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Getting off the original topic but here is how it works. Typical manufacturer costs are 25-35% of retail.
Example we pay $100 for an item, retail dealer pays $60-70, the wholesale distributor pays $45-50. On high tech products such as high end mounts, scopes, eyepieces and such all have much higher margins, where the retail is $150-300 for a comparable $100 item,(think Apple, TeleVue, AP )It gets to the point where you start paying much more for that last 5-10% performance uptick. Sure the costs are more at companies that use cutting edge tech and pay for the engineering and associated costs, but if the perception is you have a superior product you can charge almost what you want. It happens in most industries.

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Sorry, but you are dead wrong.

I considered becoming a dealer for a couple of brands. I got their dealer vs. sale price lists. What I imagined was the higher ticket items had good margins, so as a sideline I could have a little business selling mounts and telescopes, and though it would cost a bit to get started, I could maybe swing it with one trip to UPS with a few large items per week. But that just isn't the way it works.

I can't say who my candidate companies were because I signed a Non-Disclisure, but what I can say is they were all consistent: the highest price gear has the lowest margin. I mean 10-15%, where you have to wonder how you're going to cover your own handling costs and break even- because, mind you, you're trying to make that money after you put up the 85-90% of going rate to get your hands on it to sell.

What has the healthy margins to keep dealers going? The little kit scopes for $200 or less. Eyepieces and some other small accessories have pretty good margins. Now, before you start jumping on dealers, you're still only talking a small amount of net profit per sale, so you would have to sell trainloads if these things to make enough to make a modest living.

Now, if your sales meet certain thresholds, they start requiring you to buy the high ticket/ low margin gear and sell it. So now you know why little mom and pop shops will have a few of the little scopes and none of the high end stuff; they're doing what keeps the place open.

You should have real respect for the dealers who stay at it for the long term and support this hobby with square deals and responsive support. It's a labor of love.

-Rich

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Ya, the CGEM or Atlas is looking better to me. But i'm anxious to hear more reports.

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Wow, just noticed the price increase. I feel heart broken. What looked like a great deal, now doesn't. Especially considering the problems reported and the less than stellar worm gears.

Not saying its a deal breaker, but it is definitely no longer a no-brainer.

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I understand your analogy Lee, but if I understand Zombie's POV then that's the one I have to agree with. The LX80 was supposed to replace the LXD-75 so it should've been in the CG-5 or LXD-75 price range. But once Meade increased the price, it put it in or closer to the Sirius/Atlas/CGEM price range. I'd rather have the more mature and proven mounts rather than an untested and unknown new mount from a "recently" struggling company.

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I understand your analogy Lee, but if I understand Zombie's POV then that's the one I have to agree with. The LX80 was supposed to replace the LXD-75 so it should've been in the CG-5 or LXD-75 price range. But once Meade increased the price, it put it in or closer to the Sirius/Atlas/CGEM price range. I'd rather have the more mature and proven mounts rather than an untested and unknown new mount from a "recently" struggling company.

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