Originally Posted by drmilktruck
Cost is usually 50% of MSRP so a profit of 15-20% is reasonable. However the board sponsors like Rocky at Street Sounds are usually your best bet for a good deal.
This isn't actually correct. The cost (the price the retailer pays) of an item and its MSRP (list price- in a few cases MSRP and list are slightly different, but rarely) are not really related.
I can't be specific because of my place of employment but I can tell you the mark-up (percent over cost) is on average about 35%. The mark-up can actually vary quite a bit from one guitar to the next, and you'd be surprised at how little some high-end guitars make.
On average cost is less than 50% of list/MSRP but on higher end guitars the cost can be so high the item makes less than 15%.
When you take into account 10-15% off coupons, you can see why there's usually a limit of a maximum savings of $500.
I have known more than one new PRS to sell with less than 10% profit and in at least one case, a LOSS because of discounts.
So yeah, getting about 25% off retail is a killer deal, assuming its mint.