Negotiating and custom car audio installs
#1
Negotiating and custom car audio installs
I'm going to be getting a system put into my Porsche. I am working on quotes with a few reputable vendors in the area.
Does one typically negotiate on these? As a trader, and someone with an eye toward value in general, it pains me to think that I need to just lift the offer on the equipment at full MSRP.
For example:
I am quoted speakers, head units, and amplifiers by all parties at full retail. These are all available for much less, new, if one takes a moment to look. For example: head unit: $1499 available <$1100, amplifier $599, available $380.
I have no problem with people doing premium work at a premium price. But I would like to pay for that premium work by being quoted an hourly rate and billed on actual hours. I find it undesirable to subsidize the hourly rate by paying enormous margins on widely-available equipment.
Any thoughts?
Does one typically negotiate on these? As a trader, and someone with an eye toward value in general, it pains me to think that I need to just lift the offer on the equipment at full MSRP.
For example:
I am quoted speakers, head units, and amplifiers by all parties at full retail. These are all available for much less, new, if one takes a moment to look. For example: head unit: $1499 available <$1100, amplifier $599, available $380.
I have no problem with people doing premium work at a premium price. But I would like to pay for that premium work by being quoted an hourly rate and billed on actual hours. I find it undesirable to subsidize the hourly rate by paying enormous margins on widely-available equipment.
Any thoughts?
#2
Pick a shop you trust your car with.
Realize they are not making an enormous margin - it's what it takes to keep a good business running and provide support (something your internet suppliers cannot give you). At the end of the day, a few hundred bucks to maintain the integrity of your vehicle and enjoy lasting support hardly seems like a savings at all. That's me.
Otherwise, get the best price you can and have your local hack install your stuff for you.
Good luck with that.
Realize they are not making an enormous margin - it's what it takes to keep a good business running and provide support (something your internet suppliers cannot give you). At the end of the day, a few hundred bucks to maintain the integrity of your vehicle and enjoy lasting support hardly seems like a savings at all. That's me.
Otherwise, get the best price you can and have your local hack install your stuff for you.
Good luck with that.
#3
As I said, I'm happy to pay a premium price for a premium service. What I am less happy about is the conflation of the service premium ($x per hour for installation) with the retail margin. I'd rather just pay a higher hourly rate and source the components myself.
The reliance on a model that subsidizes installation pricing with retail margins may be one reason bona fide shops are losing business, IMO.
That said, I certainly intend to go with a full-service shop, since all of the high end installers appear to employ this model.
Jon
The reliance on a model that subsidizes installation pricing with retail margins may be one reason bona fide shops are losing business, IMO.
That said, I certainly intend to go with a full-service shop, since all of the high end installers appear to employ this model.
Jon
#4
I've rarely seen a shop that meets my criteria on quality. Simply stated, it should take a Porsche Factory Tech to be able to discern where the factory loom starts and the aftermarket begins. No crimp on wire taps, maintain proper wire sizes and color codes, match the factory fabric wrap, find mating connectors...
Problem is that "high end shops" can be hacks, they just charge more. People that need shops to fix or install are not the kind that would think there is anything wrong under the surface. The turn the switch, look at the faceplate in the dash and say 'my shop did a fantastic job'...
I agree the margins are high- profit may not be, but at 30-40% on each item, they have great margin.
Maybe find an installer- and not a total shop...
My 2 cents
A
Problem is that "high end shops" can be hacks, they just charge more. People that need shops to fix or install are not the kind that would think there is anything wrong under the surface. The turn the switch, look at the faceplate in the dash and say 'my shop did a fantastic job'...
I agree the margins are high- profit may not be, but at 30-40% on each item, they have great margin.
Maybe find an installer- and not a total shop...
My 2 cents
A
#5
hey man, how far away are you from San Jose? This guy has a shop there and is known to be just a great guy that really goes the distance for his customers. Here is a link to his website:
Simplicity In Sound
And here is an install he recently did:
http://www.diymobileaudio.com/forum/...tml#post734219
So give him a call and talk to him if you're close. He also carries some really great equipment.
Good luck.
Simplicity In Sound
And here is an install he recently did:
http://www.diymobileaudio.com/forum/...tml#post734219
So give him a call and talk to him if you're close. He also carries some really great equipment.
Good luck.
#6
JD- im looking to do a system to add navi in my car too. here in the city everybody seems to be crazy on prices, im shopping ebay for equipment and then everybodys labor $ goes up when i bring my own stuff.... let me know what you decide to do.
