Learn What Products Carry The Highest Margin
In our annual buying group roundtable, weasked group directors to help us find the money. Here’s the direction they took us in. For more insights from the roundtable, see the March issue of Dealerscope.
DEALERSCOPE: What mainstream products – specific makes and models – did your dealer members make the most margin from last year? What is this year’s high-margin product?
Jim Ristow, executive vice president of HES and ProSource: The biggest opportunities are soundbars, whether from companies like ZVOX or Bose or Definitive Technology, or from any of our speakers companies, with margins that are traditional speaker margins from 40 to 55 points, depending on brand. We’re promoting the experience of the demo, which the average consumer hasn’t experienced. That expands into wireless audio with sound stations and speakers that work off smartphones, and that provide a Jetsons-type of lifestyle at $300 to $500 per room, with audio-type margins.