What do audio shops need to do to survive ?

Normally, brick and mortar specialty stores survive by providing services that can't be matched on the Internet or by mail order suppliers. Their overhead is higher, so their prices need to be a bit higher for them to stay in business.

What they normally offer the customer is a venue where they can see and listen to different models within their budget; and a place to return faulty or defective equipment and get it repaired or replaced without the hassles of shipping.

But in today's market I think they need a new gimmick or enticement to help them stay afloat. For example, maybe they could institute a "trade-up" policy, where they will give you something like 80 percent of your purchase price up to 2 years from the date of the purchase toward the purchase of a similar component, provided that component is at least 1.5x the price of the original component.

That is just an off-the-cuff example of a new service that could be enticing to prospective buyers and I'm sure there could be other things that could be done to attract business, such as holding manufacturer seminars and volunteering to host local audio club meetings.

The bottom line is that brick and mortar establishments can't just sit in their shops and wait for business to come to them. They have to adopt a proactive attitude and use their creativity to go out and grab the attention of prospective buyers.

Also, it is beyond my comprehension how certain retailers can afford to be snobbish toward any customer in this type of economic climate. I would think they would need to be as cordial and helpful as humanly possible...

Another thing I thought of is that brick and mortar shops can take advantage of the Internet as well. They should try to set up and maintain a good interactive web presence and maybe employ a clerk who's sole responsibility is to maintain the website, process orders, and field inquiries from the Internet. They could also list and events calendar and special Internet coupons that could be printed out by users and redeemed at the store for additional savings on selected merchandise...

I think retailers who don't take advantage of the Internet's potential are doing themselves a big disservice.

Corona, you hit upon a good point -- I know of quite a few small audiophile companies that do not and will not budget adequate funds to market their products. As you say, the products may be great, but if no one knows about them they won't buy them. Small manufacturers tend to think that minimal advertising and word of mouth will get them by but unfortunately it doesn't usually happen. On the other side of the coin, advertising is VERY EXPENSIVE, so it's almost a catch-22. And it is those companies who've bitten the bullet and swung for the major advertising -- the big-name companies -- who are raising high-end prices through the roof and you almost can't blame them. Then again, I don't know many folks who pay actual retail for anything. It makes me wonder how any new gear gets sold in the first place.