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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
jperry
2,450 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
7,046 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.





mckinneymike
89 posts
 
@ghdprentice Your positions are exactly what any high-end dealer that is successful will follow and adhere too.
Professional high-end audio sales people in this day and age is often a one man operation or partners that are very knowledgeable and have good customer skills.
They focus on an experience for the by appointment customer, that is looking for a specific piece of equipment or system. It does no one any good to have low paid individuals as an ambassador of an upscale business that could instantly ruin the reputation of a dealer that is trying to cultivate life long relationships with customers that are seeking expertise and great sound!
I can’t see many open 9am-9pm audio drop-in high-end audio stores these days. Margins are typically 40% of retail, not 60% as someone alluded to earlier. Retail space is extremely expensive per square foot these days and that is why many high end dealers have gone to conducting their businesses from a residential address. It helps the retailer watch their costs, allows them to spend more quality time with a customer and allows them flexibility to deliver/setup systems with their limited budget business models.
In the end people will buy from a retailer that has earned their trust, supported their issues and satisfied their itches. This is hallmarks of successful long term businesses.
Prices are always an issue, but a dealer that turns a customers wants into "a need", garners all the customers they could ever dream of creating. That is when a dealer becomes a friend and partner for life.
bslon's avatar
bslon
2,187 posts
 
@jaxwired “What I am describing is the typical customer experience.”

Not for me.
arch2
308 posts
 
I think dealers like you mention are simply trying to find the business model that will keep their doors open and some money in their pockets. Clearly there are exceptions to all of this but as an audio hobbyist clearly that store isn’t going to be catered to people like me. It’s catered to deep pockets. “One and done” mentioned above is appropriate except if that big purchase leads to another big purchase for their beach house, then a long term relationship is desirable. Does that mean they miss the occasional big purchaser? Probably, but at the expense of catering to a lot of non purchasers which may require additional staff to serve.

That sort of experience is probably typical of any luxury goods dealer (For example me pulling up in my Hyundai to a Porsche dealership) though admittedly I don’t have a lot of experience with luxury goods retailers. The hobbyist (me) would just eat their time with no significant financial reward for them. Do I like it? No. That’s not how it used to be in my hifi dessert part of the country but that’s just how the business is these days. The hobbyists are relegated to the internet and hifi shows, after all it’s the internet that’s forced many dealers to have that sort of business model to begin with but there were some like that even before the internet.

For me, I’ve been fine with relying on the internet. Buy and try. Don’t like it, sell and move on. If I were ever in the market for new Magico’s or Wilson’s, well that would be a different story as I would then become one of the customers a retailer would want in their doors.
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