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  3. 1231607049

Supporting Local Audio Stores are we?

I know, money talks, bullshi* walks...
But having owned an audio store for about a dozen years, I know how tough it is to 'make a living' for a mom and pop store, without some sugar daddy/momma in the background funding the enterprize.
So, I am wondering if the nice folks of Audiogon support local businesses?
As I stated, "Money Talks" and I get it, we all want the best 'value' for our money. The question is...when does the price versus local support begin/end. When does the follow up and or service/set up outweigh the raw savings?
To be clear, I am not talking fantastic discounts, but a few percentage points off retail. I remember a painful transaction that I had once, during which a customer had taken home a particular CD player two weekends running, only to purchase elsewhere because he 'saved' $53.00 (on a $500. item). OUCH!
I contended that without the long term audition, he had nothing on which to base his purchase? How does everyone else see this?
Right now, its obviously a tough financial climate out there, but looking to more normal times, I am wondering how many of the readers/writers of Audiogon would forego price for service/set up? OK, forget buying great used pieces for fractions of original retail, everyone must probably assume that that's good for everyone, including the dealers, as this frees up customers who are now, 'back in the hunt'.

It will be interesting to hear back, it's been some time since the Brick and Mortar (at least for me) question was aired out.

Best,
Larry
lrsky

Showing 4 responses by macdadtexas

macdadtexas
1,794 posts
 
I live in a High End Audio Ghost town (Houston) with only 2 (1 really) high end store. They don't discount at all, are very nice, but service a very small clientel. I do a try to buy vinyl from only the local guys unless they just can't get it.

But it's tough to compete with the internet. I think the high end manufacturers that don't sell over the web for reasons of principal are stuck in the previous century. It's a small world, with great price discovery and unless you have a truly unique product or great following, both of which can disappear instantly, you are just costing yourself sales. The mark up on a lot of the high end audio gear is absolutely shocking.
macdadtexas
1,794 posts
 
I am a definite "free market" guy, and you should charge whatever you can get, (whatever people will pay), but after talking to some of the manufacturers today at CES, and seeing the pricing lists (msrp and dealer cost), I don't see how many of these companies will continue. An $8000 preamp (MSRP) with a $4600 dealer cost that they cannot discount?? How do you keep that on the shelf? Or, they cheat and discount, which then the manufacturer may pull the product line.

It's not that the markup is so outrageous, it's that the manufacturer cannot discount it then. I would buy a lot more new gear if the $4500 amp, with a dealer cost of $2600 could be discounted to a more realistic $3000 by the dealer. I think more units would move then as well.

It seems all hubris to me.
macdadtexas
1,794 posts
 
I would take any retail business that would net me 15%, if there was a market for it. If you can't keep the lights on with that, there is no market.
macdadtexas
1,794 posts
 
You have answered your own question, it is not a sustainable business model with a dealer network to support. It's a specialized market that needs to evolve, or it will go away.
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