Retail Buying - Reality Check


Like all of you at some point in time, I caught the Audio and HT bug. I started out at the usual places - Hi Fi Buys, Best Buys, etc. and moved on to the niche, locally owned hi end audio and HT boutiques. There I met generally more knowledgeable salesmen (no women yet). I also started doing my homework out on the web and came upon great sites like Audiogon and AVS Forum to name a few.

Your knowledge and experience has been invaluable to me. Unfettered by the product lines you have to sell, you provide a far more level playing field of unbiased opinion.

Here's my dilemma: I am a small business owner myself, and I value local market presence and customer relations. I'm even willing to pay a small premium for this intangible. However, when the quotes came back from 3 different retailers in Atlanta ($65 -80k), they were all for MSRP plus tax plus design install and misc. such as clips and straps ($250-$500 worth!)

Now most of the hi end equipment today has "burn in" periods of several to hundreds of hours before peak operating performance is obtained. So, buying new at full MSRP also meant getting inferior performance for the necessary burn times. So no big benefit (except some warranties) to buy new.

By purchasing from sellers on sites like Audiogon, and purchasing nearly new or sometimes new products, I have saved $16,000 plus $1,000 in sales taxes on approximately $50,000 of my quoted MSRP prices. I'm not done yet. I also have the flexibility of buying the exact product line I want, not just what my store has to offer. There is great pressure in the retail setting to go "one stop shopping" at your store of choice.

I understand these stores need to make a profit. However, 50% markups on items that they don't keep in stock and have to special order, seems out of line to me.

Caveat emptor is certainly a key consideration in on-line purchasing, but to date, through careful checking of prior seller transactions, prudent payment techniques and telephone conversations with the seller to allow me to make some kind of character call, I have had nothing but outstanding, as promised transactions.

I hired a HT acoustical designer and a certified installer and I couldn't be happier, except for one thing. I still feel a little guilty about not buying from the guy with the storefront who spent time with me. I just wish they'd recognize where they do and don't add value and charge accordingly.

Anyway thanks guys, for the great education and advice you've provided me.

What say you?
rogocop

Showing 1 response by foreverhifi

As someone who's been around hi-end retail sales for a good portion of my life, and who knows exactly what it takes to build very good to WORLD CLASS AUDIO/VIDEO SYSTEMS and environments, I can easily say that the way "Rogocop" has conducted his buying desissions has landed him AN INFERIOR AUDIO/VISUAL EXPERIENCE!!!!...as it does 99.999+ percent of the internet buying public! I don't care if someone reads every article and review ever printed, and takes every audio salesmans advice and "sucks his brain" for knowledge! It still won't help you end up with a quality experience!... NEVER HAS, NEVER WILL! How can I say that, you may ask? Even without knowing what he ended up with, who he delt with, and what he paid for his gear? ...SIMPLE!!!!... because, HE'S MISSING OUT HAVING SOMEONE WHO KNOWS WHAT HE'S DOING (LIKELY LIGHT YEARS BEYOND WHAT THE AUDIO NEWBIE CAN DO ON HIS OWN) PUT THE SYSTEM TOGETHER FOR HIM!!!
One of the major things I've learned from selling audio gear to people over the years is that YOU CANNOT REPLACE EXTENSIVE TIED AND TRUE KNOWLEDGE, EXPERIENCE, SKILL, DEDICATION, DESIRE, AND SERVICE!!! Yes, indeed buying things over the net takes the "people" out of sales! The end result is that any potential "team effort" goes away!
I've personally assembled over 1000 systems in my 20 years around this business. And I know without a shadow of a doubt, that the buying public is not getting what they think they are bargaining for!!
So, I ask you everyone here..."do you think it's a better deal by saving money shopping for gear on line?" "Is Rogocop getting a better deal by saving a bunch of money with on-line purchases?" If you ask me, I don't think so. Infact, I'm EXTREMELY CONFIDENT that, iF I was a retail salesman that Rogocop had purchased the same equipment from, and he paid me more than double what full retail price was, and he let me install the entire system, design the system out, place the gear, and basically make it all come together for him(with compromises even), that he would end up with EASILY 200% BETTER RESULTS AND EXPERIENCE!!...giving him a better quality of life experience day in and day out with his gear!!! ..In escense, a quality of life improvment far beyond what he could get "without the relationship"!!!!
So, for me, since service is where it's at, I wouldn't sweat the "net" any if I did retail!!! Because people REALLY AREN'T GETTING BETTER VALUE BECAUSE THERE'S MORE MONEY IN THE POCKET INNITIALLY! Infact, if these buyers, like "Rogocop" ever catch wind of what's the potential of an AV system to be had in a room, I think he might end up respending all over again!!!..and again...and again, if he wants a world class AV system some day, and insists on doing it the way he's chosen. My two cents....