"If a dealer only makes a couple hundred bucks when he sells a guitar which has a list price of a few thousand, that's not a fair deal, but it's what consumers have been told to "expect", and that's bad business..."
It really just comes down to the fact that a customer is going to pay the least amount of money he/she needs to pay to get the product they want. Certainly there are people that would gladly pay a bit more to a local store that provides some perceived added value as opposed to, say, buying on the internet. But ultimately, as the old saying goes, people vote with their wallet and I don't think there are many shoppers around that worry much about whether a dealer/store is making a "fair"profit. If you were trying to sell me a guitar (or whatever) and told me that you needed an extra 100 bucks compared to the store down the street for a better profit, I would respectfully head back down the street.
You're absolutely correct. The
vast majority of customers have absolutely zero regard for the health of their local dealer. None. If your local guy charges you $100.00 more than some guy 1,000 miles away, the local guy is screwed. But these are the very same customers who will blame big box retailers when their local guy closes down. They will never, ever, acknwledge that the bigger reason the local guy closed is because they chose not to support the guy who ended up closing.
It's a Catch-22. The local guy can't sell you a guitar because you're not willing to pay an amount which affords him a fair and reasonable profit, and he can't stay in business if he doesn't sell guitars.
By and large, customers can be very cheap, and very stingy. They'll lament the fact that their local guy closes, but they'll buy a guitar from someone they'll probably never meet just to save a few bucks.
Sorry, but I just think it's disgusting, and it puts a lot of good people out of business.