Open A Stereo Store Are You Crazy?

[jmasterj]

Hi All,

So I just skimmed over the article in Home Theater Review that ask " Would You Open A Stereo Store"? I thought it was a interesting question mainly because back in the day, yes I can remember back then, I had often toyed with the notion that if I ever came into some money that's exactly what I would have wanted to do. Open a small stereo equipment store selling a few products that you wouldn't find at the department stores which was where most people who had systems purchased their equipment from back then. This was before Circuit City, Best Buy, Frye's, and the other large item brick and mortar stores took over, and killed the business. Yes I went there.

I remember thinking back then how I could take the frustration part out of purchasing AV equipment. In those days most salesmen had little or no knowledge of audio equipment, even the brands they were selling. They couldn't answer even the most basic questions about a receiver like how much power dose it put out per channel. You were more likely to hear I'm not sure but as you can hear it gets plenty loud. They were more interested in pushing customers toward the products with the highest mark up, not the best sound for the dollar. I always thought in my specialty shop you would get one on one service, my goal would be to put you into a system that would give you champagne and caviar at beer and pretzel prices. You might spend a little more than your budget but you would have a system of much better quality.

Alas that never materialized. But given the opportunity today would I attempt that venture. No Way ! I'm not going to get into the conversation about the new generation and how they don't care about the quality of sound like we do, but you can. I won't discuss the internet big boys like Amazon, or even the internet direct sales companies that would cripple my chances at success. I will however bring some of my reality to bear.

I've lived in my current location for just over four years. During that time I've literally seen the entire building that I live in turn over in tenants three times. It's a nice location away from the hustle and bustle of the strip. It's very well maintained and the rent is reasonable. It's very quite for the most part because when someone moves in that's too rowdy we complain. The reason for bringing this up is during the four plus years here I've met a few people specifically my neighbors. The first neighbors next door were a couple of sisters who relocated from Cali.

We met shortly after they moved in. I told them I like to play music so if I get too loud just let me know. No problem they said we like music too. They did in deed. It wasn't long after that that they would be standing outside my door when I played music so they could hear it better. They started coming buy and we enjoyed each others company and the music. One day one of the ladies mentioned she had a system and asked if I could come over to hook it up for her. She said she had all that stuff in there and didn't know how to connect what to what. I said sure I'd be glad to help just say when. She never said when. In the whole time she lived there she never hooked up her stereo.

Case # 2 was a maintenance worker that I became friendly with. After work he would stop by for a beer and we'd listen to some music he was fascinated with my equipment and told me he was interested in putting together a system. He said he had some things he had acquired after people moved out, but nothing was right like mine. So he asked me to show him where I got my equipment from. Well of course I attempted to introduce him to Emotiva. I have three pieces of Emo gear and thought it was a good place to start. I showed him what was available and explained he could start with a receiver instead of separates to save money. That he could get some bookshelf speakers and a source for not a lot of money and could even buy some used gear from lounge members. Well I got tired of asking him if he'd looked into Emotiva yet and having him look at me like what the hell is Emotiva.

Case # 3 My current neighbor. We're pretty good friends/neighbors we go grocery shopping together each month. He has a car I don't so he offered and it is convenient. So we were out shopping and he said he wanted me to come over to his place he said he had a pair of vintage floor standers, and he wasn't sure if he could hook them up, or were they worth anything, or should he sell them give them away or start new. Ok just let me know when. Nothing. I'm home everyday he's home everyday and nothing absolutely no follow up. Just leads me to think a lot of people really don't care. It's really not that important. Sure when were in his car he listens to smooth jazz but nothing but TV emanates from his window at home.

That brings me to my last point we here in the lounge are constantly seeking information about set ups, equipment repair, buying, selling, and or trading. I'm going to go out on a limb here and say that most of the people I know don't care if their equipment is even hooked up. Let alone getting something repaired, or replacing something that goes out. They tend to be the have one TV that's broke sitting on top of another TV that's broke next to the one that's working type. They all can appreciate my system but don't seem to care about having or maintaining a system of their own.

Open a stereo store today? Yea Right.

[garbulky]

jmasterj:
I think you are right. They don't care. Either they hear good sound and it just doesn't mean anything to them, or they have no clue why they would even want to bother with figuring out good sound etc.

My relatives live far away cut off from the modern world in the middle of nowhere. I'm talking about their source of entertainement is over the air tv. And they watch the heck out of it and liked musical shows like the voice.
So, I noticed they actually had quite a heck of a bookshelf system that could fill their space nicely.
So I made it very simple and set it up.
All they had to do was turn it on - and very nice sound would come from the tv.
If they wanted to listen to pandora or something while they worked - they could do that too. Simply plug the single wire into their iphone and switch the input to aux.

