My Sony HDTV, my Pioneer Elite DVD player, my Apple Computer, my dishwasher all discounted the prices between 5-15%.

So my choices are:
1)Pay retail
2)Look for another company to buy from

I'm still on the fence.

Jstas wrote:

If you would stop crying about it and save the extra money, you'd have the LSi's.

I find you distasteful. I can only hope you do not have a child who participates in team sports. He will be disappointed with your advice.

Good day.

tomhayes

CrBoy wrote:

They don't have to do it... it's their call if they want to do it. that's the beauty of Marketing... OPTIONS.

They are not telling em they don't want to discount the speakers - they are telling me that Polk does not ALLOW them to.

I agree with your statement. If they WANT to sell them to me for under retail we shoudl be able to negoiated a price.

That's all I want.

hoosier21

what are the other 20 brands of speakers you can get at discounted prices?

jdhdiggs

tomhayes wrote:

I find you distasteful. I can only hope you do not have a child who participates in team sports. He will be disappointed with your advice.

Oh boy, another sig for Jesse. :eek:

scottnbnj

humbly, just from reading the thread, it sounds like it's not really the price or how they sound or look or their warranty stacks up to the competition, but that you aren't allowed to have your negotiation.

why don't you just pretend the m,uh,rp is $1000 higher. then you can pretend to have a masterful negotiation and amaze, even yourself, over how you brought polk and the dealer to their knees.

)

CrBoy

tomhayes wrote:

they are telling me that Polk does not ALLOW them to.

MAYBE this is not true, and they are just saying this to avoid any war between you and them, because they don't want to give you a lower rate.

On the other hand this might true... so :rolleyes:

Jstas

Wow.

Why is anyone even bothering to try and help this asshat if he can't even understand why a company would be interested in preserving it's market base through fair price controls? Just because he's too cheap to pay retail and thinks he deserves a break, Polk Audio should remove thier rules for protecting thier retailers and distributors from unfair business practices? Sorry, that doesn't fly in my book. Let the cheap **** go and buy something that he thinks is worth his time.

CrBoy

Jstas wrote:

Why is anyone even bothering to try and help this asshat...

Because I don't have anything better to do and i'm bored at work...

He's entitled to ask this kind of questions, there's no reason to bash him. He will understand why he can't get a discount, sooner or later...

beardog03

Maybe polk said that they would sell them to the retailer for x amount, but the retailer must sell for this amount..
you buy this many and,
this is your price..
this is the market price..

nothing more , nothing less..

deal

business is concluded...


Buy them, and enjoy them....

and get off the fence before you fall and hurt yourself..

oh , and by the way ...Harley Davidson Motorcycles are the same way.
price is not negotiable



although I could be wrong....it happens..!

BIZILL

he should be like me. get the product on ebay for far less. hopefully i don't run into any warranty issues. i don't find many if any sales on polk gear at circuit city. so i turned to ebay, as always.

1. no, i don't have money for full retail price.
2. i don't care if circuit city has sales or not.
3. i don't care if polk has a set retail price resellers must adhere to. if anything, it would show that they have faith in their product and makes it seem prestigious.

AsSiMiLaTeD

Jstas wrote:

Wow.

Why is anyone even bothering to try and help this asshat if he can't even understand why a company would be interested in preserving it's market base through fair price controls? .

Because not everyone's an **** like you.

I was going to say the same thing in another thread I was reading yesterday, and thought better of it as I didn't want to derail that thread. Well, this one's probably not gonna end up very constructive anyway, so here goes...

I find you to be one of the most confrontational, rude, and arrogant people that I've ever come across, period. Your lack of tolerance for other people's difference of opinion, ignorance, or questions that you don't like is ridiculous. Anytime someone doesn't agree with you or says something you don't like, you get all snappy, and there's just no need for that.

No doubt you'll dig around and find some exceptions that discredit that last statement, but overall that's an accurate assessment, and your general tone in instances where someone is not in agreement with you is, well, confrontational, rude, and arrogant.

Granted you typically bring many good points to the table and usually know your stuff, and maybe you are smarter than everyone else, but that doesn't give you the right to talk down to everyone. Your language and especially tone are simply uncalled for.

tomhayes

Jstas wrote:

Wow.

Why is anyone even bothering to try and help this asshat if he can't even understand why a company would be interested in preserving it's market base through fair price controls? Just because he's too cheap to pay retail and thinks he deserves a break, Polk Audio should remove thier rules for protecting thier retailers and distributors from unfair business practices? Sorry, that doesn't fly in my book. Let the cheap **** go and buy something that he thinks is worth his time.

