Post by crankyaudiophile on Jul 2, 2012 18:07:55 GMT -5
OK, I’ll admit it. I’ve been spoiled by Factory Direct Audio companies like Emotiva, Seaton subs, Oppo, Aperion Audio and a whole handful of others, which I have had the pleasure of working with and buying from over the past few years. Great products at a great price and excellent service throughout and well after the buying cycle. I’ve also been very pleased with some of the pre-owned products I’ve purchased as well.
Recently, I made some changes and wanted to add a relatively new model two channel preamp to my system and a Phono amp. This particular preamp could not be purchased new, online. Nope, I would have to go to my local “stereo shop” which was 90 minutes away.
I had dealt with this particular stereo store years ago (I’ve enjoyed this hobby for over 35 years). My experiences were not pleasant. There was always an air of arrogance. If I mentioned a product I owned (which they didn’t carry), then with nose in the air, they would make some comment under their breath or huff and puff about my “inferior” component.
I decided to give them another try. Maybe they had improved their customer service during the economic downturn. Maybe they had stepped up their game in light of the massive changes in the industry (factory direct, home theater, computer audio, etc.) Sadly, I was wrong. When I called up and spoke to the owner, the conversation went something like this:
Me – “do you sell the XYZ 123”?
Stereo Shop – “yes”
Me – “great! Do you have one in stock?”
Stereo Shop – “No. We don’t stock that product.”
Me – “Well, I don’t need to hear it. I’ve made up my mind that it is the one I want to try in my system next given the specs and reviews. What is the best price you can do on that?”
Stereo Shop – “$5000”
Me – “But that’s the MSRP. No, seriously, what’s the best price you can do?”
Stereo Shop “$5000 and you will need to pay cash.”
Me – “Hold on a minute, maybe we can work something out. I will also be purchasing a Musical Fidelity M1Vinyl Phono Amp. So, what is your best price on both?”
Stereo Shop – “The M1 Vinyl is $1600.”
Me – “Hold on a minute. I can buy the M1 Vinyl on Amazon for $1115. What is your best price if I buy both from you?”
Stereo Shop – “Huh, well, buying from Amazon is risky. $1600 for the M1 Vinyl and $5000 for the preamp.”
Me – “Amazon offers a 30 day refund guarantee. Do you?”
Stereo Shop – “Sorry, no refunds.”
…..the conversation ended there. Knowing from experience that the typical dealer markup on high end audio equipment is 40%, I was aghast that there was no room for negotiation and they were asking me to pay cash to save them the 4.5% Mastercard/Visa fees. They had not spent any time “demoing” either product for me. They had not been instrumental in helping me design my current system. They had not offered to discuss alternatives and options. They provided absolutely no additional service – beyond potentially placing the order.
Refusing to go like a little lamb to slaughter, I decided to try a new approach. I reached out to a couple of in state and out of state dealers of this particular brand of preamp and asked for their best price.
I have used a similar technique when buying a new car in the past – and it has worked wonders. However, this time, most said, “Where do you live? Sorry, you will have to buy from Stereo Shop A – your local dealer.” Despite my insistence that 90 minutes each way was far from “local”, I wasn’t left with a lot of options.
Then, out of the blue, one of the out of state dealers agreed to sell me the product. We negotiated a fair price and I agreed to move ahead. A few hours later he called me and said that when he went to place the order with the manufacturer, they told him his dealership agreement prevented him from selling me the product because I was out of state. If I wanted to buy this product, I would have to deal the nearest reseller near me – regardless of whether I wanted to or not. After I insisted this can’t be right, he pointed me toward someone at Corporate. I spoke to that person and they too reconfirmed that I must buy from the dealer I don’t like (and pay full MSRP – no haggling). Seriously?
This screams anti-trust. In my opinion – and I am certainly no expert – but in my opinion, this is a clear violation of the Sherman Antitrust Act.
I would argue that the stodgy old audio companies need to be challenged on this. If audio companies don’t want to sell directly to us schmucks, fine. But, they cannot and should not prevent competition between dealers. That my friends is worse than price fixing.
I would further argue that the necessity for a local stereo shop in our constant pursuits within this hobby is no longer needed. We have all come to realize now that their showroom, with their equipment, with their cabling is going to be vastly different then our odd shaped, window filled, funny looking rooms at home, filled with our equipment (some old, some new, some borrowed and some blue)….ok, that’s bad….but you get the point. So demoing me a product in your perfect showroom is not a true test on how your component will integrate into my system, in MY home.
Look, if you are fortunate enough to have a great, local stereo shop – where the owner or a particular rep gives you great service, great advice and has helped you immensely over the years – great! Congrats! You’re one of the lucky ones. For the rest of us, when we want to buy a product not offered by a ID company, we are left to deal with the snobbish attitudes, the price fixing and general annoyances of our local dealer.