I set it up and we watched the voice and the place sounded fantastic! The sound was big. Everybody appeared to enjoy it.
I asked them what did you think of the sound?
One didn't notice any difference. THe other politely said that it was nice.
And that's about it. The system hasn't been turned on ever since.

I know another person my age who doesn't want to watch blu rays because they have to sit through more "ads" so she sticks with DVD's. I don't know if they wanted to press the skip or fast forward because the impression I got was that they just sat and watched all of it.

I agree I'm surprised there are ANY stereo stores in the country.

[dally]

This forum is evidence that there are at least SOME enthusiasts still out there. I do agree though, a brick and mortar startup would be a rough go.

[ansat]

Interesting tidbit - my local small dealer undercut the Internet by so much on the mythos st prices that I walked out with a pair st-l's for the same price as the cheapest authorized dealer internet prices for the ST. I think there is still is still room for some small dealers out there. But most I know now operate out of their home.

Tony

Sent from my SM-G900P

[aud]

Back in 2004 I overheard my brother in law in another room saying and I quote "Debbie (my wife's sister) told me Dave bought a surround sound processor for 2500 bucks, WHAT AN IDIOT! Doesn't he know you can get them for 500 bucks or less."

[DYohn]

Having done retail stereo and car audio would I do it again? NO *bleep*IN WAY! People do not want to pay what products cost at B&M retail. Internet pricing kills B&M. Service, installation and general knowledge only helps with a few customers - far too few to survive in my experience. People want you to do everything for them and still charge the same as (or beat) what they can find with Google, or they walk out. Consumer electronics retail is the short plank to bankruptcy. And that's really a shame.

[bluemeanies]

I can relate to both posts.
I have a pretty nice setup b/c I appreciate good sounding music and good sounding movies. I am the kind of geek (not computers) that whils watching a movie I like to experience the litte background sounds as much as I like to hear explosions. The breaking of a window or tea cup falling on the floor sounding as if it happen right there in my theater room still gives me goosebumps. I have the same experience with music whether I am streaming or listening to a disc. The picking of a guitar or the serenade of a violin.
All of this said my cousins and many people who have experienced my system have enjoyed what they see and hear but they lack the desire to do research or have the patience to put a quality sound system togather. No matter who I have had in my theater friends, family, or Comcast I am ALWAYS asked "well how much does something like this cost?" Then when you tell them an around or about number they get turned off. One of my family members asked me to put togather a sound system that was 5.1. They told me they did not want to spend what I had spent but wanted something that they would enjoy. I spent a few hours looking for equipment and came up with what I thought would be a decent sounding experience, at least one that that they would enjoy. I had to watch the money b/c they are CHEAP. I went to them with a figure and they said while they wanted to experience what I am listening to they only wanted to spend $7-$800.
My response...JESUS... Are you for real.
The solution home theater in a box from HG GREGGS FOR $750.00.
Beauty truly is in the eyes of the beholder. To them it was great. To me, I was embarrassed to hook it up.
This has happen at least two other times since I help my family and since then I promised myself I would not waste my time researching for people who are CHEAP.

Opening up a stereo store???
You can make a killing with CHEAP people.

[GreenKiwi]

I think that if you were in the right area... and actually had the audio gear as one part of the business, you might do ok. For instance, be a coffee shop / headphone shop. People can try out headphones/amps/music while drinking coffee etc.

[DYohn]

Oct 2, 2014 15:12:39 GMT -5 GreenKiwi said:

I think that if you were in the right area... and actually had the audio gear as one part of the business, you might do ok. For instance, be a coffee shop / headphone shop. People can try out headphones/amps/music while drinking coffee etc.

That's actually a pretty good idea...

[emovac]

There are some successful brick and mortar places, but some have altered there business plan to work online and in-store. Look at Saturday Audio Exchange in Chicago for example. Mostly internet, but they have limited store hours for walkins, and the owner specializes in product close outs. Authorized delaer for many brands. He makes a profit, but the customers can save a little too. The Best Buy type stores are hit or miss for selection, and knowledge, but most people here will know as least as much as the big box store employees.

I bought my Monitor Audio Gold References (7 channels) from Saturday Audio a few years ago (previous model) for half price. Original packaging. A couple of them had minor scratches. Work perfect.

