One big reason why brick and mortar high end audio dealers struggle.


I live in a major metropolitan area with several close by high end stores.  I never go in any of them.  A dealer just opened a new location 5 minutes from my house.  Major dealer with Magico, Constellation, McIntosh and many other serious brands.  I went by a couple weeks ago mid day on a Friday.  Door locked, nobody there.  I call today to make sure they are actually open for business.  Guy answers the phone and says that they were out on an install when I can by and that they are short staffed.  No problem, I understand.  But from that point on the guy takes a subtle but clearly defensive and pissy tone.  He states that they recommend setting up an appointment for customers to view their products.  Sure, and I recommend never going there.  Off my list.  Back to buying online.  Here's the issue.  So many of these high end dealers are only after the wealthy guy that comes in, spends less than an hour there and orders a complete home theater or 2 channel system and writes a check for $50k or more on the spot.  That's there customer base.  I get that it can be annoying to allow a bunch of lookers to come in and waste their time and not buy anything, but isn't it good for business to have more customer traffic?  If someone comes in, spends an hour there, listens to some amazing gear and then buys nothing, doesn't he tell his friends and family and coworkers about his great experience?  Isn't this word of mouth valuable?  These brick and mortar dealers almost universally are unwelcoming and unfriendly to people that want to come in and just look and listen and not buy.  Sorry, but the vast majority of potential customers are not going to spend 20 minutes by private appointment to order their new $100k system.  Why not encourage people to come and spend time with zero pressure to purchase.  I have purchased dozens of high end speakers and electronics over the many years I have enjoyed this hobby.  I might well buy from a dealer if they were actually nice, friendly, and encouraged hanging out and getting to know their gear.  But they don't.  I would never go to a high end store that required an appointment.  Because this creates a huge pressure situation for you to purchase that day.  I'm not ready to purchase on my first visit.  And neither are thousands of other potential customers.  If they can make a good living just catering to the wealthy one time buyers, then, ok, good for them.  Doesn't seem like they can though since so many have gone under.  Maybe it's time to try a different approach?  Step one, no commission sales people.  Step two, welcome people to listen and not buy anything.  Encourage it.  This will create positive word of mouth and significantly increase customer traffic and ultimately create more paying customers it would seem.  I don't get it.  Rant over. Please don't respond that you have an amazing dealer.  I'm sure they exist but they are the exception.  What I am describing is the typical customer experience.
jaxwired

I can tell you why some dealer succeed while others struggle. Dealers who are successful number one work hard, very hard. They visit their customers homes and set everything up. They have a consistent approach where the speakers they sell, their components and cables and accessories all work well together to create synergy. And again, they go to peoples houses and set it all up with the knowledge of how to deliver great sound. They also focus on established lines *people want to buy." They do not chase the flavor of the month. They are relationship focused, both with their customers and their vendors. They have demo items to loan out and demonstrate in their stores. They often work late nights *at their customers houses* because successful people work during the day, they avail themselves to accommodate their schedules.

Dealers who are not successful tend to be lazy from their customers perspective. They don’t go to peoples houses to set everything up, instead they glad hand their customers with a product and a hand shake, no in home set up, and often times no chance to audition before purchase unless in their store that often times does not sound all that great. They waste time with non serious customers or they cannot tell the difference between a real audiophile and a poser. In short they understand neither high end audio or business so they pick the wrong lines, can’t get good sound because they are clueless, they spend too much of their profit and so, have thin demo inventory and they don't know what they are doing.

Yours in music,

Ted Denney III Lead Designer/CEO Synergistic Research Inc.

 

@ted_denney 

+1 And an interesting view from the manufacturing end of the industry.

Somehow, B&M retailers must rediscover the "value added" that used to come with shopping with a specialty store. It may actually cost too much money off the bottom line for many small shops to stay operating. They must begin by offering everything the online dealer offers (price, loaners, shipping) and add-on: service of all kinds.