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Starting my showroom again

 

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?

 

nashvillehifi

Showing 2 responses by lonemountain

lonemountain
472 posts
 

@nashvillehifi 

I am active in the business right now (in hi fi and in pro via high end recording gear) .  The business has completely changed from when you were running a store.  One of the issues is that most of the lower end brands (90%+ made in China) will make deal with a customer (a store) who can buy more-making small operations vulnerable to your competitor buying the same thing for much less than you.  It is not uncommon that quantity discounts kill small retailers all the time in almost every business.  Finding something unique to sell is the game.  

Small town means you have to "pull from Nashville" because that's where the people with money are.  With the recent Nashville aversion to bad traffic, why would someone invest 60 minutes x 2 to come see you?  You need to answer the question first. 

 

Becoming a distributor does not work either as you need relationships that are long and deep all over the country to survive against behemoths fueled by almost unlimited money that own major brands most people don't even know are really Chinese companies now.  Due to their unique conditions, they can almost sell at manufacturing cost just to keep a factory operating.  

Recording gear is just a specialized as high end hi fi, plus there are 3 or 4 long term participants in Nashville ; Vintage King has a strong presence there as does GC Pro.  Sweetwater is one day to ship in and talk about buying in quantity- you cannot compete head to head with them.  So I don't believe you can make that work either due to the intense competition.

My suggestion is go to work for one of those other stores or manufacturers seeking a sales rep and learn where the industry is at.  Learn what is and isn't working before you spend your own money.

Brad 

lonemountain
472 posts
 

The online dealer thing isnt going to offer any opportunity for you (IMHO).  I think that ship has sailed and the major web stores are already doing a lot of business for the major manufacturers.   A new webstore is not different.  Remember, more stores is not better- to a manufacturer it just means more work-especially since without differentiation you are splitting up the business they already have.  That isnt helpful.

Manufacturers want people who can ADD to the party, who bring something new and unique, bring their own customers, reach people they cannot reach any other way than through you. Sell them on your unique ideas- your ideas are what make you and your new store special.  Sell them on how you will bring something new to the table no one else is offering PLUS you have the wherewithall to endure, stick around, not go away in a year like most do.   If you can sell them on these things then you have a decent chance you will get some attention from manufacturers.  

There are multiple brands that have no representation in Nashville so what manufacturers never get presented there?  That's easy thing to figure out. If a factory isnt well represented in a market, they will usually listen if you have an idea that seems unique and looks like you know what you are doing (plus can afford to buy some inventory).   Go to AXPONA and meet the people that run these brands in the USA.  Make your case!    

Then the only little detial after that is can you put together a compelling  story/product mix/new idea to get a customer to drive 30 minutes south to come see you.  

Good luck.

Brad

 

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