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
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.
People go into the hi end audio business with their hearts, not their heads. I am thankful for that in I don't think we would have some of the great products today if the 'head' prevailed. The Chinese have in many ways given the business a new lease on life, driving down costs of both parts and finished products. Yes, I can't wait to buy my first Chinese automobile here in the States. Of course it will be ordered on the internet and delivered to my door by UPS. No bricks and mortar needed. I will be so thankful that I don't need to visit a 'dealership', where you are always subjected to one of the most unpleasant sales experiences of life.
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