You’re An Independent Dealer, Which Companies And What Products Would You Represent?


Hey All!
 I live in an average sized city where there are two brick and mortar audio stores. One is modest in both budget and square footage but has great customer service, offers quality products from entry level to high end and works with customers on price. The other one is a mega store with a huge inventory from entry level to very high end, has great customer service but won’t budge on price and wants to be the biggest store on the east coast. Personally, I like rooting for the underdog. So today, I stopped in and chatted with the salesperson at the small store, who I’ve come to know over these many years. He was telling me that the bigger store was carrying the same brands and products that they’ve been carrying but that they were buying inventory in mass quantity. And, that the only way for the small store to separate themselves from the mega store would be to represent companies and products that the mega store can’t or won’t showcase. However, which companies and which products, this is the question. The first thing of course that popped into my mind was to regurgitate everything favorable that I had read about on these forums and from the reviews on 6 Moons, What HiFi, Stereophile, etc….But I stopped myself and I’m glad I did and I said, ‘well there’s certainly a lot to choose from.’ And this is where you come in. So, if you were the owner of a smaller (think size of an average three bedroom house), independent brick a mortar audio store, what companies and products would you ideally choose to feature in your showroom? As I mentioned previously, anything (pragmatic) from entry level to high end. Let’s say for clarification that the $50,000.00 McIntosh subwoofer would be thought of as too extravagant. Eventually, my hope is to direct my dealer friend to this post as a means of inspiration.

Thanks!

 

goofyfoot

There’s a coupe of business metrics that caught my attention over the years that I’d like to share.

98% of very satisfied customers will do business again at the establishment. I like the odds here. Certainly makes it worth the effort to keep customers happy.

A 5% increase in customer loyalty doubles the lifetime return on investment. I like the math here, too. New customers are essential for business growth. But, they are very expensive to attract, and increasingly difficult to sell to. Existing customers and referrals build retirement income. You need both. Once those new prospects are converted to customers, then they will pay lifelong dividends if treated right (not ignored).

Seems this conversation has taken a discursive direction, which is fine. Anyhow, I wanted to add that on most any post in these forums, people are jumping out of their skins to recommend their favorite brands and products. I just hope you feel the same here. Thanks!

As a long-time audio manufacture representative, I find this discussion both refreshing and enlightening.  I believe in brick and mortar because I never heard anyone say I got the hi-fi bug by any other means than hearing a stereo that did something unexpected.  Setup and service are vital.  It is so refreshing to see Bliss HiFi, Kevtekav, and waytoomuchstuff sharing vital information for success.  My ideal dealer is a small stereo shop driven by passion and love or people.  These tend to be from 1 to 5 guys and gals, banded together by a search for excellence.  We spend way to much time talking about what are the best components and not nearly enough time talking about knowledgeable and experienced dealers.  

 

Kharma

JM Lab Utopia line

VAC

Boulder

Nagra

Add some turntables, dacs and cables and it should do it.

Oh, and amps and the pre-amps EAR-Yoshino, Pass Labs, Atma-Sphere, and perhaps Zesto, VTL, and Manley Labs. For cables Auditorium. And the full Vandersteen line.

One main reason dealers need to be selective is that they have to sell enough of the product of each line they carry to meet the minimum sales figures each company sets for their dealers. Selling 10 of one company’s amplifiers serves the dealer more than selling 5 each from two companies.

My dealer pal Brooks Berdan was a dealer of both Vandersteen (one of Richard’s first) and Wilson. He sold a lot of Vandersteen Model’s 2 and 3, and the Wilson WATT/Puppy and it’s descendants. He could do that because the two lines were not competition for each other; each had it’s own customer base, based on prices (and sound characteristics, of course).

When Vandersteen introduced the Model Five, Brooks told Richard he wanted to sell only the Model’s 2 and 3, not the Five. That was not acceptable to Richard (nor would it have been to me), and Brooks was no longer a Vandersteen dealer. Brooks took that position because each pair of Model Five’s he sold would result in him selling one less pair of Wilson’s; they were direct competition to each other.

At one Vegas CES I attended with Brooks, I sat in at a meeting he took with the sales manager of Wilson, and learned how the hi-fi business works. Apparently keeping Wilson happy was more important to Brooks than was being a Vandersteen dealer. I thought Brooks was making a huge mistake, but what do I know? Brooks was a very successful dealer.

When Brooks passed away, his step-son Brian---who had taken over running the shop as his dad became ill---kept the high standards Brooks had established (Brian grew up learning at his dad’s knee), selling Wilson speakers driven by VTL amps. He eventually branched out on his own, and now sells Wilson and VTL in his shop in Pasadena, Audio Element. Like Brooks, he is a great hi-fi dealer, and like Brooks, an expert at turntable/tonearm/cartridge setup. No, I don’t work for him. 😊