[Boomzilla]

IMHO the only successful brick & mortar store that could possibly succeed in these times is one that does several important things:

1. Minimizes overhead costs (no luxury showrooms, no upscale shopping centers)

2. Offers trade-ins on used equipment (and/or buys used equipment outright) and

3. Provides repair service at reasonable rates

Do all three of these things, and you maybe (maybe) won't go bankrupt. It'll still be a labor of love, and one shouldn't expect to get rich...

[jmasterj]

It's sad. I live in Las Vegas arguably one of the greatest entertainment destinations on the planet. They frequently host the largest consumer electronics shows. So when Emotiva announced it was bringing Emotiva On The Road to Vegas I signed right up. I was looking forward to meeting Big Dan and company. I guess I was the only one because they canceled the Las Vegas trip and went to Los Angeles instead, due to lack of interest. People here gamble and drink first, eat second, and they might see a show. They don't seem to be interested in audio/video equipment. One would think with all the stars who live and perform here you might have a large high end equipment market. Go figure.

[garbulky]

Oct 2, 2014 15:12:20 GMT -5 bluemeanies said:

I can relate to both posts.
I have a pretty nice setup b/c I appreciate good sounding music and good sounding movies. I am the kind of geek (not computers) that whils watching a movie I like to experience the litte background sounds as much as I like to hear explosions. The breaking of a window or tea cup falling on the floor sounding as if it happen right there in my theater room still gives me goosebumps. I have the same experience with music whether I am streaming or listening to a disc. The picking of a guitar or the serenade of a violin.
All of this said my cousins and many people who have experienced my system have enjoyed what they see and hear but they lack the desire to do research or have the patience to put a quality sound system togather. No matter who I have had in my theater friends, family, or Comcast I am ALWAYS asked "well how much does something like this cost?" Then when you tell them an around or about number they get turned off. One of my family members asked me to put togather a sound system that was 5.1. They told me they did not want to spend what I had spent but wanted something that they would enjoy. I spent a few hours looking for equipment and came up with what I thought would be a decent sounding experience, at least one that that they would enjoy. I had to watch the money b/c they are CHEAP. I went to them with a figure and they said while they wanted to experience what I am listening to they only wanted to spend $7-$800.
My response...JESUS... Are you for real.
The solution home theater in a box from HG GREGGS FOR $750.00.
Beauty truly is in the eyes of the beholder. To them it was great. To me, I was embarrassed to hook it up.
This has happen at least two other times since I help my family and since then I promised myself I would not waste my time researching for people who are CHEAP.

Opening up a stereo store???
You can make a killing with CHEAP people.

Interesting. One thing I've always made sure is find out what they are willing to spend. And as usual, it's not enough.
I tried to help two friends. And man I went cheap cheap as possible. The results of all that time spent?
One bought a soundbar for a couple hundred. Wasn't bad but nothing compared to what I had.
The other bought a computer surround system for $70 (which btw does not do surround as you would expect it to. It takes stereo and makes it "surround".)
That's fine by me. They appeared really happy. xBut if that's what they were looking for, I don't know why they didn't just tell me that.

[Dark Ranger]

Although it's true that Big Box retailers and Internet Direct companies have siphoned away most of the business from the traditional Stereo Store, I believe there is another factor in play: the evolution of music itself. More precisely, the format of that music. Folks today are used to the convenience offered by digital music and digital devices. It's no longer necessary to amass a wall-sized cabinet of LPs, Laserdiscs, or even CDs. Similarly, it's no longer necessary to have a large stereo system to play it. Simply download the music from iTunes (or wherever) and dump it on an itty-bitty digital music player. Plug in the latest Beats by Dr. Dre headphones and you're golden.

<slight sarcasm> So who really needs a $2,000+ stereo system anymore? I mean, if you want better sound for music or movies, they have these things called "Soundbars" that will do everything you need for like $250. And if you really wanna go all out, pay the $9 or whatever for a movie ticket at the local cineplex. </slight sarcasm>

It really comes down to what one prioritizes. Average Joe & Jane Doe don't really care about good sound as long as they can hear the spoken dialog or whatever. Even if they acknowledge "good sound" from a friend's or family's system, spending "tons of money" to get that same performance isn't something they can justify. If it's not cheap, easy, and convenient, chances are many folks won't jump on board. I've had a few people ask me how much I paid for my components. They go all bug-eyed when I tell 'em. Suddenly that level of performance is no longer interesting to them...


