Hello, audiophiles. I would like to get your honest feedback. Back in 2022, I had to close my business in Nashville owing to a series of unexpected occurrences (several deaths in the family, a rapid move to assist my mother-in-law, and a brain operation); all of this necessitated that I close the store in a matter of weeks. It was now a two-hour trek to Nashville. I worked as a glorified gate operator at a chemical company because that is all was available in our small town. I received an opportunity to become national sales director for an audio company, which would provide some income—not much, but enough to go back into the hifi business at the bottom level.
So now you know the incredibly brief version of the story. Here's the question: there is a little town about 30 minutes away that is booming and gaining more expensive retailers like Ulta and StarBucks. So here's the question.
Do you believe a small town like that might support an up-and-coming hifi business that sells receivers, speakers like PS Audio, KEF, and other manufacturers at a lower price point until the store can handle more expensive items? The closest "electronics store," Electronics Express, is nearly an hour and a half away. I have had an audio shop since 2003, beginning in Florida. Thoughts?
Honestly no I don’t. Most places in business now are places that specialize in full theater installs and are more construction based. 2ch in metro areas seems fine as there are so many people and people with money in the area.
the online retailers are far too strong. Places like Audio Advice, crutchfield, music direct all offer 60 day home trials. There are also a number of good direct brands (Arendal, etc) offering great products. Not to mention the average person is broke right now.
I have spend a good $20k at my local dealer but almost all of my resent purchases (about $10k each) have all been from online dealers as I am just not interested in what my local dealer carries. My last speakers I bought from a private seller ( no local dealer for the brand) and my subs I ordered direct from the manufacture at a fraction of what a dealer would have charged.
Funny you say that. I was a Dyn, Focal, and YG dealer lol. I’ve been trying to think of things that are different and appeal to a person that it’s their first time being in a real brick-and-mortar store. The internet is an unbeatable opponent, but I think there’s some to be said about hearing a pair of $900 focals for the first time or an electro-stat ML for 1800. Something new to them, different, and for a smaller town, kind of exciting. I mean you could do a Dynaudio Emit surround with a REL Zero fairly cheap.
"@nashvillehifiI have had an audio shop since 2003, beginning in Florida."
I suspect you already know the answer to your own question after 22 years, right?
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Yesterday I visited my local 55-years-in-business audio-only dealer. He’s survived and thrived. I’ve been going there for 45 years. What he stocks, shares, and sells to repeat customers is not regularly available online over the internet. 1) unique products 2) his experience 3) demoing it for them to hear it, multiple times, no questions.
He sells 2-channel audio products and services only. All tube. No solid state. None, not any of the amps, preamps, or speakers he sells are sold manufacturer direct.
Can you offer something unique, interesting, fun, locally - where people will come into your store and decide to learn and listen, then hand over hard earned cash and/or their retirement bucket-list funds for it?
I just don’t think a small town is a good place for high end audio. I wish that it were true. I live in a town of 80k people and the nearest place to buy the good stuff is two hours away. And I don’t think even my town would support such a store.
To be fair, Crutchfield is only an hour away but every time I’ve stopped in it’s like a ghost town. Their demographic is primarily internet sales.
What value are you offering over why can be bought online and in most cases at a better price? Mid-fi customers really don’t fuse about the best sound for their dollar, they just want a system to play their music. Brick and mortar retail is tough business.
In Santa Barbara (small town 100K, with high roller buyers in Montecito) we have two high-end stores, for one I am friends with the owner and his wife. I bought my 1.0 component system from the other, learned all the things I did not like about it, and although I tried to purchase from my friend (who also offered friends&family discount, specializing in Home theatre and home automatization) I have not bought anything in my current system from there, because they cannot provide what I am interested in. I was surprised that I could not get a Pass amp (made in California!), nor a Rega TT (MAJOR brand) in town. I tried to support my local businesses, but if they cannot provide what I am interested in, I look elsewhere.
Not one, and I mean any in the world, store has all the items I am interested in. So I purchase from assorted vendors (KTE: HoloAudio DAC, Upscale: VPI, PrimaLuna, EAT, Zesto, Rega Naia, other place: Pass amp) and direct (PearlAcoustics speaker, Dan Clark cans, Woo Audio HPamp).
