What do audio shops need to do to survive ?

What Twl is saying is accurate. However, there is another way; the dealer must find products that represent a level of performance mass produced products can not compete with. The international market is hungry for performance. The problem: very few audio companies offer that level of advanced technology/performance. To achieve this, when resources are limited, a financial trade off must be made between monies spent on advertising or research. This means the product may be great but very few are going to know about it. The dealer must develop marketing skills to advance product recognition.

Corona, you hit upon a good point -- I know of quite a few small audiophile companies that do not and will not budget adequate funds to market their products. As you say, the products may be great, but if no one knows about them they won't buy them. Small manufacturers tend to think that minimal advertising and word of mouth will get them by but unfortunately it doesn't usually happen. On the other side of the coin, advertising is VERY EXPENSIVE, so it's almost a catch-22. And it is those companies who've bitten the bullet and swung for the major advertising -- the big-name companies -- who are raising high-end prices through the roof and you almost can't blame them. Then again, I don't know many folks who pay actual retail for anything. It makes me wonder how any new gear gets sold in the first place.

When I first got into this hobby, store owners would really take care of the customer. THey would work on building a lasting relationship. Then we got into the 90's and they couldn't get product quick enough. I used to stop by my favorite audio stores once or twice a week with coffee and donuts, pizza, or chinese food and just shot the sh--. Then the 90's boom came along and I started getting blown off and they did not want me in the store unless I was buying something. Now that things are getting lean they don't remember how to treat a customer correctly. On top of that they expect you to pay full retail, tax, and freight. Yeah, right, do you have any bridges for sale while I'm here. The last item I bought, a surround sound processor, I had to beat the dealer over the head with a brick to get him to sale it to me. And forget about the local tweeter. The last time I was in there I was the only customer and there were four salespersons. So, How long did I have to wait at the front desk until someone came over to help me? You guess correctly: 20 minutes. Then, they didn't have the product I wished to purchase in stock and said it would take 4-6 weeks to get one. I walked out and ordered it off the net; had it in two days.

Now, here's a product that really gouges the customer. It's a picture frame that goes around a 42" plasma monitor that hides the monitor. It consists of a piece of cheesy artwork that is raised and lowered by an IR controlled motor. It uses the same motor as in my Hunter-Dougles motorized blackout shades that I paid under $400.00 for. A stock russound IR control block is used. The frame consists of some powder coated angle iron and a faux mohogany stained pine frame. I think the total cost of parts has to be between $300-$500 including the "artwork". So, how much do you think these thing cost? $1500.00? $2000.00? How about $7900.00!!!!! That's right, you did not read it wrong. $7900.00!!!! That's more than most 42" plasmas cost! Dealer cost is a little more than $3000.00. I asked the dealer what he was charging for install and he said $500.00. It took him and me about 20 minutes to install the demo unit in his showroom. Now, granted, this is a niche product, but I really think they are taking advantage of the customer. This is where someone chimes in with "It's worth what the market will pay....". Well, he's been a dealer of this product for about 8 months now. Can you guess how many he's sold? 2? 5? 17? That's right, 0!!!!! I told him that he was never going to be able to sell it at that price and he told me I didn't know anything about sales or his customers. Hello, am I not one of your customers? Now here's a prediction: he'll be listing it right here in a few months for a lot less then $7900.00! This is the same dealer that tried to convince me that a Denon 2803 receiver is better than an Anthem AVM20.

B&W has a good idea with the $300 600's and NAD at the front of the store. A complete setup for under $1,000. Which is still a lot for most people.
But the idea is a good one. Start with a good bang for the buck stereo. Get people into hi-end stereo for as cheap as possible. Maybe people will want to upgrade in the future building more business and hopefully a lasting relationship with the dealer.
TWL did you see this single driver site?
single driver speakers

Prpixel's story is specific to him but nevertheless it's very generic to the high end audio scene. This is what has happened to too many brick and mortar shops. The greed and arrogance is there in spades without an appropriate economy to support it and it's down right insulting to be thought of as that ignorant. His post epitomizes what is wrong with high end audio. There are simply too many retailers that feel entitled. Apologies to the good ones.