2. misc-audio
  3. 170550-1285

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 5 responses by northman

northman
236 posts
 
@deadhead1000, your brain has been fried by too many hippie drugs and lazy jams. Go back to Haight/Ashbury! (Hey now, my friend, I am SO kidding! I can't count the shows I saw between 1978 and 1995. I *still* miss Jerry ....)

There's a strong undercurrent of nostalgia in this thread, and there's nothing wrong with that. I'm of that age that used to haunt stereo stores in the late 70s and 80s. Even mid-sized cities had three or four stores back then and even a grubby teenager like me could walk in and listen. And dream. And lust.

It seems to me that overall the equipment has gotten better and the high-end is brilliant. It's vastly easier to buy and sell used equipment. There's more access to information, and forums like this are a remarkable way to share the hobby and learn a lot. But buying online is a lousy substitute for the live, sensuous experience of a good store and a well-informed, honest owner.
northman
236 posts
 
It may be every man for himself when it comes to purchases but we're all in it together when it comes to the broader world of stereos. This forum is an extreme outlier when it comes to commitment, experience, and budgets. Folks here are comfortable spending thousands of dollars on equipment they've never seen or heard because they know how to research, know where to get trusted recommendations, and know they can resell anything after a few months of listening. 

Out there in the real world, few people will take that route. What sane person who has little experience would spend $5,000+ on speakers without hearing them? The esoteric high end may not be too affected but, without stores, the mid- and upper- ranges will continue to shrink. It's not a pretty vision.
northman
236 posts
 
We seem to be universally blaming the tire-kickers who end up buying online, and we seem to be debating the qualities of dealers who can be unwelcoming and condescending.

The assumption is that it's cheaper to buy online. But is it? Which high-end companies allow their equipment to be sold online for less than MSRP? Which online sellers sell their equipment for less than a brick-and-mortar store? I haven't noticed Moon-Audio or Audio Advisor discounting much, but maybe I've just missed it. Or are we talking about the grey market here?
northman
236 posts
 
Thanks. I don’t see much to do about used equipment, though I can see why that’s a problem for dealers. As for authorized dealers, it makes sense to me that the companies should either not allow authorized dealers to sell demos/refurbished ... or brick-and-mortar stores should also sell demos/refurbished. (Obviously they DO sell demos and trade-ins.) It also seems to me that brick-and-mortar stores can set up online sales for such items, as many already have.

I’m simply trying to figure out where the problem is here. The used market and the grey market undoubtedly detract from dealers’ sales, but that’s simply an escalation of a market long available to buyers. (I don’t mean to underestimate that; of course the internet has dramatically enlarged that market.)

Over the last couple years I’ve had long talks with three highly-regarded, multi-decade brick-and-mortar store owners. All said that it’s a much harder business than it was twenty+ years ago, and all were resigned to selling HT stuff. Interestingly, none of them mentioned tire-kickers or internet sales. They talk about the changing values of their customers, saying that younger people these days (under 40) simply aren’t as interested in two-channel systems as they used to be. As far as the mid- to hi-end market, I wonder if that’s really the problem that dealers are facing.
northman
236 posts
 
That sounds right.
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