I guess the above reply means there is not any moderation on this board.

Let's dissect your reply:

"Why is anyone even bothering to try and help this asshat if he can't even understand why a company would be interested in preserving it's market base through fair price controls? "

First - am I not an asshat.
Secondly you state that MRP is a fair price control. I think MRP is limiting to the consumer but I would agree that MAP is fair.
Thirdly- you say that Polk is' interested in preserving their market base'--but I have no idea what that means. Do you mean "preserving its brand", or “keeping their dealer base’ or what? They need to sell speakers to maintain their place in the market and if they disallow any and all dealer freedom in the form of price negotiation they may not meet that goal. There is no base if no one buys. Price negotiation can be used as a tool by a dealer to make a sale. Sometimes the form it takes is a percentage off, other times the form maybe a lower price on an additional product or service.
Fourthwise (yes, that's a word) you think I do not "understand" you position. I do-- but I disagree with it. Frankly I don't really care what YOU think. You seem like an unstable person.

More from you:
"Just because he's too cheap to pay retail and thinks he deserves a break, Polk Audio should remove thier rules for protecting thier retailers and distributors from unfair business practices? "

1) I am not 'too cheap' but I will try to get a lower price if possible. My responsibility is to pay as little for as much as I can. The dealer's is to sell as little for as much as he can. No one is evil in this situation.
2) How is allowing authorize Polk dealers to negotiate at their discretion an advocation (maybe not a word) of unfair business practices? The only unfair (in my opinion) portion of this is for Polk not to allow dealer negotiation. Since Polk is not a monopoly there is nothing illegal about it so it's their choice. I feel it's a bad choice.

More from you:
"Sorry, that doesn't fly in my book. Let the cheap **** go and buy something that he thinks is worth his time."

A) You honestly, no flame, sound very maladjusted. Are you retarded mentally, emotionally or both? I can excuse the first, ignore the latter and pity their union (like your parents pity their coital union that caused the pox they call you.) But hey, NO FLAME HERE.

I hear your opinion -- You think I'm an ungrateful idiot who needs to prostrate himself at the altar of retail pricing. I get it. Honest.

My opinion is that MRP is bad for the consumer.

Let’s end our interaction now.

BIZILL

we need another group hug thread. open letter to the forum type thread.

fireshoes

There are many brands that have this practice. Just check the brands that excluded when a retailer runs an "all on sale" promotion. Current and pst brands where I work that have used unilateral pricing are Polk, Bose, Nakamichi (not even employee discounts), Velodyne, and RCA for electronics, as well as Subzero, Viking, and Wolf in appliances, and I think Stearns & Foster in furniture. I'm sure there are others.

There are both good and bad reasons for it. In Tom's case, he feels he deserves a discounted price. From the retail point-of-view, it is good though, because it keeps margins higher so the store can stay profitable. Look how many stores have been closing lately (Good Guys, Ultimate, Tweeter). If you can get a higher margin on one brand, then you are more likely to sell (and carry) that brand. My company recently stopped carrying Infinity. I don't have much doubt that part of it was attributed to the overall lower margin of Inifinity, because at least two competitors carried them in most of our markets, so they were often marked down 5-15%. So they got the boot and we started carrying a more exclusive brand. So maybe you have to pay a litte more, but it helps keep your dealer in business and carrying Polk Audio.

If you still feel like you need a discount but want to buy local, maybe they can give you a little more off some other stuff, like cables or a receiver.

Also, ditto what Polkmaniac said above.

PolkThug

The question has been answered. This thread is now closed.

mantis

Damn... How things get this way is behond me...

tomhayes,
It's your call dude. At full retail, the lsi series are unmatched in my opnion. the price you have to pay for them is money well spent. If you can get them used off ebay or audiogon , hell even in here you will find them for sale from time to time, go that route.
I WILL SAY THIS... I challenge you to buy better speakers then the lsi's. In my opnion, you can't. there price point is awesome. thats what makes them stand out over every other speaker in it's price class.

If Tweeter wants to sell you them at a sale at a later date, it's up to you if you wanna wait. Just like anything else, if it's on sale, you get it for that price, if it's not ,then the dealer has every right to sell them for retail and not discount. Tweeter is a huge company and doesn't need to discount there speakers. But they do have sales and great deals all the time. Talk to your salesman again and see what they will do.The deal is the deal and you have to agree or not. Tweeter isn't the only place to buy Lsi.

Good luck with your speaker quest.

Dan