A friend just asked me to help with a $500 TT selection to go with Klipsch nines (active bookshelf speakers). I don't think any are available in town (Uturn, Rega, Audiotechnica, MusicFidelity), so it will be on-line purchase, most likely. The local record store has some second hand stuff, but that is rather low end. Not sure BestBuy/Magnolia sells anything halfway decent.
You have 3 big competitors in the Nashville market covering a very wide swath of products including some esoteric gear. I say, the more, the merrier, but it's not my coin on the line. You sound like you are leaning toward the more affordable and that would be a good idea to me as the present players either have mostly high end or so out of the mainstream offerings that the average person would have no idea what those products were. And the prices of some of those esoteric pieces are sky-high to the average shopper. My, not so helpful, 2 cents.
I love your enthusiasm. But it doesn't sound viable. If you want to start up a business you would have to start on the internet (maybe)... get some income from home and without expenses. Then maybe add a little showroom in your house. As I type this, it doesn't sound viable. But you just have to start with zero overhead and build a reputation. Maybe great advice / sales on internet. Good luck. I have worked in startups... you need everything working in your favor... and a small town is not in your favor.
It's so tricky now because when I first started it was a very small area of course this is 25 years ago or 24 depending on however you want to slice it but when I first started I carried MIT Denon receivers in the such with the idea of going bigger for the time I had to close the store in 2022 I was selling octave Dynaudio, Simaudio, and Audio Research YG focal Cardas cables nordost and the such I had a very large showroom so I'm trying to think simple but I also want to make sure that what I'm going to invest won't just be money that gets burned up
Have you thought of visiting showrooms in similar-sized towns? You may be able to take the owner to lunch, to learn about what is working, and what to avoid. (As long as they don’t see you as a potential competitor.) Or, you may be able to identify someone who wants to sell their business; will you relocate? Pay attention to what you didn’t like, about your past life, and how you will adapt to the retail environment today. And your health, too. Good luck
I don't know how you would be able to compete with the internet for that range of products at that price point. The 'audio' companies that I see around for a long time in my market are companies that perform install of audio/HT/automation/in-wall speakers and/or sell very high-end gear that is not available from best buy / amazon and has higher profit margins with a very limited dealer network.
People can buy "simple" just about anywhere online now days.
My local dealer in a nondescript little town has buyers driving 2.5 hours from different directions [and wealthy Silicon Valley folks] just to buy AudioNote, Quicksilver, SoundLab electrostatic speakers, special turntables, cartridges, tubes, and vinyl stuff from him. Has some nice trade-in gear too they come for. What he offers is unique, not simple at all. More of the boutique or scarce stuff you don’t see listed by online retailers. This differentiates him from others online who sell the regular mainstream stuff x100 across the USA. This is one approach that keeps him going 55+ years.
I think I'm in the town you're talking about (maybe lol) and here's my .02c
I've been in the AV industry since 2008 and the first half of those were at a retail brick n mortar and the second half has been in CI world, so two different worlds. I loved the retail job as it let me educate people as to how music should be listened to and I got a lot of sales just on the demo. We sold B&W, Classe, Rotel, McIntosh, ARC, Wilson, various turntables, Transparent Audio and a few others. I miss that type of business and the relationships with clients that I made. The big draw back was people would use our demo rooms, our knowledge, our vendor relationships and even going as far as doing a home audition then going online and buying it (used or from some dude working out of his garage). It got old really quick.
Now in the CI world, selling high end products is very difficult because I can't demo it and it's way more cookie cutter. We're about to build a new office/showroom facility next year and I told the boss we need to do some demo room/areas in order to sell the good stuff.
So in summary, I will always encourage giving someone the ability to listen to a system (regardless of price) so they can get that experience on how music should be listened to. Also keep in mind, that in between here and Nashville are A LOT of musicians/celebrities that have no idea what it's like to listen on a good system so that would be a great market if you can get into it. I will echo some of the others by staying away from the usual brands (KEF, PS Audio etc) since the market is flooded with those brands but in that same respect I would stay away from brands that are to obscure for fear of lack of dealer support (Avalon is right off the top of my head: Great speaker, no support)
Your knowledge and ability to sell will be the keys to your success. There is an art and craft to retail. That extends to your selection of products. It will take time to develop your clients but it can be done.
