'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
How does one become a "local dealer?" I wanted to at one time, but it is not something I could do now...so if I could get 50k together I could start my own home based dealership?
I get very little above 10% discount at B&M. I once tried to negotiate a +10% with the store manager at a local B&M, got totally berated in front of other customers. During this negotiating I offered to pay more than my other sources for same equipment. Needless to say, I've never done business with them since. And this is after paying near list for several items previously. Too bad for them, they could have had subsequent sales to me.

The other problem with buying from local outlets is state sales taxes, 6% here, local B&M and home based outlets suffer greatly here! I bet many sell more out of state than in state.
Sns - Good point about sales tax. Shipping on a $3000 phono cartridge is maybe $200. Shipping from out of state is probably more like $10.
The above is an extreme example but one that applies to a lesser degree with most other purchases.
6% sales tax sounds like a bargain. In Los Angeles, it will soon be 9.25%.
Bearotti, maybe take that $50k and multiply by 4 then find dealers you wish to carry that dont already have a market presence in your area then figure out what sort of inventory or product minimum representation they demand you carry, multiply that by several makers of gear your likely going to need then factor in not making money for atleast 1 yr........add marketing expense, subtract what it will do to your relationship if you have one then divide that by the rooms in your home you will give up to the business and finally subtract thr enjoyment you will loose by turning a hobby into a business. The answer is always 42 correct?