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
I understand that some dealers require appointments.  If that is the case, maybe they should place signage that says appointments only.   Or hours where appointment are only accepted and walk ins other times.

Setting up rooms for tire kickers takes time and 9 times out of ten these days, people go into brick and mortar stores to demo equipment, try clothes on and then go on the internet and purchase.  

I for one like and appreciate brick and mortar stores.

Back before he retired, Steve from Stereo Design had no problem at all allowing me to go the stupidly expensive sound room and play whatever I wanted.  Whether or not I bought anything.  He knew I loved driving down to San Diego and just hanging.  His used equipment room was heaven.  He would let me take equipment home to demo in my home because He knew that if I really liked it, I would probably purchase it.  I miss Stereo Design.

Randy at Optimal Enchantment was the same. I would call and he would say, come on over.  He only had one room.  But, he would demo what ever I wanted and just play the music and not say a word.  He knew. 

I never pay for bad service. people that look me up and down or that can't be bothered to answer basic questions or worst, lie outright, I have no time for.  Except for racist, bigots, etc.   the days of the Pretty Woman scenario are well in the past. These day, dealers have absolutely no idea who is walking into their store. That person could very well want the best and is willing to pay for it.  So keep that racist, bigoted, stupid attitude behind a locked door please.

I have walked into stores and requested that certain speakers or amps or pre-amps be connected and played.  If they are sitting in the room not connected.  There should be no problem hooking them up.  otherwise, why are they in the room?

I also shouldn't have to play 20 questions with the salesperson. However, I do understand the need to get to know the customer vs tire kickers.

It is to me the attitude of the dealer/sales person.

enjoy
Long ago margins in high end audio were high. Also, the purchase cycle was long. Cultivating a customer now would net you sales in a few years. It was how you built a good business. Inspire a person today and they will buy some day when they have money.

Today, high end dealers must cull out people that will listen at their shop and buy on the internet. It is honestly pretty disingenuous to do this, they have a business to run. People that can afford to buy want, what a dealer can provide a stressless purchasing experience. When I received a unit which had a meter that didn’t work, my dealer came over to my house, gave me his demo, ordered a new one, delivered and installed it, without me lifting a finger. For over $20K… I don’t care if I save a couple grand… I don’t want the hassle… I am retired.. I want to enjoy life… not wrestle 150 lb amps into boxes and call shipping companies and not have a working system for weeks. So, I am completely on the side of the dealer in getting disingenuous buyers out of the store.

I am the kind of customer that high end audio dealers want. They are the kind of guys I want… someone that can intelligently discuss and and help me choose the very best equipment for my tastes and makes sure there is never a glitch in the process. Dealers that get that… will survive and thrive.
We seem to be universally blaming the tire-kickers who end up buying online, and we seem to be debating the qualities of dealers who can be unwelcoming and condescending.

The assumption is that it's cheaper to buy online. But is it? Which high-end companies allow their equipment to be sold online for less than MSRP? Which online sellers sell their equipment for less than a brick-and-mortar store? I haven't noticed Moon-Audio or Audio Advisor discounting much, but maybe I've just missed it. Or are we talking about the grey market here?
I think we are often referring  to the wide availability of used equipment, and the internet availability of authorized dealers selling demo and factory refurbished...all at extreme savings
Thanks. I don’t see much to do about used equipment, though I can see why that’s a problem for dealers. As for authorized dealers, it makes sense to me that the companies should either not allow authorized dealers to sell demos/refurbished ... or brick-and-mortar stores should also sell demos/refurbished. (Obviously they DO sell demos and trade-ins.) It also seems to me that brick-and-mortar stores can set up online sales for such items, as many already have.

I’m simply trying to figure out where the problem is here. The used market and the grey market undoubtedly detract from dealers’ sales, but that’s simply an escalation of a market long available to buyers. (I don’t mean to underestimate that; of course the internet has dramatically enlarged that market.)

Over the last couple years I’ve had long talks with three highly-regarded, multi-decade brick-and-mortar store owners. All said that it’s a much harder business than it was twenty+ years ago, and all were resigned to selling HT stuff. Interestingly, none of them mentioned tire-kickers or internet sales. They talk about the changing values of their customers, saying that younger people these days (under 40) simply aren’t as interested in two-channel systems as they used to be. As far as the mid- to hi-end market, I wonder if that’s really the problem that dealers are facing.