life without audio dealers

After reading these posts I would like to add that if the manufacturer became the primary source of sales for the audiophile/customer, then we would all lose out. The reasons are several, first off, the direct sales will have to also rely on stocking merchandise or the one off specialty designed products where the lead times are long already may result in even longer waits for such products because the direct seller must now cater to more people, thereby increasing workforce to ramp up production or shipment and delivery. These come with added costs to the company.

I think the demographic of people who would go to the dealer has changed due to the internet and people becoming more savvy way to spend their money. This does not preclude them from wanting to spend their money. Suppose a manufacturer states their is only one direct sale point of contact, then what would people do to audition products across the states. I as the direct seller now have to arrange to box, ship and insure a product to some other state to allow someone to demo a product (in which case I support home demos 100%), however I now have incurred an extra cost, these costs will go up exponentially as more people desire to listen to products at home. I will in effect have to track more products coming and going plus deal with the insurance claims. Some manufacturers that are small to begin with will not be able to support this financially while the larger ones will. So we will see more mass market products able to be demoed easier versus the small manufacturer production base. I personally do not want to wait long to demo products either, however, we must realize, that we cannot influence small manufacturers to simply drop their direct dealer network. I have been dealing with the same dealer for almost 10 years and now have a reputation with both the dealer and manufacturer as I have some unique requests to experiment using the equipment I have purchased and going to trade shows and talking with the manufacturer directly to tell them about their products. This has led me to be on their "list" of allowed customers to do home demo's with their high end equipment. But, I have to wait another 2 months for the home demo equipment to make its round to me because other people are also home doing the home demo on the same product. This is a very small manufacturer and they do not mass produce, but what they do is in great demand and people are willing to wait to get a demo. If they were to build more home demo products, this would take away from the availability of off the shelf products they already sell or add costs to production to hire new people. It is a tradeoff. So direct sales do work, but the smaller companies will not be able to support the demand of all customers leaving some people just as frustrated as with a dealer network.

Just a few more facts about small businesses, that could effect local communities if they are active participants in events, programs or local hires providing jobs:

#1 Small Business is America’s No. 1 Job Creator

Small businesses represent 99.7 percent of all employer firms, employ half of all private sector employees and pay 45 percent of total U.S. private payroll. Small business has generated 60 to 80 percent of net new jobs annually over the last decade. (U.S. Small Business Administration, Office of Advocacy)

#2 Small Business is a loud voice in Public Affairs and Politics

Disproportionately large percentages of small-business owners are registered to vote (95%), usually do vote (84%), and run for elective office (3%). (NFIB National Small Business Poll: Political Participation)

#3 Small Business is a Steady Part of the American Work Force…and will continue to be.

Forty-six (46) percent of small employers intend to never fully retire. Another 23 percent will retire at 65 or older with half that number retiring at 70 or older. Sixty (60) percent of those intending full retirement at some point expect to phase-out, rather than to retire abruptly. (NFIB National Small Business Poll: Retirement)

#4 Small Business Contributes to Local Communities

Ninety-one (91) percent of small employers (small-business owners) contributed to their community in the last year through volunteering, in-kind contributions, and/or direct cash donations. About 41 percent contributed all three ways. The estimated average value of contributions is $6,600 per small employer, contributing and not, for a total of roughly $40 billion . (NFIB National Small Business Poll: Contributions to Community)

I really cannot see a good business model without the benefit of the small business. If we were to have only direct sales, then we would displace a viable workforce, adding unemployment, I know increasing sales directly implies that we will add or create jobs at the manufacturer, but tell that to someone in the middle of nowhere where they depended on the income for survival. That business would surely go under and effect the some people, while the manufacturer would likely increase work force lets say in Washington State, far away from the dealer that was.

Enough of my thoughts….
Happy New Year,
Audioquest4life

there is a difference between infoirm and recommend.

the inform is like the "what". it tells the reader what the product is doing in a stereo system. what is the relevance of then adding : "i like what the product is doing". a reader can make his own decision if he is told how a product performs.

it is like the expression "you report, i'll decide".

with information, a decision can be made. the indication of preference does not inform, rather it persuades.

i would rather have the reader make up his mind than try to influence him/her. read my reviews and tell me what you think. you can read them at audiophilia.com .

the most important function of a dealer is making the product available for sale. it would seem that this should be sufficient for the educated consumer. also provide an opportunity for home audition. a dealer needs to have one demo of each product he carries. withn such a model, i can see the viability of dealers.

Mrtennis, if the audiophile world were to devolve into small manufacturers directly marketing their products, then how many electrostatic speakers do you think would be on the market? Small may be beautiful but it's not particularly economically efficient nor do truly small companies spend much on R&D. The end result could be higher prices for less innovative products.

The music business may offer insight into what you propose. The major record labels have basically withdrawn from new artist development which leaves new bands with the problem of how to get their music heard. The internet, constant touring, OST or TV placements, video games, etc. are all being used. But from the consumers' POV how does one shift through all the media for something they would like? The record labels once served as a filter for getting the best, well at least the best commercially viable, music to the public. The audio dealer also serves such a function. In a world with hundreds of audio manufacturers it's a valuable function.

Many already do experience "life without audio dealers" - it would appear that the vast majority of people on A-gon recount how they do not have access to a good dealer, either due to geographic location, or lack of quality in the dealers that do exist.

I think the majority of us would welcome the opportunity to have a full-service, knowledgeable dealer with whom to develop an ongoing relationship with. If we take the somewhat idealized version of dealers that some recount, this dealer would know us, would know our system and preferences, and would save us time and money by being able to direct our attentions and $$ to the place they would most benefit our quest, even if, occassionally, that place wasn't a place that they profited from.

I don't understand why the industry seems to be retracting its business model instead of modifying it. It seems much harder now to get in-home auditions, to get trade-up policies, to, in some cases, even get a dealer's attention. Pricing, for at least the upper-end, seems to have no boundary, and the dealers are probably more dependent on the large margins than they've ever been.

I used to live in Lawrence, KS, home of Kief's. It's a college town, so they dealt with tire-kickers in spades. Even back then, they had a three-tiered pricing structure. There was full service - advice, home demo, full support, etc. - for a small discount off of retail. There was "partial service" - advice, home demo, 30-days direct support, after which you dealt with the manufacturer directly, for a larger discount off of retail. Then there was mail order - they'd get the unit in, but as they said - if it comes in two halves, you own both halves. This was for a competitive mail order price.

I don't know why some version of this type of tiered model couldn't work for a modern dealer, something that makes the service more explicitly paid for by the customer.

Mrtennis wrote:

"i see no evidence that trial and error without a dealer's assistance is any less effective than getting an opinion from an audio dealer.

"only the consumer can decide his or her preferences. how does one learn? through listening. from a position of ignorance, one listens and then decides that a certain presentation is what he or she likes."

Duke replies:

At least we agree that experience is necessary to deciding what one's preference is. Assuming the person has access to high-end audio dealerships, I maintain that visiting dealers and listening to what they have on display is usually the fastest and most efficient way to gain such experience. It is not as thorough as an in-home audition, but will narrow down the field of contenders for said in-home auditions.

Mrtennis, what do you propose as the alternative way to gain sufficient experience to decide which presentation is preferred?