Are internet sales taking business or not?

We are seeing the evolution of the retail business from store front to the internet across the entire market place.Market forces will resolve these with time.For example a manufacturer could stop distributing its goods through retailers who mark up their price by ca.100%.Some european high end manufacturers are priced out of the US market because of the retailer markup.There are high end furniture manufacturers who have their own showrooms and avoid the extra mark up.
When I started the hobby 40 years ago the high end retailer was a hobbiest.The service was great you could borough equipment to listen in your own home,he was set the system up for you at no charge etc.In contrast the retailers in my area provide very little if any of these services.When they provide sevice at an exorbitant cost you are lucky if you get a serviceman who does not need a manual to figure out the equipment you just bought.I would be be willing to pay a premium for good service.I believe within 10 years from now only highend stores left will be the ones owned by honest dedicated hobbiest providing superb service including home installation.

High end audio sales was a closed society at one time. This dates back to the day when the enthusiast started his own business. They did everything for the buyer, even holding you hand as you wrote the check if that's what you wanted. In return, they kept all their knowledge secret as if they were performing some kind of voodoo for your benefit. They didn't explain much which kept you coming back. The buyer relied on his ears and budget in making a purchasing decision. In many ways that was a very good thing.

As the high end business grew technicians and knowledgeable sales staff left the business for other careers with most remaining enthusiasts of the hobby. These folks have shared their knowledge through the internet which gives us all the ability to make a fairly informed choice even without the opportunity of prior audition. In many ways the high end salons provided a revolving door (a training ground if you will) through growth for all the people we take advice from.

At one time auto sales were the same way. Ever try to buy a NADA price guide 30 years ago? People didn't know how much money the car business generated until some that left wrote books or started some other type of venture to reward themselves from part of that businesses earnings thereby educating the consumer. It's inevitable that the audio industry will become hyper competitive just like the car business. Service may be poor nowadays but it will get even worse until audio franchises are traded on the NYSE. Maybe that's an exaggeration but the point is valid. Knowledge and valuable advice are now a couple of clicks away and free of charge. IMHO, that is what has changed this industry so very much.

Maybe if there wasn't so much mark up locally; one wouldn't look to the 'net if they could get it locally for a simliar price. Then again, there will be those that want many services from the local dealer that add to the cost...

Maybe it is a fault of manufacturers for setting high list prices.

I wouldn't mind paying more if I got some service. You don't give me any service; you don't get my money. It's that simple. I walked into a local dealer about three months ago to purhase a pair of B&W N805sigs. He didn't have them hooked up and said he was too busy to do it now. I was the only person in the store. He was really too busy eating lunch. He said that he would call me when he made some time to hook them up. Needless to say, he never called. I took my business down the road and had a pair in my hands the next day.

Yes, without question. I should also note that few high-end
retailers have been able to stay solvent (even before the
crush of the Internet). It's a tough business!!