By Val J. Golding
Is the ugly head of price wars and cut-throat sales about to raise itself? We sincerely hope not. these are bargains in which no one gains. If a dealer can move enough data in a given period of time, he can make money, even with a profit margin as low as 10%. But in order to do this, he must also cut overhead.
This is usually accomplished through reductions in sales staff and services to customers. needless to say, it is the customers who stand to lost the most. Service costs money. And the product is a loser too. We have seen good audio products go down the drain with uncontrolled price cutting. And this is not to say a dealer can’t wheel and deal a bit, but there are limits!