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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 rlwainwright

rlwainwright
1,904 posts
 
I've been on both sides of the counter as salesman and consumer and here is my take:

Some store owners are total jerks - I lost several sales when working at a high-end downtown DC boutique because my cheapskate boss thought that giving a $50 discount on a $1,000 piece of gear (a lousy 5%) was too much. I'm sure that money walked right out the door and was spent somewhere else that afternoon.

Some shoppers are total jerks, too. They pick your brains, use up your time, and then buy used or shop your price all over town. That's life, a good salesman learns how to sniff out these worms early and broom 'em.

When I sold a full-boat system to a customer, I threw in the delivery and basic setup. They usually gave me a tip and everyone was happy. It also gave me a chance to scope out their house and see if they had any other entertainment needs that were unmet.

In addition, my retail-paying customers got free loaners if their equipment needed to be serviced and were allowed to take home equipment for demo, bargainers were out of luck. Plus, we'd even take in stuff on consignment to allow them to trade up. These should be the incentives for paying full-boat.

I think that if more store owners were willing to codify this stuff and show the customer how dealing with them has its advantages, they could close more sales of all types. Let the customer decide how much care they can afford and price the equipment on a sliding scale accordingly....
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