Another audio dealer closes his shop


After being in business for 35 years audio and video dealer GNP of Pasadena, California closes it's doors. The owner told me he has to sell 30k a month in goods just to break even. He says it's not worth being in business just to break even.
taters
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Phaelon,

"My apologies to the exceptions but, in general, I have so little sympathy for audio dealers that I just couldn’t care less. In my experience, this industry attracts too many hustlers who see a potential for huge unearned profits, and have categorized audiophiles as sheep begging to be sheered.

Another problem is that there is no qualification process, other than the market place, to determine who can operate an audio store. With manufactures and distributors competing for locations where prospective customers can audition their products, it’s too easy for incompetence to find its way into the audio chain. Many dealers like to say that they’re in the business of selling music, not components, but too many don’t know how. They’ll sell you a 30k analog rig but cant set it up for optimal playback. Of course they get trained for set-up, but that’s no guarantee that they’ll make the effort or have the talent."

I have to disagree with your post somewhat. It may be true in some cases, but its not always that way. As far as how the individual stores are run, its a mixed bag. Some, like you say, are just profit oriented and don't care. There are good ones, though, and if you go into the store and get to know them, a little, their easy to pick out.

"Another problem is that there is no qualification process, other than the market place, to determine who can operate an audio store."

On that quote, in particular, you are way off. If you are trying to get a dealership for a well established brand of high end audio equipment, they put you through hell. You don't just call these companies up offer them 25k, 50k or whatever as an initial order to get you going. You have to sign a very strict contract that will be closely enforced, show credit, have insurance, have an existing location that they can fly out and come see, trade references that include other high end brands that you currently sell and will use to support their brand and many other things that I can go on about.

The only reason I bring all of this up is that there is a lot more that goes in to opening up an audio store than most people think. To set a new store up today, with established brands, you are easily looking at over a million dollar investment; just for a small store.

Going back to your original point, I agree in that if they don't take care of their customers, they deserve to go out.
"consumers are realizing that they can configure a stereo system without the advice of a dealer”

To the extent that that’s true, it's because too many dealers offer the minimum in set-up help. I’m not talking about six figure systems, I’m talking about, first attempt, sub $5k systems that if well chosen and properly set up, can give a musically satisfying experience that will encourage further exploration.

We shouldn’t forget that there are music lovers who don’t participate on forums. Mrtennis, I am absolutely confident that if you were to visit the home of an average audio retail outlet customer, you would be appalled at what you heard.
We need bricks and mortar stores , where else can you hear and bring home gear before you purchase it ? Audio shows are only in a few cities , there's never been a show in mine .
Once you establish your self at an audio salon you usually get 20% off without even asking . If there's a problem you just take it back , they always had a loaner for me .
Zd542,
"It may be true in some cases, but its not always that way. As far as how the individual stores are run, its a mixed bag."

The fact that I offered my apologies to the exceptions means that I know that it’s not always true.

"On that quote, in particular, you are way off. If you are trying to get a dealership for a well established brand of high end audio equipment, they put you through hell. You don't just call these companies up offer them 25k, 50k or whatever as an initial order to get you going. You have to sign a very strict contract that will be closely enforced, show credit, have insurance, have an existing location that they can fly out and come see, trade references that include other high end brands that you currently sell and will use to support their brand and many other things that I can go on about.”

I’m not way off. Everything that you mentioned concerns the manufacturer/seller relationship. Where’s the part about satisfying the customer?