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
The five years I sold and installed Hi F gear in Miami, FL. That was in the late 70's early 80's. Home theater was just starting to develop. Most stores were 2 channel only. Early on I worked at Luskin's Hi Fi as a commissioned salesman. Later I worked for myself installing big systems in the houses of very wealthy people. Most of my equipment came from Sound Components, Miami's only real High End store. I got my own equipment at saleman's comp which could in some cases be less than the store payed.

Commissioning salespeople is OK as long as all the equipment is commissioned at the same rate. Luskin's use to "spiff" it's salespeople for selling certain gear which they made more money on and unfortunately it was usually the inferior gear that got spiffed. It is very difficult for small retail businesses to run on salary. 

In Hi Fi there are two basic types of customers, those that are price sensitive and those that are convenience sensitive. Today, those that are price sensitive and those that know what they are doing and do not need any help, shop online. The convenience sensitive people shop in local stores. Today these people are usually more interested in theater and want one set up in their home. Smart dealers evolved into comprehensive theater stores that just happened to carry Hi Fi gear. This requires a lot more skill and attention in terms of carpentry and installation. It also involves much more expensive displays increasing overhead. Tire kickers are a PITA and the stores do not have time to deal with them. They are out doing installations with the minimal help they can afford. Many of them are one or two man operations. They have to do business by appointment and their customers appreciate this and like it. Those of you who do not like it are welcome to shop online. The stores would prefer you did. If you want to kick tires go to Best Buy and have at it. 
Also, one person’s idea of a great sales experience will not be the same as the next.


Too right. What some here have shared that they find so displeasing in their (less than great) sales experience I may often prefer.

I do recognize that perhaps I come from a different culture - just the way it is.
Being an audio manufacturer, I have to honestly say that regarding this post - most likely - nobody here is their customer base (maybe a few).  And people don't tell their rich friends to go visit a dealer.  I tired not to waste a dealers time but there are so many people in my area that I can go hear something - even Fremer is close by.

I did go to Audio Connection yesterday to hear the new Vandersteen speakers with Richard there to support John Rutan.  While he has some expensive components, he is not in the exotic price range.

The "rich" people who buy my products basically ask how much and when can I come buy and set the system up.  There is no price haggle.  Now their friends do hear their systems and then they come to me to do the same thing.

You aren't going to buy $200K speakers, $100K amps, $50K preamps, $10K cables, etc., so stop wasting their time - period.  Even if they were ten times better that what you own, you still are not going to buy anything. 

Happy Listening.


 

  
You know what chaps my hide? Mom and pops who sell on Amazon and feel the need to open whatever you buy and stick their gd business card in there. Yes, I admit I am extremely anal. If I buy something new, I don't want it opened before it gets to me. Just put your stupid business card in the shipping box. I'll see it.
Let me throw out a few thoughts here. If you’re planning to go to a high end store, your main purpose is to physically be in the room with expensive gear you are possibly interested in and to make your own impressions - if you are there to simply browse with absolutely no intent of buying anything from them, you shouldn’t be there. So, as with any other expensive purchase you should insist on individual customer service, and how do you get that? By making an appointment at a time where you and (hopefully) a knowledgeable representative will be there to help you audition the item(s) you are interested in. Why would you expect anything less? You could always go to your local Magnolia store and wait around while some associate who was put in the music area "for the day" tries to sell you something, anything. So OK, not having personnel present any time you want to pop into a store can be irritating, but that restriction has been in place forever - called "Hours of Operation". It’s just a little stricter nowadays. In addition, look at it from the other side - if you were having someone come to your house/apartment/storage shed to do some work for you, would you be OK with "Well, I can do the work for you - don’t know when I’ll show up and I might not show at all, but I expect you to be home whenever and IF I decide to show up". As far as the pressure that an appointment makes on you to buy, that is not exclusive to certain retailers anywhere, high end or not. Ever been to a car dealership, and did you buy the first car the salesman tried to put you in at the price they threw out? How about a timeshare seminar? The pressure to buy is self-inflicted; if you haven’t learned to say NO easily, that skill should probably be added to your priority list of skills to pick up. Once you’re acquired that, you are immune to any high pressure sales pitches. Until then, tell yourself beforehand that you’re going in to audition but you are NOT going to buy anything until after you’ve gone home and considered it, and if you DO decide to buy something you’ve heard, go back to the store/associate, hear it again to make sure, and buy it. I’ve gotten to the age where I don’t waste my nor the salesman’s time; I tell them what I’m looking for, how much generally I’m willing to spend, what my current system consists of, and let them know what I like/don’t like after hearing it.