Supporting Local Audio Stores are we?

I believe we are seeing the end of an era. Setting aside the used market issue, and focusing on new sales, I think there will be a time soon when only the very high end dealers in large markets will survive by selling to folks with more money than time. In the smaller markets, most people will either purchase from big boxes, or direct through internet sales. This is a phenomenon not exclusive to audio, but that is also occuring in many retail markets as buyers trade price for service. I think this is also related to the wealth of easy information on the internet, compared to the days when a main source of information was the retail dealer. Now, you can get on-line and see detailed images of what you are looking for, learn about it, read feedback from other users, and compare prices all from the comfort of your easy chair. Many savvy direct sellers offer free auditions for everything from cables to components and speakers. Then you can purchase directly from the manufacturer at a competitive price, still get support and a warranty, and have it shipped directly to your home. Hard for brick and mortar to beat that.

Guys (girls),
I had resisted being on Audiogon for quite a while because it seemed that no matter what the subject there was always someone willing to be a jerk, intentionally starting a fight. Really, it was never ending trash talking, more like an 8th grade gym class.
Now, as of my last couple of interchanges, the whole group seems committed to discussing and showing thier points in an adult and civilized tone; what a breath fresh air.
I don't know how A'gon changed the discussion culture, or if you're all just a higher level group of people that I've met in the past, but this, to me is what Audiogon intended with their forum part of their site.

Thanks for GREAT and INTELLIGENT point, counterpoint...lets keep it going, it's great to get perspectives from everyone.

Best,
Larry

My recent experience in selling off a bunch of equipment has taught me that people buy on price, price, and price. There isn't all that much more to it than that. No matter how low that price is or how much of an opportunity/bargain it is, the lion's share of people will will still try to wiggle as much of a discount out as possible.

Of course, I have racked up a ton of stories during this time that will hopefully help me make heads or tails of things going forward.

It must be incredibly difficult operating a high-end audio store these days. The folks that do certainly have both my empathy and admiration. That being said, it's incredibly easy to see why the less flexible ones are really skating on thin ice - a depressed market for high-end audio componentry combined with intractability is quite likely a recipe for the failure of one's business.

Back in the day 1976 to 1983 had a high end shop. Carried NAD as entry level,Luxman as mid - level and Threshold as the high end. Turntables were Linn, Luxman, Micro Seiki. Cassette decks only Nakamichi. Speakers were Magnepan,DCM,Polk and Allison. In those days there were not many accessories such as cables and power cords.

Carried roughly $125K to $140K in inventory and had monthly sales avg of 60K. Always took trade-ins of like equipment to be applied to new gear. It did not take long to realize that the used sales were quite a viable part of the business. Used sales added very nicely to the bottom line.

Service was our forte. No matter what you purchased it was always delivered and set up for the customer and the customer was guided through its operating parameters of what to do, but more important what not to do.

The store itself was set up basically like someones living room, with couchs and chairs, tables, drapes, you get the idea. Always had refreshments and deli trays on hand for the customers. In other words a home type environment, where customers could kick back relax listen to music and the gear that was on display.

Never any pressure to buy,or to ignore the customer.

One of the important things to remember about this time, is that the manufacturers had protected territories for their dealers. Say I wanted to add Audio Research to the inventory. Audio Research would not sell to me as they already had a dealer within that marketing area. And most of the manufacturers had the same or similiar arrangements.

To anyone that has been in this hobby/business realizes that in two channel audio, this is an ever evolving hobby, with solid repeat sales. Home Theater on the other hand does not work in the same vein. It is for the most part one big sale and thats it. Out the door and gone.

Back then HT was not even a blimp on the radar as was the internet.

But business moves forward and to remain viable one has to embrace all the possibilities to enhance the bottom line.

Another key to our success was a striking employee. Her name was Candace. She started out as a customer and I ended up hiring her. She had that personality that men trusted and ,here is the good part was able to converse with wifes and girl friends why their husbands and boyfriends were in this hobby and why it was non-threatening to their relationship. One of the best hires I ever did.

Yes the business ebvironment has changed, but solid business models have a far greater chance of success, than to think of all the ways it can fail.