One big reason why brick and mortar high end audio dealers struggle.


I live in a major metropolitan area with several close by high end stores.  I never go in any of them.  A dealer just opened a new location 5 minutes from my house.  Major dealer with Magico, Constellation, McIntosh and many other serious brands.  I went by a couple weeks ago mid day on a Friday.  Door locked, nobody there.  I call today to make sure they are actually open for business.  Guy answers the phone and says that they were out on an install when I can by and that they are short staffed.  No problem, I understand.  But from that point on the guy takes a subtle but clearly defensive and pissy tone.  He states that they recommend setting up an appointment for customers to view their products.  Sure, and I recommend never going there.  Off my list.  Back to buying online.  Here's the issue.  So many of these high end dealers are only after the wealthy guy that comes in, spends less than an hour there and orders a complete home theater or 2 channel system and writes a check for $50k or more on the spot.  That's there customer base.  I get that it can be annoying to allow a bunch of lookers to come in and waste their time and not buy anything, but isn't it good for business to have more customer traffic?  If someone comes in, spends an hour there, listens to some amazing gear and then buys nothing, doesn't he tell his friends and family and coworkers about his great experience?  Isn't this word of mouth valuable?  These brick and mortar dealers almost universally are unwelcoming and unfriendly to people that want to come in and just look and listen and not buy.  Sorry, but the vast majority of potential customers are not going to spend 20 minutes by private appointment to order their new $100k system.  Why not encourage people to come and spend time with zero pressure to purchase.  I have purchased dozens of high end speakers and electronics over the many years I have enjoyed this hobby.  I might well buy from a dealer if they were actually nice, friendly, and encouraged hanging out and getting to know their gear.  But they don't.  I would never go to a high end store that required an appointment.  Because this creates a huge pressure situation for you to purchase that day.  I'm not ready to purchase on my first visit.  And neither are thousands of other potential customers.  If they can make a good living just catering to the wealthy one time buyers, then, ok, good for them.  Doesn't seem like they can though since so many have gone under.  Maybe it's time to try a different approach?  Step one, no commission sales people.  Step two, welcome people to listen and not buy anything.  Encourage it.  This will create positive word of mouth and significantly increase customer traffic and ultimately create more paying customers it would seem.  I don't get it.  Rant over. Please don't respond that you have an amazing dealer.  I'm sure they exist but they are the exception.  What I am describing is the typical customer experience.
jaxwired

Showing 1 response by mijostyn

The five years I sold and installed Hi F gear in Miami, FL. That was in the late 70's early 80's. Home theater was just starting to develop. Most stores were 2 channel only. Early on I worked at Luskin's Hi Fi as a commissioned salesman. Later I worked for myself installing big systems in the houses of very wealthy people. Most of my equipment came from Sound Components, Miami's only real High End store. I got my own equipment at saleman's comp which could in some cases be less than the store payed.

Commissioning salespeople is OK as long as all the equipment is commissioned at the same rate. Luskin's use to "spiff" it's salespeople for selling certain gear which they made more money on and unfortunately it was usually the inferior gear that got spiffed. It is very difficult for small retail businesses to run on salary. 

In Hi Fi there are two basic types of customers, those that are price sensitive and those that are convenience sensitive. Today, those that are price sensitive and those that know what they are doing and do not need any help, shop online. The convenience sensitive people shop in local stores. Today these people are usually more interested in theater and want one set up in their home. Smart dealers evolved into comprehensive theater stores that just happened to carry Hi Fi gear. This requires a lot more skill and attention in terms of carpentry and installation. It also involves much more expensive displays increasing overhead. Tire kickers are a PITA and the stores do not have time to deal with them. They are out doing installations with the minimal help they can afford. Many of them are one or two man operations. They have to do business by appointment and their customers appreciate this and like it. Those of you who do not like it are welcome to shop online. The stores would prefer you did. If you want to kick tires go to Best Buy and have at it.