Another audio dealer closes his shop


After being in business for 35 years audio and video dealer GNP of Pasadena, California closes it's doors. The owner told me he has to sell 30k a month in goods just to break even. He says it's not worth being in business just to break even.
taters
Over the past 30 years or so in the Dallas/Ft. Worth area I have seen high-end dealers come and go at an amazing rate. Only a very few have managed to stay in business, and I believe the reason they have been able to do so is the expanding Home Theater market. There is still enough complexity and mystic surrounding the implementation of a first rate installation to warrant, in the customer's mind, the added expense of buying new and having professional assistance in set-up. Even so, these days may be coming to a close as you can hire expert installers who do not have an investment in 'bricks and mortor' and could care less what type of equipment you may have. High-end audio is a tough business and future for the traditional small business owner model does not look good and may in time pretty much disappear altogether. For myself, I consider it already 'six feet under'.
Unfortunately the bricks and mortar guys really have to differentiate themselves to survive. Back in the day, you got a location, got some inventory, hung a sign, went to a chamber of commerce meeting, sponsored a little league team, became a part of the community and people would shop with you as long as the cost of doing so was not way out of line. The idea of a major purchase made outside of your area was really out of the question for service and peace of mind reasons.

Today, product reliability is far superior and transportation costs are much lower to ship. etc. and availability of virtually everything is amazing. As far as this particular dealer, I don't know anything about them. BUT, if a dealer simply unlocks the door and expects a sufficient level of business to survive is naive at best and arrogant at worst. If you are located in the LA area, which Pasadena certainly is, and you aren't cultivating a good and sustainable customer base with a lineup of brands that people want to buy, you aren't trying very hard.
My first audio purchases 20 plus years ago were through audio stores. I found it to be a mixed bag so to speak.
Some audio dealers were helpful while others simply knocked down my current gear with the sole intent of selling me their gear. I started loosing interest in going to dealers and then the internet came along....Audiogon. I have not been to dealer since and do not plan to either. Times are hard and most folks are trying to figure out how to strecth their dollars. Buying used equipment through Agon... other websites only makes.

Years ago I had a neighbor who owned an audio store for 40 plus years. He's now retired. He mentioned carrying product lines that were more profitable versus better sounding. Makes sense from a business perspective. It made me realize I had to do my own research versus trusting a salesman at a dealership. I'm thankful for the internet and audio websites.
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Phaelon,

"My apologies to the exceptions but, in general, I have so little sympathy for audio dealers that I just couldn’t care less. In my experience, this industry attracts too many hustlers who see a potential for huge unearned profits, and have categorized audiophiles as sheep begging to be sheered.

Another problem is that there is no qualification process, other than the market place, to determine who can operate an audio store. With manufactures and distributors competing for locations where prospective customers can audition their products, it’s too easy for incompetence to find its way into the audio chain. Many dealers like to say that they’re in the business of selling music, not components, but too many don’t know how. They’ll sell you a 30k analog rig but cant set it up for optimal playback. Of course they get trained for set-up, but that’s no guarantee that they’ll make the effort or have the talent."

I have to disagree with your post somewhat. It may be true in some cases, but its not always that way. As far as how the individual stores are run, its a mixed bag. Some, like you say, are just profit oriented and don't care. There are good ones, though, and if you go into the store and get to know them, a little, their easy to pick out.

"Another problem is that there is no qualification process, other than the market place, to determine who can operate an audio store."

On that quote, in particular, you are way off. If you are trying to get a dealership for a well established brand of high end audio equipment, they put you through hell. You don't just call these companies up offer them 25k, 50k or whatever as an initial order to get you going. You have to sign a very strict contract that will be closely enforced, show credit, have insurance, have an existing location that they can fly out and come see, trade references that include other high end brands that you currently sell and will use to support their brand and many other things that I can go on about.

The only reason I bring all of this up is that there is a lot more that goes in to opening up an audio store than most people think. To set a new store up today, with established brands, you are easily looking at over a million dollar investment; just for a small store.

Going back to your original point, I agree in that if they don't take care of their customers, they deserve to go out.