#7
OP, what products in specific are you looking at? different brands have different distribution, so for example Pioneer will provide deep discounts to anyone who orders in an extremely large quantity, but if an independent shop tries to buy Pioneer it will cost them more than the very low internet prices for the same products, so in effect dealers cannot compete with ebay sellers who move hundreds of units a week.
However the downside to the internet is many of them do not carry the warranty at all and even if they say they do, many times you will have issues if you have any warranty problems, they will charge shipping both ways, you will be without that piece for possibly weeks. Not to mention that unless you removed the product yourself any shop will charge you labor to remove and reinstall if you did not actually buy the product from them, so it can very quickly cost you more.
The reason a shop will charge more if you bring a product to them is in case they run into issues while installing it, maybe the unit is DOA, or incomplete, and the installer has to spend extra time to find parts or bench test the unit, and if the unit is DOA the installer has spent time and cannot do anything.
Advantages from buying from a reputable shop, even if prices are higher, is that you do not have to worry about getting a call saying "your unit is DOA, we cannot complete the installation" because the dealer would just take out the unit that was DOA and use another unit from stock. Also if you have a warranty problem, a reputable dealer will not charge you for labor or shipping; and you will not have to wait for weeks. At our shop we usually remove the unit that is in need of warranty work and replace it with one from our stock (if possible) and the customer is all set to go the same day.
So just post up what parts in specific you are referring to and I may be able to give some input that could help you.
However the downside to the internet is many of them do not carry the warranty at all and even if they say they do, many times you will have issues if you have any warranty problems, they will charge shipping both ways, you will be without that piece for possibly weeks. Not to mention that unless you removed the product yourself any shop will charge you labor to remove and reinstall if you did not actually buy the product from them, so it can very quickly cost you more.
The reason a shop will charge more if you bring a product to them is in case they run into issues while installing it, maybe the unit is DOA, or incomplete, and the installer has to spend extra time to find parts or bench test the unit, and if the unit is DOA the installer has spent time and cannot do anything.
Advantages from buying from a reputable shop, even if prices are higher, is that you do not have to worry about getting a call saying "your unit is DOA, we cannot complete the installation" because the dealer would just take out the unit that was DOA and use another unit from stock. Also if you have a warranty problem, a reputable dealer will not charge you for labor or shipping; and you will not have to wait for weeks. At our shop we usually remove the unit that is in need of warranty work and replace it with one from our stock (if possible) and the customer is all set to go the same day.
So just post up what parts in specific you are referring to and I may be able to give some input that could help you.
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#8
Chris, valid points I would say. It would be nice to think all shops would act in such an upstanding manner, BTW.
BUT, what is the cost of this 'convenience'?
I had spec'd an install for my 996TT. Nav, BT, Sirius, Amps. Stock drivers. Quote was $6500.
I figured there was ~$2000-2500 in 'cream profit' in that quote. That is to say, buying all the parts from internet retailers (not fly by night dealers, but authroized reps that the factory confirmed) I was at ~3500. Add in the install cost - can't say what that should be, cause I've never paid it- but it was wiring the head units, and running wires to the speakers. There was a bunch of money left for 'warranty servicing', and 'what ifs'...
My point is that the argument of "sure you pay more for 'professionals'" is that you pay A LOT MORE, and we should- in general terms- understand what it costs to have the convenience.
A
BUT, what is the cost of this 'convenience'?
I had spec'd an install for my 996TT. Nav, BT, Sirius, Amps. Stock drivers. Quote was $6500.
I figured there was ~$2000-2500 in 'cream profit' in that quote. That is to say, buying all the parts from internet retailers (not fly by night dealers, but authroized reps that the factory confirmed) I was at ~3500. Add in the install cost - can't say what that should be, cause I've never paid it- but it was wiring the head units, and running wires to the speakers. There was a bunch of money left for 'warranty servicing', and 'what ifs'...
My point is that the argument of "sure you pay more for 'professionals'" is that you pay A LOT MORE, and we should- in general terms- understand what it costs to have the convenience.
A
#9
The cost of convenience varies greatly from product to product due to the variation in markups on products.
OP, you should go in and ask questions, if it is a good shop they should be happy to answer them. If not keep looking for a better shop. You may want to try regional forums to see if they can help you.
Or you could take a roadtrip to CT and we will take good care of you.
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