Retail Buying - Reality Check


Like all of you at some point in time, I caught the Audio and HT bug. I started out at the usual places - Hi Fi Buys, Best Buys, etc. and moved on to the niche, locally owned hi end audio and HT boutiques. There I met generally more knowledgeable salesmen (no women yet). I also started doing my homework out on the web and came upon great sites like Audiogon and AVS Forum to name a few.

Your knowledge and experience has been invaluable to me. Unfettered by the product lines you have to sell, you provide a far more level playing field of unbiased opinion.

Here's my dilemma: I am a small business owner myself, and I value local market presence and customer relations. I'm even willing to pay a small premium for this intangible. However, when the quotes came back from 3 different retailers in Atlanta ($65 -80k), they were all for MSRP plus tax plus design install and misc. such as clips and straps ($250-$500 worth!)

Now most of the hi end equipment today has "burn in" periods of several to hundreds of hours before peak operating performance is obtained. So, buying new at full MSRP also meant getting inferior performance for the necessary burn times. So no big benefit (except some warranties) to buy new.

By purchasing from sellers on sites like Audiogon, and purchasing nearly new or sometimes new products, I have saved $16,000 plus $1,000 in sales taxes on approximately $50,000 of my quoted MSRP prices. I'm not done yet. I also have the flexibility of buying the exact product line I want, not just what my store has to offer. There is great pressure in the retail setting to go "one stop shopping" at your store of choice.

I understand these stores need to make a profit. However, 50% markups on items that they don't keep in stock and have to special order, seems out of line to me.

Caveat emptor is certainly a key consideration in on-line purchasing, but to date, through careful checking of prior seller transactions, prudent payment techniques and telephone conversations with the seller to allow me to make some kind of character call, I have had nothing but outstanding, as promised transactions.

I hired a HT acoustical designer and a certified installer and I couldn't be happier, except for one thing. I still feel a little guilty about not buying from the guy with the storefront who spent time with me. I just wish they'd recognize where they do and don't add value and charge accordingly.

Anyway thanks guys, for the great education and advice you've provided me.

What say you?
rogocop
Foreverhifi2000, your response cracked me up!

Beautiful parody of the egotistical self-righteous attitude that typifies why I so dislike high end stores! Very, very funny. You captured that I-know-so-much-more-than-you essence so well--you know, the whole thing that drives consumers like me away sooo fast. I just loved it.

The caps were a bit over the top tho'--kind of made you look like you were ranting or something.
If you are dropping $60k to $80k on a system, you SHOULD get at LEAST a 20% discount off of MSRP from a dealer. Especially if that dealer is doing the installation.

This is what I would suggest:

Contact:
http://www.sounddecisionsllc.com/contact_us/contact_us_1.htm

These guys are located in Birmingham, AL which is not that far from you. I used to work for them and they do great work.

They should give you a quote of at least 20% off MSRP (especially if they do the installation).

Let me know how things work out.

You can email me at: tok20000@aol.com
AOL is bouncing emails from Audiogon and it is driving me nuts.

Sincerely,

KF
Zaikesman,

Believe or not, I went into the stores hoping to find quality products and expert advice at competitive prices. Had I been able to do this I would have bought new and paid more. No problemo. What I found was quality products (with a unwavering bias towards that which they sold), varying degrees of expertise (from brilliant and impassioned (I really liked him because of his obvious love of his craft) to someone who didn't know the difference between the gain control and crossover switch on a Velodyne sub. (He kept insisting the switch (the gain) was fully turned up when I asked him what frequency it was crossing with the mains.) and laughable prices. It was only at that point when I had real bids in my hands that I thought of looking seriously at alternative markets. I stopped going by the stores, although now the salesmen keep calling wanting to "earn my business". I don't waste anyoneone's time intentionally.
Tok20000

Thanks for the suggestion about your friends in Birmingham. At this point though, I am much further down the road with all the amps, processors, speakers (except surrounds), & projectors I need. (I really was a ready, willing and able buyer when I walked into the retail stores). I will stop over there next trip, meet them and keep them in mind for other fututre needs.

I appreciate the suggestion.
It's becoming quite clear that the Internet does a much better job serving niche markets than bricks-and-mortar stores do. Sure, the local guy can theoretically provide more "service," but how much service do audiophiles need? Home theater design and installation is a different case, which is why the local guys who are still around are getting into it as fast as they can.