What makes a good hi-fi Dealer.

lbr ,do you understand how distribution works and the costs involved if you did i don't think you would be so flippant . And profiteering ,very hard thing to do when you take in the costs involved for every one . No one who has commented so far has made any ref to those who wear both hats ,distributor and retailer and who keep products for themselves alone(you can charge them with making extra profit ,as they have a double margin to work with)

As to Living Voice this company is owned by/has dealer involvement .So Definitive Audio who are i think behind Living Voice ,therefore make a double margin when they sell it or Shadow Audio on Micromega,Jas audio etc or Sound Of Music on Bat,Advantage,Boulder etc(nothing wrong with this as they have all the costs as a distributor and then must give the final dealer a margin too). Now if any of them only sold these through there shops and the retail cost was still pound to dollar ,then that would be an issue as a lower retail price could be allowed .

What about Cambridge audio,made by and owned by Richer Sounds .Not available for sale in UK shops but distributed outside UK. Is that fair ?

No one wants to pay a lot ,but in order for the current system to work(not perfect) this is what happens but when costs are removed from day to day business you are doing very/very well to have a 10% net turn over at years end and most are working with less . Is this Profiteering i think not .

Regards D Louth
 
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Hi D Louth!

It's very interesting to hear from a dealer's perspective, and I do have sympathy for dealers who are finding declining hifi sales difficult to deal with in today's economic climate.

In my own industry (which also has steadily declining margins), we now work from home with a virtual office for incoming calls/paperwork etc.

The harsh truth, is that high prices of high street locations, staff wages, bills etc - mean a high price for hifi. If a dealer is struggling to manage in their existing location with their existing business model, then clearly it has to change.

I think the way forward for such dealers is to re-examine the marketplace, and how they can fit in it..

Just my 2p..
 
Markus Sauer said:
Not true for US brands.
A US manufacturer will generally sell to his European distributor for much the same price as he sells to his dealers. Understandable if you remember that a European distributor will most probably take less units than a good US retailer in a large city.
Click to expand...

not sure about this, a year ago i inquired to buy (just) a pair of very respected US speakers direct from a manufacturer. i was immediatelly offered an ex-factory price, 45% off the US retail. i would be surprised to see that someone who is buying (say) 100 pairs of the same would not get an additional discount.

for more accurate conclusions i feel we are lacking several information, the most important being the real export price of the US gear. otherwise i have my own thoughts why macintosh 2301 amp, which retails at $ 25,000 in the US, costs 17000E in my country and 25000E in germany (before haggling markus mentions).
 

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