'In Home Dealers' are the future?

The local Audio Dealer just closed his retail store, forever, after a gradual and painful decline in sales for several years in a row. Defiant in the belief that it would "turn-around", he is now selling audio equipment from his Home. Presumably his relationships with manufacturers and distributors continues unabated. After all, what difference does it make if he operates from a retail store-front or in the comfort of his living room? Since high-end audio equipment retail prices are declining rapidly, guess any sale under any circumstance is OK with the manufacturer/distributorship network.

My brick and morter dealers have been wonderful and I support them 100%. Due dilligence, one cannot get a full sense of system synergy when adding a new product until after having added it. My dealer has saved me several thousand dollars by allowing me to demo products in my home, at no charge and return them if they did not work out the best. These were all very good products but what might be great for one person is not for another. As far as 40%. Yes, that is a typical margin except some small items and some cables may be higher. A very, very well run business that can reduce overhead cost to 25% margin for break even is doing very well. Add that many long standing dealers will make deals of 5%-10% off and that leaves about a 5%-10% profit margin. Not get rich quick figures. Now, if you don't have a good dealer in your area or have not been able to develop a good relationship with a dealer thats too bad, your missing out. Just don't lump all dealers in the same boat. You may even find a dealer from a long ways away that can be very supportive and helpfull. It's worth it.

The era of the bricks and mortar dealer appears over. Many of the 'home' dealers, are people who have turned their hobby into a sideline or their business. Some are a lot less professional, and less committed than others. The model is cheaper, but is it better?

A couple of thoughts...

It would seem to me that the fact that you are always working with the owner is an advantage for the customer with home dealers. Most home dealers would seem likly to represent what they truly appreciate as opposed to buying to have items at different price points as stores do.