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
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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Elizabeth,

In the audiophile world an entry pre-amp would be about 1000.00. If you are talking mass market then 200.00 would suffice.