I am pleased that Factory Direct audio companies like Emotiva are making great strides and we now have options in this great hobby of ours. Thanks to the Internet, and great forums like this, the audiophile consumer is much more educated than they were say 30 years ago and therefore, we typically know what we want long before we walk into the store.
The Cranky Audiophile
Recently, I made some changes and wanted to add a relatively new model two channel preamp to my system and a Phono amp. This particular preamp could not be purchased new, online. Nope, I would have to go to my local “stereo shop” which was 90 minutes away.
I had dealt with this particular stereo store years ago (I’ve enjoyed this hobby for over 35 years). My experiences were not pleasant. There was always an air of arrogance. If I mentioned a product I owned (which they didn’t carry), then with nose in the air, they would make some comment under their breath or huff and puff about my “inferior” component.
I decided to give them another try. Maybe they had improved their customer service during the economic downturn. Maybe they had stepped up their game in light of the massive changes in the industry (factory direct, home theater, computer audio, etc.) Sadly, I was wrong. When I called up and spoke to the owner, the conversation went something like this:
Me – “do you sell the XYZ 123”?
Stereo Shop – “yes”
Me – “great! Do you have one in stock?”
Stereo Shop – “No. We don’t stock that product.”
Me – “Well, I don’t need to hear it. I’ve made up my mind that it is the one I want to try in my system next given the specs and reviews. What is the best price you can do on that?”
Stereo Shop – “$5000”
Me – “But that’s the MSRP. No, seriously, what’s the best price you can do?”
Stereo Shop “$5000 and you will need to pay cash.”
Me – “Hold on a minute, maybe we can work something out. I will also be purchasing a Musical Fidelity M1Vinyl Phono Amp. So, what is your best price on both?”
Stereo Shop – “The M1 Vinyl is $1600.”
Me – “Hold on a minute. I can buy the M1 Vinyl on Amazon for $1115. What is your best price if I buy both from you?”
Stereo Shop – “Huh, well, buying from Amazon is risky. $1600 for the M1 Vinyl and $5000 for the preamp.”
Me – “Amazon offers a 30 day refund guarantee. Do you?”
Stereo Shop – “Sorry, no refunds.”
…..the conversation ended there. Knowing from experience that the typical dealer markup on high end audio equipment is 40%, I was aghast that there was no room for negotiation and they were asking me to pay cash to save them the 4.5% Mastercard/Visa fees. They had not spent any time “demoing” either product for me. They had not been instrumental in helping me design my current system. They had not offered to discuss alternatives and options. They provided absolutely no additional service – beyond potentially placing the order.
Refusing to go like a little lamb to slaughter, I decided to try a new approach. I reached out to a couple of in state and out of state dealers of this particular brand of preamp and asked for their best price.
I have used a similar technique when buying a new car in the past – and it has worked wonders. However, this time, most said, “Where do you live? Sorry, you will have to buy from Stereo Shop A – your local dealer.” Despite my insistence that 90 minutes each way was far from “local”, I wasn’t left with a lot of options.
Then, out of the blue, one of the out of state dealers agreed to sell me the product. We negotiated a fair price and I agreed to move ahead. A few hours later he called me and said that when he went to place the order with the manufacturer, they told him his dealership agreement prevented him from selling me the product because I was out of state. If I wanted to buy this product, I would have to deal the nearest reseller near me – regardless of whether I wanted to or not. After I insisted this can’t be right, he pointed me toward someone at Corporate. I spoke to that person and they too reconfirmed that I must buy from the dealer I don’t like (and pay full MSRP – no haggling). Seriously?
This screams anti-trust. In my opinion – and I am certainly no expert – but in my opinion, this is a clear violation of the Sherman Antitrust Act.
I would argue that the stodgy old audio companies need to be challenged on this. If audio companies don’t want to sell directly to us schmucks, fine. But, they cannot and should not prevent competition between dealers. That my friends is worse than price fixing.
I would further argue that the necessity for a local stereo shop in our constant pursuits within this hobby is no longer needed. We have all come to realize now that their showroom, with their equipment, with their cabling is going to be vastly different then our odd shaped, window filled, funny looking rooms at home, filled with our equipment (some old, some new, some borrowed and some blue)….ok, that’s bad….but you get the point. So demoing me a product in your perfect showroom is not a true test on how your component will integrate into my system, in MY home.
Look, if you are fortunate enough to have a great, local stereo shop – where the owner or a particular rep gives you great service, great advice and has helped you immensely over the years – great! Congrats! You’re one of the lucky ones. For the rest of us, when we want to buy a product not offered by a ID company, we are left to deal with the snobbish attitudes, the price fixing and general annoyances of our local dealer.
I am pleased that Factory Direct audio companies like Emotiva are making great strides and we now have options in this great hobby of ours. Thanks to the Internet, and great forums like this, the audiophile consumer is much more educated than they were say 30 years ago and therefore, we typically know what we want long before we walk into the store.
The Cranky Audiophile
