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How much do Fender CS dealers add to the quote for profit of their own?

Discussion in 'Stratocaster Discussion Forum' started by SurfErDud29, Jan 9, 2020.

  1. SurfErDud29

    SurfErDud29 Strat-Talk Member

    Jan 7, 2020
    I've heard that different dealers offer different prices for the same build/quote as they each have to make a profit themselves, is this true? Or is the CS price/quote the same as what they sent to the dealer?
  2. AlexJCRandall

    AlexJCRandall Senior Stratmaster

    Sep 11, 2012
    If you are a retailer (of any product really), then you add the same percentage generally speaking to every item you sell. The only ones that don't go out of business quickly.....this is business 101 or before.
  3. Wrighty

    Wrighty Most Honored Senior Member

    Mar 7, 2013
    Harlow, Essex, UK
    Does depend on the manufacturer / dealer arrangement. Some manufacturers would sooner their products sell through good, reliable retailers who can ensure that they are set up properly and that the new owner gets after sales support. In this way, the manufacturer’s reputation isn’t tarnished by badly adjusted equipment reaching a customer who has no clue as to how to make a minor adjustment.
    To this end, a producer will sometimes agree to not sell to the public at below the ‘normal’ retail price.
    Though shoos do try to work within a certain gross margin across the board, sales prices are generally calculated using this as a starting point and then adjusting in order to remain in business and competitive, as mentioned, the former being the important one.
    So, to sum up, a Custom Shop should cost the same direct from the source or from a retailer.
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