Personally, I've always enjoyed good sound and wanted to have the best performance according to what I could afford. I remember going to the Corner Hi-Fi store and drooling for hours over all that cheddar. But I couldn't afford any of it. Even the Big Box stores were a stretch. I bought on sale or on clearance and enjoyed what I could. Years later, I was able to jump up the food chain when my income level increased. However, I still cannot afford the MSRP for brands like Parasound, B&W, Mark Levinson, ADA, McIntosh, Wilson Audio, and others. Luckily I found companies like Emotiva, Ascend Acoustics, and Schiit Audio. I do kinda feel bad about not supporting the local shops, but I couldn't support them in the first place due to cost. ID companies provide a level of performance to the common man that was unachievable in previous years and I think many of us here share a similar story.

[hemster]

There's only one B&M store left in my area. He operates out of a small office/room in a plaza off the beaten path to keep his costs down. Most of his sales are triggered off his email blasts and website. Although he is quite competitive, he's finding it hard to compete with ID companies. His "showroom" has been shrinking and he's sold off much of his gear at deeply discounted prices. Now he's running a consignment area just to scrape some coins together. This is a shame as the guy is very knowledgeable and provides excellent service. As has been mentioned, people are going mostly for soundbars or HTiB or low-mid receivers for their setups. I doubt we'll see a resurgence of stereo stores in the U.S.

[kse]

Oct 2, 2014 15:00:10 GMT -5 ansat said:

Interesting tidbit - my local small dealer undercut the Internet by so much on the mythos st prices that I walked out with a pair st-l's for the same price as the cheapest authorized dealer internet prices for the ST. I think there is still is still room for some small dealers out there. But most I know now operate out of their home.

Tony

Sent from my SM-G900P

Tony,

Curious where this dealer is located. Feel to reply via-PM if you'd prefer.

Thx.

[The Mad Norseman]

^Dark Ranger got it right, people just don't care that much about good sound anymore, and sound bars are usually enough to satisfy (sadly) - not like when I was getting into music BIG TIME in the 1970s.
Nowadays (he says sounding old...), with the current crop of younger 'music enthusiasts' - convenience trumps quality at every turn.
Sure there are exceptions (most of us for example), but we're just that - exceptions.

[1960broookwood]

Got a couple of local guys paying the bills by selling turntables and tube gear out of the corner of the local record shop in a metro area of just over a million people . Low key and aimed at the empty nesters with disposable income. They do repairs and take vintage gear in on trade.

www.facebook.com/pages/Wayback-Audio/292919097503394

[jmasterj]

In this thread we've covered a number of reasons why opening a stereo store might not be a good decision.

In retrospect I have to accept my part of the blame for what I consider the loss of an institution that was the stereo store, and the record store as well for that matter. The older I get the less I stop and shop. When I was young it was such a part of my existence. I remember on payday spending my entire lunch break in the record shop looking at and purchasing albums. Then I'd go back to work full of anticipation I couldn't wait to get home to play them. I had more than one record store that I would shop at too. It was definitely a stop and shop place when ever I went to the mall.

I eagerly awaited the next visit to the stereo store back then to see the newest equipment. Just being able to go into the store and physically seeing the equipment there with all the different manufactures gear side by side was enough to keep me stoked. Even if I couldn't hear or audition it, it still fueled the fire. Puts me in mind of the folks here in the lounge waiting on the next product to be released from Dan and Lonnie.

Today I must confess my entire system minus the LCD TV, Blu-Ray DVD player, and rack were purchased on line. All my music is as well. I haven't been in a record or stereo store in so many years. Just before writing this post I received notice that the Spinners CD I ordered yesterday was shipped. I already downloaded the MP3 to listen to till it arrives. Speaking of that I'll order Cheek to Cheek Lady GaGa and Tony Bennett tomorrow. So the real reason I shouldn't open a stereo store today is because of people like me who have fallen slave to convenience. Yes I still love the music, and I still covet the equipment. I'm just too darn lazy to go the store to buy it when I can just set here in front of the keyboard push a few buttons and wait for it to be delivered. Now that's the truth...

[Gary Cook]

In the 70's we had 5 B&M hifi stores in my area. They only sold hifi hardware, TT's, amps, reel to reel decks, tuners, speakers etc. The record store was owned by someone else and down the road a ways, never close by.
In the 80's we had 7 stores, CD's were a popular buy and their sales propped up the hardware area.
In the 90's we had 3, big screen TV's, satellite dishes and DVD's paid the rent so the hardware sales could continue.
In the 00's we had 1, installation of HT's was a big business, plasma and projectors with the hifi gear in a little corner.
In the 10's they are all gone. You buy your gear online and a guy in a van comes around and sets it up for you, he also does pay TV installs and servicing which is probably his primary income source.


Cheers
Gary