Another audio dealer closes his shop


After being in business for 35 years audio and video dealer GNP of Pasadena, California closes it's doors. The owner told me he has to sell 30k a month in goods just to break even. He says it's not worth being in business just to break even.
taters

Showing 1 response by theo

At the end of the day it is sad to see any business close. I am sure the owner of this shop you mention could blame the internet and probably be correct in doing so. Some dealers never got out of the "snobbish" attitude and they really have become dinosours in the audio business. Some dealers feel that MSRP is the price and lose business to the internet by retaining 100% of the profit margin an sales never made. But the sad truth for any customer is that with a diminshing availabilty of showrooms to audition equipment has it's negative effects. First you really don't know what you are getting and second, service.
Although saving 10-20% through an internet purchase, the possibility of a loaner while yours is being repaired vanishes in the bargain. I don't feel that I should have to pay full margin in a competitve market, but I will pay more for the exact product to help keep a business viable to offer future service and problem solutions as well as sampling before buying. The trend seems to be the guy that operates out of his home and many good dealers have made that a successful transition. They reduce their overhead and can be more readily available plus they crate a more "homelike" atmosphere that I find friendly and comfortable.
Again it is sad to see any business fail.