Electronic Retailer's, Going By?


good article in the wsj today on subejct. http://online.wsj.com/article/SB10000872396390444772804577621581739401906.html?KEYWORDS=electronic+retailers

Much of the journal applies to the brick and mortar audio retailer specialist. If the big guys are having trouble, small shops are under dead threat from the online crowd.

What do you think?
buconero117
Audiooracle, I hope you succeed. Your business model suggests it is driven more by passion for audio rather then profit and loss. Finding, and keeping, sales people who are motivated like your self may never be possible. Carrying a million dollars worth of display inventory plus stock inventory, unless self financed, suggests doom. I did floor financing for many brick and mortar audio stores many years ago and for most of the owners it did not lead to any profit, given the discounts the market required. I made money, they did not. Think about it, in a real sense your display inventory cost to carry is at least $100K per year unless you do a 100% inventory turn every 30 days and can finance all inventory through manufacturers terms. Remember, Amazon's profit in many cases comes from the payable float of not paying vendors for three months after an item sells. I do wish you success as I love to visit stores like yours, especially to hear speakers, and 'kick the tires', but not buy which I do on line or direct from the distributor.
I will only buy from my local shop. Once he's gone what else is there? Who's going to leave my $5000 amplifier on my door step? I know I can purchase what ever I want for less money but audio is one area that I'm willing to pay more. I buy everything but groceries and gear online. I pray to the gods that I don't some day have to stay home from work for the tractor trailer to arrive with the speakers ive never heard.
Don't worry, the Apple stores will fill the gap. What kind of freak are you, not wanting to listen to downloads thru your Apple headphones/buds? No need to even buy music, iTunes will have a real time download of every recorded title in the universe. Oh, the monthly sub fee is only $109.99 per month. Why clutter up your life with anything else. When you die, all your music will die with you. Rumor has it that Apple will soon be in the concert business, leaving no profit for anyone else. I hear that they have just signed 'Pussy Riot' to a long term exclusive contract, with a concert tour planned for their release from jail. You never know.
buying on-line with return privilege (in-home audition) seems to me the viable future for the audio business.

it lets you hear a component in your stereo system.

if a dealer will lend equipment why bother to listen to it at the dealer. you can't tell whether you will like the component in your stereo system.
Good point Mrtennis. I just love going to my dealers place to be surrounded by amazing gear. My local guy owns the business and its just him and his wife. No high pressure sales. Sometimes we go for a cocktail or have dinner. I will only buy from him because I like the lines he carries and he can pretty much get me anything he doesn't. As a result I get stuff like cables at his cost. I saved $300 on my speaker cables alone. He will let me borrow gear if my stuff is in the shop so I'm not without tunes. It's just nice. I feel lucky.