If it were me, I’d also have a full line of headphones and associated gear. Give them an easy entry and a taste of higher end. I’d bridge the headphone and two-channel stuff with some great digital front ends at easy-entry price points. That would complement the two-channel gear. And have a small, constantly refreshed set of audiophile-level records.
It sounds like you’ve been through some serious challenges. Compared to that, you can do anything.
No, no, and hell no. If you're that desperate/determined to burn money, pm me for my address. Sorry. It's a different world now. I don't think that you can start up now the way you could 55 years ago (to use an example above).
Good to have you back! Sound advice as above. Consider visiting the (3) already established Audio shops -Atlier 13 Audio, Gestalt Audio and Hifibuys. Consult and talk with those guys to determine the current economy climate. The best news is that a new President will take office in January. Americans have the money but were afraid to spend it over the last 4 years. 2025 will change all of that for the better. Much better.
Second consideration, start small. Perhaps out of your home? You already have the experience and knowledge to test your local market. Nashville is growing with no end in sight. There is something to be said for auditioning Audio gear in-person.
Keep me posted on your progress. Season's Greetings.
I would only attempt that business if I had someone else's millions of dollars to use and I was in an affluent market. In a small town, that's just financial suicide.
How many Mercedes/ Aston Martin/ McLaren/ Rolex/ Chanel/ Gucci dealers are in town? Why would there be any of those brands there? They sell to the same type of clientele.
Look at the local real estate offerings. What's the average sale price of a home per sq. ft? What's the average sales price of properties?
Unless you're in an enclave like Carmel CA, or Aspen CO, I'd steer clear of that idea.
Unless you are looking for a hobby/job to close out your career, I would not envision owning a B&M HiFi shop as being a lucrative business venture, and particularly in a smaller community within 30 miles of a larger community where there are already three incumbents.
With the abundance of product information and reviews available on the internet these days, direct-to-customer sales, and manufacturers willing to allow 15 to 45-day return periods, the B&M business model is mostly obsolete. Exceptions might include locations in major cities where the buyers have more money than time, and companies handling a significant amount of internet sales that also have a physical presence such as Upscale Audio, Tweak Geek, and a few others. The model you remember from previously would be very hard to successfully replicate, IMO.
I stopped going to our local shop years ago (metro area pop. 250K+/-) when I realized that I would have to choose from only two or three brands, and that I typically knew more about the products than the salespeople, who seemed to mostly know only as much as their distributors had shared with them and about only the products they carried. The shop eventually closed over 10 years ago.
With the thriving music and recording industry in Nashville, there may be other types of opportunities for rewarding work. Maybe hook up with one of the companies that provides/maintains professional concert and recording equipment.
I think you bring out a very good point I'm 42 years old right now and I've probably got maybe another 8 or 10 in me my vision would be something to wear I could keep my overhead low I've run the entire shop all my life with one person me handling payroll bookkeeping taxes inventory and all that it's what's in my blood it's what I know how to do and my plan would be is to open a shop to where you could appeal to people that maybe just want something small and really don't know too much about it and all they see is ADS left and right but really don't know what they want and to have somebody explain it
The model that seems to work is a retired guy with some bucks and a passion to have gear around. Write off a portion of the house, be able to buy larger lots and sell off the dogs as "demos". Use the internet to meet audiophiles, cross dealership lines, sell, sell, sell. I get solicitations from dealers on this site. It's a warm lead.
Small town tough. Best of luck sounds like a passion!
I know several who maintained their company name, but now work out of their homes. The downstairs is the showroom and the upstairs is their living quarters.
I have no doubt a small town/population could sustain your business, 100K people or so, in a 20 mile radius. It's mostly about what would sell. A few expensive brands and components are boring to most of the public, you would attract maybe a few 100 people. I would think you would need a range of audio products and systems under $1000. You'd have inexpensive but quality equipment during Christmas time flying off the shelves. I would avoid brands Amazon sells.
But honestly, I don't know how much starting a business like this would cost, so I should stay out of it.
