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
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.
I think two channel audio is a shrinking market and the
higher end manufacturers need to charge more for their
products to cover costs and make a profit. And as costs go
up you push even more out of the market place. Ten Thousand
dollar amps, pre-amps and turntables have become the norm.
People simply can not afford or justify such purchases for a
hobby when usually only one family member enjoys. Home
Theatre in most respects is different as the whole family
can sit down and enjoy watching a movie and they prefer the
amazement of multi-channel listening.

And I certainly think the internet has changed the way we do
business and make purchases in this hobby. Some brick and
mortar places will continue and do fine as they have
probably changed their businees model to adapt while other
who have not will fold as we have seen. Cost Structure and
the way we do business has been and will continue to be
their demise
Oh well just my two cents and sorry for bloviating
Like Phaelon, I just attended the AXPONA show. For every room that
sounded excellent, there were three that sounded average. There were,
possibly, a quarter that sounded awful. Some of the better rooms were set
up by dealers, some of the worst by equipment reps. The reps seem more
like the general public with limited overall system knowledge. It's a shame
that dealers with skill and good customer service have to work so hard to
compete with the retailers Phaelon has described.
At the end of the day it is sad to see any business close. I am sure the owner of this shop you mention could blame the internet and probably be correct in doing so. Some dealers never got out of the "snobbish" attitude and they really have become dinosours in the audio business. Some dealers feel that MSRP is the price and lose business to the internet by retaining 100% of the profit margin an sales never made. But the sad truth for any customer is that with a diminshing availabilty of showrooms to audition equipment has it's negative effects. First you really don't know what you are getting and second, service.
Although saving 10-20% through an internet purchase, the possibility of a loaner while yours is being repaired vanishes in the bargain. I don't feel that I should have to pay full margin in a competitve market, but I will pay more for the exact product to help keep a business viable to offer future service and problem solutions as well as sampling before buying. The trend seems to be the guy that operates out of his home and many good dealers have made that a successful transition. They reduce their overhead and can be more readily available plus they crate a more "homelike" atmosphere that I find friendly and comfortable.
Again it is sad to see any business fail.