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

Another perspective.

-You work six days a week in a retail Stereo store catering to audiophiles who admittedly are not usually well people.

-When not assisting the public you field calls from strangers with "a quick question"

-Setup 4 sets of demo speakers for a guy you've never seen before who asks  about "demos, price matching policies & same day delivery.

 

Gotta walk in mile in the other guys shoes before you throw the 1st stone.

 

 

I still say a majority of the decline can be attributed to generational proclivities. There's virtually little to no input from any of the thirty-somethings in this thread. 

Blaming "tire kickers" (the first I've heard this term applied to audio shoppers was in reading this thread) wholeheartedly for this is unfair, just the same as blaming snobby salesmen. 

I can see the issue from both perspectives but I have to offer an analogy of car shopping for further clarification:

The shopper knows full well what they can reasonably afford. Over 90% of the average demographic will purposely avoid entering a Bentley/Rolls Royce or Lamborghini dealership because there's nothing there affordable (this is the equivalent of visiting an audio shop you know has stratospheric systems in there that you know you cannot afford). You will, however, have persons that are either serious ("I want an S Class Mercedes S65 AMG Black Series with custom Designo leather interior, upgraded wheels and Burmester sound system") and those that are browsing (or "tire-kicking" as some pejoratively refer to them). The browsers, in my opinion, are comparison-shopping, as they have more than likely visited other dealerships and are looking for the best value for their money. 

If you're wanting to purchase an upscale luxury vehicle, will you only visit the BMW dealer if you don't know precisely what you want? Wouldn't you read internet reviews, watch review videos of the interested vehicles? Wouldn't you also visit Mercedes, Lexus, Audi? Someone will get your sale. You may have really liked the features and performance of the Lexus but the salesperson treated you as a "waste of time" so you decided to buy the BMW instead because, not only was the vehicle comparable but the service was more accommodating. The salesperson realized the customer was making an important decision and spending a large amount of money and didn't want to make any mistakes. True, this does not bode well for commissioned sales staff, but it's the nature of the business. You never know if that person will actually return and purchase from you because of your patience. Not everyone is a walking sack of money (even if they're in a BMW or Lexus dealership). The internet direct-order equivalent for something like this would be Carvana or similar.

Apply this to high end audio and you'll get a clear picture. The disadvantage of high end audio is the lack of financing options industrywide. This one aspect alone would expand the customer base (especially for millennials already wrestling with student loan debt). Until then, every high end salesman is Captain Ahab.

 

In other words don't go looking at a Focal Grande Utopia/Naim system with Martin Logan/Benchmark money. As much as I would want to hear a pair of Focal Grande Utopias, I couldn't just go down there and expect them to turn them on for me (if I don't know the owner). For sellers, don't write off a customer as a waste of time because they're just listening to a system. They probably traveled from out of state to listen to it, and if it is not an "appointments only" type of establishment, it makes sense to accommodate this because this person may return after they've done their comparison-shopping. Service is expected to be paramount in brick-and-mortar establishments. Not every customer that walks through the door of an establishment will buy something. Maybe that's my millennial logic.

I can tell you why some dealer succeed while others struggle. Dealers who are successful number one work hard, very hard. They visit their customers homes and set everything up. They have a consistent approach where the speakers they sell, their components and cables and accessories all work well together to create synergy. And again, they go to peoples houses and set it all up with the knowledge of how to deliver great sound. They also focus on established lines *people want to buy." They do not chase the flavor of the month. They are relationship focused, both with their customers and their vendors. They have demo items to loan out and demonstrate in their stores. They often work late nights *at their customers houses* because successful people work during the day, they avail themselves to accommodate their schedules.

Dealers who are not successful tend to be lazy from their customers perspective. They don’t go to peoples houses to set everything up, instead they glad hand their customers with a product and a hand shake, no in home set up, and often times no chance to audition before purchase unless in their store that often times does not sound all that great. They waste time with non serious customers or they cannot tell the difference between a real audiophile and a poser. In short they understand neither high end audio or business so they pick the wrong lines, can’t get good sound because they are clueless, they spend too much of their profit and so, have thin demo inventory and they don't know what they are doing.

Yours in music,

Ted Denney III Lead Designer/CEO Synergistic Research Inc.