'In Home Dealers' are the future?


Seems there is growing trend for various distributors to be doing business with 'in home dealers'. These appear to be audio hobbyist that are selling factory product from their homes, at 20 to 25 percent off list. Certainly not fair to the dealer network, but it seems to move additional product, especially at these soft purchasing times. Your opinion?
buconero117
I was an "in home" dealer in Knoxville, Tenn. for 20 years, 74-94. I didn't hurt any storefronts because none of them were interested in selling high end. I had most of the high end brands current during that period; I didn't survive by discounting but by giving good service. I would give a better price on a complete system or overvalue trade ins but all the stores I know do that. All the brands I carry have a 40% off dealer price , I have seen some "new in box" items cheaper than my cost so the question is how do home dealers survive in this economy? I am in Louisville , Ky. where there are Home Theater dealers but no audio ones save me. I get inquires about selling outside the local area but don't do it on new equipment. I invite anyone who thinks it is a good way to make money to try it. If you want to demo equipment at a serious, not top end, level be prepared to invest , say, $30,000 in stock. this is probably very low. I have spent on the order of $12,000 on new stock and I already had an inventory that would run 3 or 4 times that to purchase now. If you think you can operate on a 15% mark up let me know and I'll close up and buy from you. If you are not interested in meeting other audiophiles and the challenge of setting up systems that reflect the taste of your customers forget about it.
TVAD
It is true. I always went to a dealer who gave me a 20% discount or more. I can't in fairness to him risk broadcasting it because his product lines may insist that he only sell at full retail. An example from the jewelry business is Rolex watches not the excellent fakes but the real ones. If you are found discounting they simply pull the plug unless they say "dump your remaining emporor line" we are intrducing the economo-Rolex it's Swiss made from all the watches we can't sell, beside they were parts made elsewhere..
I actually know that no one ever discounted JM Focal when I got mine. Now I bet you could find some sealed in box opened to show you and sold as demos.
It's clear that I have been either buying from the wrong dealers, or I have been a "lay down". I've not pressed for deeper discounts because the few items I have purchased new were offered with in-home trials, so I thought the ability to hear the products was worth the extra smaller discount.

Funny, because I'm just the opposite when buying a car.
I expect an 'In Home Dealer' to give me a 30-40% discount off list price, and allow me a free in home audition. I've had it, but I can't say from too many 'dealers'. I do know the 'In Home Dealer' that I will go to in the future though, the same one that I've dealt with in the past.

I really don't see how B&M stores can compete....and they do not in my area.

Cheers,
John
I know a guy that does in home audio. He carries all the esoteric brands. He is really struggling in this economy. He will let you take equipment home for a few days to try it out. The most discount he will do is 10%. I only know of one dealer that offers 20% off. He owns his own building so he has low overhead. Most other dealers want full list if it is a current product. If it is discontinued or demo I have seen up to 40% off.