Jimaxp, I agree there are real risks for main street hiFi stores, but there is a model for how to survive. The clue, bricks and mortar. In the UK, nearly all the independents have closed their stores and operate from home, or a small lock up industrial unit. Stores mean fixed costs, requiring a certain turnover. Get rid of that and you get of a lot of your problems, you do'nt need a minimum turnover to cover costs, you still need a turnover to eat of course.
The remaining cost is mainly dem stock and that is becoming a problem. The dealers/distributors are'nt getting in Dem gear in the current environment. For example I am looking at the Coincident Super victory, partly from the Stereo Mojo review. The UK distribtor does work from home and wants to get a super victory in, in the current environment, he does'nt feel he can justify that. I want to hear the speaker, he can not be sure I want to buy it. I spoke to another UK distributor recentlty of many famous brands, one of the biggest in the UK, he says business is down 65%. He will survive by hunckering down, trying to keep ticking over and avoiding unnecessary costs.
Dealers and distributors, survive like any other business, by reducing costs, staff etc and waiting out the storm. The problem then is, how long will the storm last. It will be longer than most recessions in the last 30 years. Ultimately, that will be the killer.
The remaining cost is mainly dem stock and that is becoming a problem. The dealers/distributors are'nt getting in Dem gear in the current environment. For example I am looking at the Coincident Super victory, partly from the Stereo Mojo review. The UK distribtor does work from home and wants to get a super victory in, in the current environment, he does'nt feel he can justify that. I want to hear the speaker, he can not be sure I want to buy it. I spoke to another UK distributor recentlty of many famous brands, one of the biggest in the UK, he says business is down 65%. He will survive by hunckering down, trying to keep ticking over and avoiding unnecessary costs.
Dealers and distributors, survive like any other business, by reducing costs, staff etc and waiting out the storm. The problem then is, how long will the storm last. It will be longer than most recessions in the last 30 years. Ultimately, that will be the killer.