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

Showing 6 responses by ghdprentice

I understand your frustration. I remember back in the 80’s and 90’s I used to go to high-end stores to audition systems way out of my price range. I hoped for no other customers. The sales people would quickly figure out I couldn’t afford the stuff and ignore me. But I would get to listen to great equipment. Typically they would have some young minimum wage kid to take care of me… so the really knowledgeable guys were free for high end customers. Probability of sale low.

Fast forward to the 2000’s. I am a busy executive flying all over the world with no time, but with money. So, I know I will be in Delaware on Friday. I call up the high end shop… tell them what I have and sound I like and make an appointment. They set the main room with all the appropriate equipment. So, I walk in, have the whole place to myself. Probability of sale… very high.

I now have a dealer that I have had a close relationship with for 20 years. He brings equipment to my house for me to try. My dealer will occasionally spend an afternoon at my house listening to music. Recently I was auditioning a $20K amp, he brought over a $17K DAC that I didn’t ask for or want… he just said, “trust me, you want to hear this”… About a week later out of respect for him I tried it. 30 seconds later I sent him a message and said, “Sold, order one for me”. 

So, who is a business owner going to cater to? Many people that have money have no time. Today it is hard to find people to take low paying jobs. So, the business guy does what he has to to remain in business.





The internet has given tremendous opportunity to younger and less well healed audiophiles. If you have more time and learn to research well you can save a ton of money and have orders of more choices than from a dealer. Like MC says there is a limit to auditioning. I am glad I did what I did when I was younger

BTW, my dealer is doing pretty well… after building his business for twenty plus years.. starting out of his house. But he is not rich by a long shot. These guys can make a good living… the few that do well. But it is not a way to get rich, period. If he had put his effort into being a general contractor, or developer… he would have more money (remember for the first ten years he made just enough to survive). My guy sells on the internet, and lots of low end stuff (he has two employees that make good livings). It takes a lot of skills and work to run a business like this. He programs his own web presence and does some programming on the side, “just in case”.
I have a good friend that has a problem making decisions. He will go into a high end store and spend an hour or two asking questions… he goes to shows and talks his way through the show and rooms. He somewhat proudly proclaims he can waste an enormous amount of salesman’s time. He is a bit autistic, it is not malicious… but it is a waste of salespeople’s time… and his own. They usually figure out he is not buying anything in about 45 minutes or so and go off to help someone else. In the long run, the joke is actually on my friend… he is 70 and has 1/2 a great system… that sounds terrible and has wasted most of his life not making decisions or making bad ones, not accomplishing the things he wanted. But sales people have to put up with people wasting their time.
Long ago margins in high end audio were high. Also, the purchase cycle was long. Cultivating a customer now would net you sales in a few years. It was how you built a good business. Inspire a person today and they will buy some day when they have money.

Today, high end dealers must cull out people that will listen at their shop and buy on the internet. It is honestly pretty disingenuous to do this, they have a business to run. People that can afford to buy want, what a dealer can provide a stressless purchasing experience. When I received a unit which had a meter that didn’t work, my dealer came over to my house, gave me his demo, ordered a new one, delivered and installed it, without me lifting a finger. For over $20K… I don’t care if I save a couple grand… I don’t want the hassle… I am retired.. I want to enjoy life… not wrestle 150 lb amps into boxes and call shipping companies and not have a working system for weeks. So, I am completely on the side of the dealer in getting disingenuous buyers out of the store.

I am the kind of customer that high end audio dealers want. They are the kind of guys I want… someone that can intelligently discuss and and help me choose the very best equipment for my tastes and makes sure there is never a glitch in the process. Dealers that get that… will survive and thrive.
Thinking about this some more, I realize. When ever I go into a high end store, typically I will find the most knowledgeable guy (usually by asking to see the manager). I then explain my intentions. I explain the system I have and any intentions… like, I am in the browsing mode, with a long-termed intent of replacing something, or I wanted to understand what they carry, or what ever. This way I can assess their knowledge / strengths and they know what to expect from me. A courteous customer tends to illicit a good relation from a sales person. I suppose this is why I have had good luck and long relationships with high end audio dealers.