Another audio dealer closes his shop

We have a high end dealer in my town, Summit New Jersey. They have been in business for a least 25 years. I doubt they do $30K per month, but I believe they own their own real estate, which provides a huge economic support for the business. I am sure they will leave the business soon as the opportunity cost of real estate will provide more profit. Most new dealers apparently have adopted the home/business model that cuts the overhead. Years ago I did inventory financing for some New York City dealers. While it was profitable for me, the dealers in most cases did not survive, and that was before the internet.

Hey Sudz. You made the exact same post last month.

Yes, competition is ruthless. I tend to think the manufacturer is a big part of the problem as well. It is difficult to draw more people into this hobby when the price of admission becomes more costly. For example an entry level preamp is $7000. For a shrinking market it is difficult to recruit new customers with that kind of cost.

As taters mentioned about the super rich mainly having theater rooms but no dedicated 2 channel systems. Could this be the reason why dealers are doing better in the HT market. I agree with taters that everyone I know who owns high dollar systems would be considered middle class living in modest homes (me included). So perhaps the industry has their numbers crossed. They need to be charging outrageous prices in the theater market and come down to middle class prices in the 2 channel market :)

I have often wondered, if the High End industry were much better at marketing to the general public. Not just in audio mags, and nowadays audio websites. If things would be a bit better for them.I have been a newspaper press operator for over 30 years and have only seen one ad. I have been a fan of music ,musical instruments and nice stereos since I was a teenager. I never had a problem finding where to buy music and instruments.They always advertise ,and I always see the ads. Not so with High end audio.Im many cases Ive drove miles to out of the way audio dealers that I heard rumors about,or drove down a unfamilier street and out the corner of my eye caught the word audio or stereo.I would have started much younger if only I had known!I think more folks would get into the hobby were it marketed better.My two cents.