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
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?
"Once you establish yourself in an audio salon they will give you 20% without asking"

I have been into audio for 30 years and not one time did anyone give me 20% off without asking. Sure I have gotten discounts before but I had to play hardball with the dealers and it's not a lot of fun.
Elizabeth made a good point. With rents continually going up it's really hard to operate any kind of retail business nowadays. I know a couple of dealers in the Los Angeles area that are doing well. They both own the property and are always expanding their lines because there not laying out huge sums of money for rent.
The rich and super-rich already have 3-4 systems, if they even care about music,high-end audio prices are beyond 90 % of all american budgets, except for a few nuts like me.
Who needs them? High-end audio stores can only survive IF, their customers are CONSTANTLY buying and selling.

Other than that, the customer base is not large enough. We on this site, might be kool-aid drinkers, but the general public is not.

And lastly, the market place is always right. If you cannot survive in it, change your ways. Or change something!!

Cheers