'In Home Dealers' are the future?


Seems there is growing trend for various distributors to be doing business with 'in home dealers'. These appear to be audio hobbyist that are selling factory product from their homes, at 20 to 25 percent off list. Certainly not fair to the dealer network, but it seems to move additional product, especially at these soft purchasing times. Your opinion?
buconero117

Showing 2 responses by stanwal

I was an "in home" dealer in Knoxville, Tenn. for 20 years, 74-94. I didn't hurt any storefronts because none of them were interested in selling high end. I had most of the high end brands current during that period; I didn't survive by discounting but by giving good service. I would give a better price on a complete system or overvalue trade ins but all the stores I know do that. All the brands I carry have a 40% off dealer price , I have seen some "new in box" items cheaper than my cost so the question is how do home dealers survive in this economy? I am in Louisville , Ky. where there are Home Theater dealers but no audio ones save me. I get inquires about selling outside the local area but don't do it on new equipment. I invite anyone who thinks it is a good way to make money to try it. If you want to demo equipment at a serious, not top end, level be prepared to invest , say, $30,000 in stock. this is probably very low. I have spent on the order of $12,000 on new stock and I already had an inventory that would run 3 or 4 times that to purchase now. If you think you can operate on a 15% mark up let me know and I'll close up and buy from you. If you are not interested in meeting other audiophiles and the challenge of setting up systems that reflect the taste of your customers forget about it.
So what we are likely to see in future is pure mail order. To get the lines I carry I gave assurances that I would not sell on the internet. At least some of the companies want to preserve a dealer network. I pay 60% + shipping. If I give a 40% discount and home trial I am losing money up front and donating my time and effort. If 40% off becomes the standard there will be no local dealers of any type.