First, check to see if there are any audio clubs in your area. You already know the competition. Get to know some local audiophiles and see what they have interest in. Will you offer repair and set-up of systems and equipment? We recently placed our equipment in a well established audio business. The place the speakers up against the wall and I was a little taken back by that. Our components sounded fantastic but I asked why so close to the wall. The response was that the wife usually does not want speakers half way out into the living room. Our gear prices match the speakers and the streamer so that was a selling point.
You probably won't get rich in this business. Plus a lot of well established manufacturers are possibly not on stable ground either. If you are just looking to sell components, then I'd say no. If you are going to offer real full services then you could be OK.
Thanks for sharing your story. I hope everything works out for you. My suggestion with starting a business is to investigate the local market and see if there’s any interest. Social media is a great tool if you don’t know a lot of the locals. Best of luck!
I have a good friend of mine that’s had a in house retail business and online as well. He switched from higher priced gear to lower mid-fi gear and has not seen any pickup from making the change. He made an attempt to sell unique lower priced tube gear and hasn’t been successful at all with it. You are talking about spending the money for a store, inventory to include demo and stock units, sounds difficult to me. I have bought gear from my friend just to keep some cash flow coming his way, I just don’t see how you can compete with online retailers and the used market in this crazy economy that we are in.
That is a hard question to answer, are you just looking for validation or really asking?
What else is in the town? What is the demographic? What are the income levels? House princes/sizes? What is the area's disposable income like? Is there a thriving downtown? Where do you want to locate yourself? Busy area with walking traffic, or a destination spot? Any other competition in the sounding area?
Think I would talk to local record stores, and repair shops. Anything else that is "electronics" What kind of store do you want? Just new 2ch, or mix of new and vintage with a repair side? Do you want to sell media as well? As others have said, the main thing now is sound bars and home theater.
You can do any damn thing you want. You already have the knowledge base and experience. And why limit yourself to just the community around you? Let the internet and your soon to be website be your ’digital’ store also. I would venture to guess that most of us that still work do it at home remotely anyway. You know, think out of the box. You could be the middle man and use the tools you already have. The roof over your head, your pc/laptop and your internet service of choice. At least to start.
Most folks know what they want anyway before they listen and in this way you won’t limit yourself of items to sell. Plus in the beginning you could save some coin and work on getting customers and manufacture’s who are internet friendly.
I do like @dokosan coffee shop, record shop or any other small establishment willing to take on some of the brick and mortar rental fees.
But don’t boohoo the idea of being internet friendly cause you can create more sales with less overhead, and work on your brick and mortar with home installations later, or even at the same time. I think you already know what to do!
@nashvillehifi, I think your plan of becoming a national distributor is a good one. If feasible, imo it would be a good idea to route all sales through your dealers. Dealers don’t like to compete with their distributors, but they really appreciate a distributor "giving" them a sale.
My instinct is that a modest brick-and-mortar audio store is unlikely to thrive in a small town even if it’s an affluent town IF it is entirely dependent on local sales. I definitely sympathize with your dream of doing what you love.
Is there a way you could "fish from a bigger pond"? Is there a brand which is not available in the US at this time that you would really like to represent? I’m trying to think of a way you can have something unique to offer, so you can sell to upscale customers beyond your locality, but without having to compete with the internet. If you have something unique and desirable, you can theoretically generate sales well beyond your locality. Maybe something like Zingali (from Italy)?
Trump's proposed tariffs, is going to take a bite out of imported HiFi products. Domestic HiFi products like Schiit Audio, Rogue audio and DeVore Fidelity will benefit. Most of those made-in-the-USA companies are direct to consumer model. Used HiFi products might do well in your brick and mortar show room. But that seems to be having a supply issue as people seem to be holding on to their gear longer.
take a look at SkyLabs Audio discuss changes in the used HiFi market.
I bought a 20-something year old guy a BlueSound PowerNode streamer/amplifier and two used bookshelf speakers for his college graduation present. There is no way he can have a big HiFi in his downtown-apartment.
on the same wave as @audiokinesisI looked at 120+ speaker companies web sites (for 100s of hours but closer to 1000s) and more than half of them have no presence in the US. But it is worse than that because they do have a global distribution page, a link to a US company's web site (or in many cases broken link with domain for sale) who do not carry their products. Essentially most of them have an outdated network, with no representation in the US.
