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One big reason why brick and mortar high end audio dealers struggle.

I live in a major metropolitan area with several close by high end stores.  I never go in any of them.  A dealer just opened a new location 5 minutes from my house.  Major dealer with Magico, Constellation, McIntosh and many other serious brands.  I went by a couple weeks ago mid day on a Friday.  Door locked, nobody there.  I call today to make sure they are actually open for business.  Guy answers the phone and says that they were out on an install when I can by and that they are short staffed.  No problem, I understand.  But from that point on the guy takes a subtle but clearly defensive and pissy tone.  He states that they recommend setting up an appointment for customers to view their products.  Sure, and I recommend never going there.  Off my list.  Back to buying online.  Here's the issue.  So many of these high end dealers are only after the wealthy guy that comes in, spends less than an hour there and orders a complete home theater or 2 channel system and writes a check for $50k or more on the spot.  That's there customer base.  I get that it can be annoying to allow a bunch of lookers to come in and waste their time and not buy anything, but isn't it good for business to have more customer traffic?  If someone comes in, spends an hour there, listens to some amazing gear and then buys nothing, doesn't he tell his friends and family and coworkers about his great experience?  Isn't this word of mouth valuable?  These brick and mortar dealers almost universally are unwelcoming and unfriendly to people that want to come in and just look and listen and not buy.  Sorry, but the vast majority of potential customers are not going to spend 20 minutes by private appointment to order their new $100k system.  Why not encourage people to come and spend time with zero pressure to purchase.  I have purchased dozens of high end speakers and electronics over the many years I have enjoyed this hobby.  I might well buy from a dealer if they were actually nice, friendly, and encouraged hanging out and getting to know their gear.  But they don't.  I would never go to a high end store that required an appointment.  Because this creates a huge pressure situation for you to purchase that day.  I'm not ready to purchase on my first visit.  And neither are thousands of other potential customers.  If they can make a good living just catering to the wealthy one time buyers, then, ok, good for them.  Doesn't seem like they can though since so many have gone under.  Maybe it's time to try a different approach?  Step one, no commission sales people.  Step two, welcome people to listen and not buy anything.  Encourage it.  This will create positive word of mouth and significantly increase customer traffic and ultimately create more paying customers it would seem.  I don't get it.  Rant over. Please don't respond that you have an amazing dealer.  I'm sure they exist but they are the exception.  What I am describing is the typical customer experience.
jaxwired
jerryg123's avatar
jerryg123
3,429 posts
 
I have a great dealer LOL called the internet….

I travel a lot, get to go all over the world and I stumble upon some great gear. If I want it I find it in the US and buy it.

Really a lot of these high end guys are as you stated they are looking for a whale. They are not looking for long term relations with their clients. One and done. 
oregonpapa's avatar
oregonpapa
4,867 posts
 
jaxwired >>>

  •  "Step one, no commission sales people."

Why the attitude regarding commissioned salespeople? No offense intended, but you are displaying a common prejudice regarding salespeople.

The difference between what you experienced, and commissioned salespeople is this: The person you dealt with over the phone has no idea what business he's in. He actually believes that he's in the audio business, a common mistake made, especially by propellerhead techno-freaks.

 A professional commissioned salesperson, on the other hand, understands that he/she is in the people business and that his/her success, and very livelihood, depend upon how he/she treats the customer. What the professional salesperson knows is that the first concern is to find out what the customer's needs are, and then to satisfy those needs. And then ask for referrals. 

I speak from experience here having spent over 50 years in commissioned sales.

 I once worked for an ultra-high-end audio dealer and watched the guy, over time, mastermind his way out of business. You've described his attitude very well in your post.  His people skills were nonexistent. He was actually bothered when people would come into the store. He told me once that they bothered him because "they take me away from my paperwork."

There were many times that I had demonstrated equipment for qualified customers and was just about ready to close the sale, only to have this nerd (the owner) come out of his office, proceed to start talking about slew rates, capacitors, resistors, etc. At that point, I would watch the customer's eyes glaze over and then watch them walk out the door without making a purchase. He kept blowing multi-thousand dollar sales until finally, he had to close the doors. All the customer wanted was to get well-reproduced music in his/her home. They were not looking for lessons in electrical engineering. 

No matter what I said to the guy, he just never got it. As a result, his investment of hundreds of thousands of dollars went right down the tubes. To this very day, I still don't think he gets it. 

In general, your assessment is right on the mark. Why people with no people skills opt to go into a retail business is beyond me. 

Frank
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cleeds
6,055 posts
 
jaxwired
So many of these high end dealers are only after the wealthy guy that comes in, spends less than an hour there and orders a complete home theater or 2 channel system and writes a check for $50k or more on the spot.
What makes you think that is how high end dealers work?
I might well buy from a dealer if they were actually nice, friendly, and encouraged hanging out and getting to know their gear. But they don't.
You're visiting the wrong dealers.
I would never go to a high end store that required an appointment. Because this creates a huge pressure situation for you to purchase that day ... What I am describing is the typical customer experience.
Why would you fear a "huge pressure situation?" I suppose that could happen under any circumstance but if it did, you could simply walk away.
Why are you convinced your fear is "typical?"
jperry
2,468 posts
 
Have you considered that the dealer did not want you to be disappointed if you came by again and they were not open?
ghdprentice
7,438 posts
 
I understand your frustration. I remember back in the 80’s and 90’s I used to go to high-end stores to audition systems way out of my price range. I hoped for no other customers. The sales people would quickly figure out I couldn’t afford the stuff and ignore me. But I would get to listen to great equipment. Typically they would have some young minimum wage kid to take care of me… so the really knowledgeable guys were free for high end customers. Probability of sale low.

Fast forward to the 2000’s. I am a busy executive flying all over the world with no time, but with money. So, I know I will be in Delaware on Friday. I call up the high end shop… tell them what I have and sound I like and make an appointment. They set the main room with all the appropriate equipment. So, I walk in, have the whole place to myself. Probability of sale… very high.

I now have a dealer that I have had a close relationship with for 20 years. He brings equipment to my house for me to try. My dealer will occasionally spend an afternoon at my house listening to music. Recently I was auditioning a $20K amp, he brought over a $17K DAC that I didn’t ask for or want… he just said, “trust me, you want to hear this”… About a week later out of respect for him I tried it. 30 seconds later I sent him a message and said, “Sold, order one for me”. 

So, who is a business owner going to cater to? Many people that have money have no time. Today it is hard to find people to take low paying jobs. So, the business guy does what he has to to remain in business.





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