2. misc-audio
  3. 170550-1285

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
larryro2
137 posts
 
When I go “shopping” for costly good I make sure that I do not wear an expensive watch or shoes and what goes in between follows suite!
that allows me to decide not the sales force as to what I purchase!
one time a auto salesman looked at me and pointed to the emblem on the car and asked if I could afford it!
true story!
however my dealings with audio sales has been excellent in the past- I recall once getting a call stating that the dealer had a pair of speakers I was looking for and but was six months prior to the call that I expressed my interest!

orgillian197
119 posts
 
I am a retired territory sales manager (not in audio) who saw, over the years, how some business persons "get it" and are successful no matter where they are, some are lucky enough to have a great location and are successful until they aren't and others never "get it."

Retail is a please the people business - if you're selling something they want or need at reasonable prices and don't treat your staff and customers like sh*t, odds are you will do well. But the potential market for any sales category decreases with higher prices as you have fewer potential customers, even with liberal credit policies. The Porsche dealer will rarely have more potential customers than the Chevy dealer. That said, if you sell enough Chevies, you can make more $$ than the Porsche dealer, you just have to have more transactions.

Repair work and installations are more profitable, in the long run, than straight up retail sales in most markets and that's why the OP and others are running into the gone on an installation signs. That's the reality of business these days as it's the only way for many dealers to add value and profits. 
audiosaurusrex's avatar
audiosaurusrex
320 posts
 
I believe customer service is the best business model. We have a few of those stores here in New England that only offer high end gear and that's it. Make an appointment! That's okay as long as there's no pressure sales. There is a store in Chicopee MA that does car audio installs but also high end audio. They have very consistent hours but also have a strong online presence with extremely good pricing. Great customer service and being treated well. That for me gets the sale!

larry5729's avatar
larry5729
1,009 posts
 
You should try going to the Magnolia store in Lone Tree, Colorado.  The manager there is the most unfriendly person on the planet and then he expects you to buy something from him.  

Our largest dealer in town with the best lines have sales people who are stuffy.  As though you are doing them a favor to talk to you.  I have been there several times and I get stuck with the same sales person.  I have asked him simple questions, already knowing the answer, and he responds I don't know but let me find out.  All I know is if I worked there a couple of weeks to a month and someone asked me a question I would have the knowledge to answer them.  Sales people either have the passion for what they do or they don't.  I would think most people with passion would retain knowledge because they were excited about what they are doing.  To make things worse their sales people come across stuffy.

I also think buying such expensive equipment would provide enough margins to allow a customer to negotiate.  I think what happens is when customers get turned down, they simply walk out of the store and buy it over the phone with an out of town merchant.  The merchant feels they can bury the purchase, make a few bucks and no one will be the wiser.  In the meantime the local stuffy hi fi store goes out of business.  

Right now car dealers are selling cars at full sticker price because they can.  You wait...things will change and customers will get even with them by offering a huge take it or leave it discount.  Those of us who were treated like dirt will remember and we will get even.  No one, regardless of the market, wants to be taken advantage of.
sns
3,351 posts
 
Almost forgot to mention.
Arnie, originator of  Audiogon, had a store in Ann Arbor, Mi called Accutronics, best audio store ever. Took in trades and purchased used items from all over nation, just tons of used high end to pick from, also sold new.  He'd let me listen for hours, set up potential purchases of mine, whether new or used, into his showroom systems. So giving of his time, I had tons of questions, learned so much from him. Occasionally, he'd invite my fiancee and I  to his upstairs private system, I recall lots of Jadis equipment, my first listens to extreme high end, just amazing!  My system at the time was sorrowful in comparison. I liked the feeling of purchasing items from him, enjoyed supporting a business so generous with it's customers.  Arnie spoiled me for what I expected from audio stores, sigh!
More to discover