Several serious questions for you. 1) How are your finances and specifically your retirement assets? 2) A small shop like you are describing is what I call buying a job and, in this case, buying a marginal job at that. 3) Can you really open a shop and sell $10k-$15k of gear per week, at a minimum? From that, if you do it right, you might net $1k-$1.5k per week as your pre-tax income. That’s a solid business and yet, a lousy income.
You should search for a local, well paying job with 401k matching, health insurance, paid time off, and an income that will build up appropriate credits for your future social security benefits.
No offense intended but its ok to love hifi, you just cant let it blind you. You have around 20 years to prepare yourself financially for your retirement and you wont get it done, zero chance, from the business model described. The very fact that you had to scramble in your recent past should have been a wake up call that your chosen vocation was ill-advised financially. Think about it for a moment: you have been in the industry for 20 years and when a moment where the economy burped and life happened, your business was too fragile to be viable. And here you are again, thinking this time will be different? Seek out a new career, enjoy hifi as a user and set your self up up for financial success.
The only thing that scares me for you more than your stated proposition would be to read your post from the year 2045 when your financial future is 100% reliant on Social Security when youve paid in very little because your income record is meager. Small business owners quite often do everything in their power to drive their income as low as possible to mitigate income taxes, only to discover later that they didnt/couldnt save enough to set themselves up for a financially secure future.
Just because you like hifi doesnt mean it owes you a living. If making a solid income from the hifi industry is hard today, what on earth makes you believe it will be easier going forward? Think about it for a second, you were in the business for over two decades (and while it might not have been your fault given health, death, etc) you had the worst timing in the history of hifi to shut down your business for the several years where the hifi retail business was at its apex during the pandemic.
You’re going to do what you are going to do but if you don’t already have seven figures put away for your old age, you are behind and you need to be responsible and get a job so you can build a career.
not everyone should get a boring corporate job with possibly little to nothing to contribute to society. I know I am naive and a dreamer but when you retire, what would you rather have behind you, 20 years in an "office space" cubicle or 1000s of happy clients and lasting friendships that often come with this passion?
@grislybutterI said nothing about boring, corporate or cubicles. Its a choice to be responsible, to save, to ensure a secure future. To do otherwise is flat out financially irresponsible and dangerous.
Dreaming and hoping for a secure future? Knock yourself out. I have 300 co-workers and it isnt very hard to figure out who is setting aside for tomorrow and who isnt.
97% of the world doesn't have 2.34 million or whatever the number is for a "secure"
retirement as we are being fed that by wealth management "gurus" and "experts" and they seem to be a lot happier and less tense than Americans. By your logic, nobody should have a small business. Maybe it's not the small business idea that's wrong but the fact that private health care and everything else cost so much here.
My #1 priority is to take care of my sick mother, support my kids and not to put money away for retirement - it's a binary choice - I can't do both. That's the old model that worked for 2000+ years. I know it's not the model of the last 50 in the US but call me stupid, I know I am not "normal".
Sorry for the tangent @nashvillehifi my offer still stands to run the stats on the hifi buying potential of the area.
@nashvillehifi I was certainly acquainted with your business. You definitely have many years of experience. The key is clientele. So many folks opening up an audio store for the first time have no client base, and they believe they will just show up (Field of Dreams scenario). This is not your first rodeo by any stretch! The question I would ask is, can you recapture your clientele and have a sustaining client base? My best wishes for you, whatever decision you make.
I’m in Nashville a lot and would love to see another high-end store in that area. With that said, it’s obviously a big risk and you better have substantial financial reserves to get through the startup cost and the first year or two. I don’t think a store would make it selling low or mid stuff. Too much competition from the Internet, Best Buy, etc. As others have said, there is considerable competition at the high end in Nashville.
I wonder if there might be an opportunity to get some traction as a consultant for people looking to put together high-end systems. Nashville is exploding and full of very affluent people. I doubt if this could start as a full-time job but maybe a side hustle and maybe you could get access to sell a little equipment along the way without having the enormous expense of a brick and mortar store with a full set of inventory. Even if it didn’t take off as you would want, you would have very little investment. You are obviously knowledgeable, and maybe there are people willing to pay for that
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