Retail Buying - Reality Check


Like all of you at some point in time, I caught the Audio and HT bug. I started out at the usual places - Hi Fi Buys, Best Buys, etc. and moved on to the niche, locally owned hi end audio and HT boutiques. There I met generally more knowledgeable salesmen (no women yet). I also started doing my homework out on the web and came upon great sites like Audiogon and AVS Forum to name a few.

Your knowledge and experience has been invaluable to me. Unfettered by the product lines you have to sell, you provide a far more level playing field of unbiased opinion.

Here's my dilemma: I am a small business owner myself, and I value local market presence and customer relations. I'm even willing to pay a small premium for this intangible. However, when the quotes came back from 3 different retailers in Atlanta ($65 -80k), they were all for MSRP plus tax plus design install and misc. such as clips and straps ($250-$500 worth!)

Now most of the hi end equipment today has "burn in" periods of several to hundreds of hours before peak operating performance is obtained. So, buying new at full MSRP also meant getting inferior performance for the necessary burn times. So no big benefit (except some warranties) to buy new.

By purchasing from sellers on sites like Audiogon, and purchasing nearly new or sometimes new products, I have saved $16,000 plus $1,000 in sales taxes on approximately $50,000 of my quoted MSRP prices. I'm not done yet. I also have the flexibility of buying the exact product line I want, not just what my store has to offer. There is great pressure in the retail setting to go "one stop shopping" at your store of choice.

I understand these stores need to make a profit. However, 50% markups on items that they don't keep in stock and have to special order, seems out of line to me.

Caveat emptor is certainly a key consideration in on-line purchasing, but to date, through careful checking of prior seller transactions, prudent payment techniques and telephone conversations with the seller to allow me to make some kind of character call, I have had nothing but outstanding, as promised transactions.

I hired a HT acoustical designer and a certified installer and I couldn't be happier, except for one thing. I still feel a little guilty about not buying from the guy with the storefront who spent time with me. I just wish they'd recognize where they do and don't add value and charge accordingly.

Anyway thanks guys, for the great education and advice you've provided me.

What say you?
rogocop

Showing 1 response by mezmo

Personally, I feel no obligation to subsidize local high-end dealers out of either some bizarre form of guilt or because, for some reverse-trickle-down, voo-doo-esque theory that I don't buy, I believe I am subsidizing the entire high-end industry. None whatsoever. The fact that there's a viable and vibrant market for used equipment means only that the market for equipment at all levels is and will remain viable and vibrant -- so (even if the middle-man is incapable of competing or surviving in an increasingly global market defined by consumers with unprecedented power to perpetuate the useful life and value of products through communicating with large groups of other consumers to trade and resell items) I can guarantee that manufacturers will find a way to continue getting their products to people who want them, as long as they continue to want them, even if they have to come up with new means to do so. I’ve bought a lot of equipment new from dealers, but now I almost exclusively buy used through Audiogon and other online sources. It’s a market economy, folks, best product for the best price takes the prize.

It’s just that simple. I could easily adopt a more apologist stance and reason that: (a) I would never, under any circumstances, purchase a Meridian CD player at anything less than used prices, (b) I considered Meridian only because there was a used market, (c) I got one, and (d) because I and people like me purchase used Meridian gear, the market is better able to support retail pricing due to the fact that the resale value is an inseparable component of the product -- so a viable used equipment market, in no small part, supports the hyper-inflated retail market. Also, cites like this one do at least as much to create desire and fuel the retail market as they detract from the retail market simply by increasing the knowledge and power of the consumer (which is what they do). But all of these arguments, any many more like them, though true on many levels, miss the essential truth -- best product for the best price wins. People’s conceptions of what is best may change from moment to moment, but if my personal conception of “best” happens to leave the local dealer out in the cold on any given day, so be it. I don’t see the need to rationalize or apologize for it.

When I walk into a shop just to check out how something sounds and with no serious intent to buy anything, that’s what I tell people. Simple, straighforward, no BS. Their decision as to how they want to spend their time with that info is their own. That said, I've walked into a store with that intention and walked out with new gear -- "best value" is fluid. No apologies.