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Supporting Local Audio Stores are we?

I know, money talks, bullshi* walks...
But having owned an audio store for about a dozen years, I know how tough it is to 'make a living' for a mom and pop store, without some sugar daddy/momma in the background funding the enterprize.
So, I am wondering if the nice folks of Audiogon support local businesses?
As I stated, "Money Talks" and I get it, we all want the best 'value' for our money. The question is...when does the price versus local support begin/end. When does the follow up and or service/set up outweigh the raw savings?
To be clear, I am not talking fantastic discounts, but a few percentage points off retail. I remember a painful transaction that I had once, during which a customer had taken home a particular CD player two weekends running, only to purchase elsewhere because he 'saved' $53.00 (on a $500. item). OUCH!
I contended that without the long term audition, he had nothing on which to base his purchase? How does everyone else see this?
Right now, its obviously a tough financial climate out there, but looking to more normal times, I am wondering how many of the readers/writers of Audiogon would forego price for service/set up? OK, forget buying great used pieces for fractions of original retail, everyone must probably assume that that's good for everyone, including the dealers, as this frees up customers who are now, 'back in the hunt'.

It will be interesting to hear back, it's been some time since the Brick and Mortar (at least for me) question was aired out.

Best,
Larry
lrsky
catahula_bill
24 posts
 
It's getting tough to buy new because dealers carry limited stock. I have a dealer in my area that gives me good deals, lets me audition, hell he has shipped things to my house. when he has something i really like I try to buy.I try to use the used market to show me the way. I think once i'm more educated and want new items that are several thousand dollars, the used market will be very attractive, and might I say, I'm seeing very good deals these days in the used not new market.
lrsky OP
1,118 posts
 
"The mark up on a lot of high end audio gear is absolutely shocking."

Just looking for clarification Macdadtexas...I don't know what most people consider 'shocking' profits.
Are you of the impression that audio dealers making high margins or is it the audio manufacturers themselves who make 'shocking' margins on products. (You may have meant low, shocking can qo either way of course). I am guessing high, but clarification would be good, I think.

Great comments, good to see you alive and well Grant.

Larry
jmcgrogan2's avatar
jmcgrogan2
6,346 posts
 
What's a Local Audio Store??? Seriously though, the big one by me went under a couple of years ago, and no, I was not supporting it. There are a couple of smaller stores by me now, and I'll buy a couple of nick-nacks here and there, but no major gear deals, the prices are just too high.

I do make an effort to buy American gear though, my electronics, turntable, and cables/cords are American made, my speakers Canadian and my CDP is Japanese. I suppose I could support American dealers if I chose to buy Chinese gear, but I can't afford American dealers AND American manufacturers.

Cheers,
John
macdadtexas
1,794 posts
 
I am a definite "free market" guy, and you should charge whatever you can get, (whatever people will pay), but after talking to some of the manufacturers today at CES, and seeing the pricing lists (msrp and dealer cost), I don't see how many of these companies will continue. An $8000 preamp (MSRP) with a $4600 dealer cost that they cannot discount?? How do you keep that on the shelf? Or, they cheat and discount, which then the manufacturer may pull the product line.

It's not that the markup is so outrageous, it's that the manufacturer cannot discount it then. I would buy a lot more new gear if the $4500 amp, with a dealer cost of $2600 could be discounted to a more realistic $3000 by the dealer. I think more units would move then as well.

It seems all hubris to me.
luvwine
44 posts
 
Macdad,

I would quibble with your analysis as I think $3,000 would be way cheap if dealer cost is $2600. Even $3500 would be a fine price and less profit than I expect they would need to keep the lights on. Still, I don't disagree with the "price fixing" issue in that I think if a store has paid the dealer cost, then they ought to be able to discount as they see fit. There are problems with this too as if they allow mail order then one high volume dealer will drive all the local shops out. Still, one commonly sees both price fixing and territory enforcement. Why both? Seems like one or the other ought to be sufficient and would allow for more flexibility of marketing strategy by the individual stores in their region if they were allowed to discount.
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