Starting a high-end audio shop... Am I crazy?

Just a couple comments on starting up online.

Be aware that many (most) manufacturers have very strong no-internet sales policies. It defeats their dealership licensing agreements. That may restrict the pool of equipment you have the ability to sell. Also, internet sales are usually much lower margin than B&M.

Before you decide one way or another, prepare a thorough 5-year business plan to make sure you understand what it's going to take to do this. This will also help you identify what things you don't yet know. Finally, be VERY careful about assumptions in your plan. Be as conservative as you can be.

Best of luck!

Thank you all for your comments (and keep them coming if you have more to add).

I think high end is another business where the internet will continue to move ahead of brick and mortar - so starting online would be key - a retail store may or may not ever materialize. More manufactureres will continue to allow/embrace online sales. There are so many brands that have very limited distribution - I don't think I'll have trouble finding 10-20 good brands (good/mediocre...?)

I have no intention of quitting a good day job until a side busines sarts flourishing. But I have been very underhappy in the high pressure field of insurance and finance. But I do have this sinking feeling that its a little crazy to enter a field that seems to not be too financially healthy to begin with. Hi end audio is in general poorly marketed, poorly understood by consumers.

I understand I would have to subsidize the high end stuff with home theater installs, mid-fi stuff and even an ipod or two (and even continuing to sell insurance on the side) Anyboy need life insurance out there? (Like insurance salesman aren't a dime a dozen.)

I think the first step is to think about builind g a website and lining up some good brands that need distribution - my wife can fulfill mailorder/internet orders while I'm at work!! Just wait till I give her the good news...!!!!

Don't waste your time and money....this is about the worst job switch I can think of.
Larry

I would highly recommend starting it out of your home in your spare time. As others have mentioned this is the safest way to go. I have two local dealers here in Colorado who have very nice showrooms in their homes which allows them to spend money on inventory instead of rent, you can find both on the web, not sure if they will give you any advice but worth a try.

BTW, even the hardest 2 channel guys are moving to HT as custom installs are the highest profit of all and often the client is not fussy about components or budget.

Here is a contrarian thought:

As we know them, the world probably does not need another audio store. So the short answer to your question is: you probably are crazy.

But it seems to me that more and more and more and more people want some sort of multi room, home theatre, media servers wireless networks streaming digital music etc.

Simultaneously, there are no strong brands in the eyes of the mass market, other than perhaps Sony, Bose etc.

Amar Bose is worth a few hundred million bucks.

If I were you, and I were really thinking BIG, I would think about presenting all of this technology in a new, exciting context and/or building a brand for people who CAN AFFORD IT.

NOT for audiophiles who are too smart, too fickle, and less likely to pay high margins to someone who in their opinion probably knows less than they do.

So to set up shop trying to convince people to listen to music and buy geeked out high end equipment? Hmmmmm.....that one might not impress the business schools.

But certainly, there is a way to get rich and have fun selling consumer electronics but I would start by thinking "out of the box"

Best of luck.