How difficult is it to start a hi end audio store?

[Huntindawg1962]

I know the question is only hypothetical so this response is in the same thought.

If it were me considering it, the first thing I would do is get a job at some local consumer grade retailer for a year or so to get the full flavor of "retail" rather than specific to "high end audio retail." Get exposed to the great available market to see what it takes to thrive when pricing alone is the issue. High end people are also price sensitive.

There are really two components that go in play - the specific nature of the high end audio (market limiting) and then the rest of the distractions of any retail operation, and then also dealing with the presence of online availability of everything - which one store alone likely won't be able to stock enough due to cash flow reasons. People "kicking the tires" at your place with no intention of buying from YOU because they get a better deal online and the same delivery timing (unless you stock everything.) Impulse buyers looking for instant gratification (take home today) diminish a lot as the price tag goes up.

Only then would I assess the feasibility of opening such a specific boutique style operation.

 

[Joey_V]

I know the question is only hypothetical so this response is in the same thought.

If it were me considering it, the first thing I would do is get a job at some local consumer grade retailer for a year or so to get the full flavor of "retail" rather than specific to "high end audio retail." Get exposed to the great available market to see what it takes to thrive when pricing alone is the issue. High end people are also price sensitive.

There are really two components that go in play - the specific nature of the high end audio (market limiting) and then the rest of the distractions of any retail operation, and then also dealing with the presence of online availability of everything - which one store alone likely won't be able to stock enough due to cash flow reasons. People "kicking the tires" at your place with no intention of buying from YOU because they get a better deal online and the same delivery timing (unless you stock everything.) Impulse buyers looking for instant gratification (take home today) diminish a lot as the price tag goes up.

Only then would I assess the feasibility of opening such a specific boutique style operation.

Yes, first hand experience working in a retail store would be invaluable to starting the business. However, doing so is a financial pitfall as well. If I were to work in an audio store, I would have to cut hours in my current job. If I did that, it would cost me a significant amount and I don't think that would work well with the wife. LOL.. but I agree, that would be a good way to learn the ropes.

 

[Huntindawg1962]

It's a neat pondering topic.

I often mused about working, even part time, in a high end audio/video store or even some place like a Cabelas. Then I realized that my net paycheck would likely be $0 with all of the net going right back in employee purchases . Others would end up leaving it all at the golf supply stores with all the latest gear. I watched this happen with a relative that liked animals and opened a retail pet store. Not a good reason to do so and in the end, it busted. But not before sucking up a lot of personal assets. The "smarts" for running a business and assessing consumers markets/competition are way different than a passion for something. These things always sort themselves out.

So you could finance such an enterprise but also "hire" someone that had the retail management experience to make it go. Not the same as what you initially talked about though.

There are things in life we really enjoy and think "hey, what if I could do this for a living?" Then it becomes, well, just work, and we find ourselves out of our element. Like someone else said, "do what you do for income and just enjoy the things you do."

 

[timm]

Here is thought 251...... what about a model like this (and I'm not saying it would work... but thought of it because of a scenario I have going on)..... I have a dealer--- he is an authorized dealer for a particular manufacturer.... He doesn't carry everything... However, I want to buy what he doesn't carry - so I am in the same shape as Joey here - except this guy is brick and mortar......and I would like to buy from him - because I like him. What about at point of sale - he gives me a 'deal' on the product he doesn't carry... I in turn agree to allow auditions of the product in my home..... As a dealer here, he could continue to give the guy who he gave a deal a finders fee for those who go to listen to his setup and buy... or he could just give me a deal on the original sale with this agreement in place.... It limits the dealer's inventory costs - but, now he has multiple listening rooms for product at his finger tips based on appointment only with the individual who purchased the product.... Of couse as the dealer - he could go and see if the room he wanted to send someone to was adequate etc... Just some thoughts there.....

The dealer basically creates a 'network of listening rooms'....

 

[Joey_V]

Here is thought 251...... what about a model like this (and I'm not saying it would work... but thought of it because of a scenario I have going on)..... I have a dealer--- he is an authorized dealer for a particular manufacturer.... He doesn't carry everything... However, I want to buy what he doesn't carry - so I am in the same shape as Joey here - except this guy is brick and mortar......and I would like to buy from him - because I like him. What about at point of sale - he gives me a 'deal' on the product he doesn't carry... I in turn agree to allow auditions of the product in my home..... As a dealer here, he could continue to give the guy who he gave a deal a finders fee for those who go to listen to his setup and buy... or he could just give me a deal on the original sale with this agreement in place.... It limits the dealer's inventory costs - but, now he has multiple listening rooms for product at his finger tips based on appointment only with the individual who purchased the product.... Of couse as the dealer - he could go and see if the room he wanted to send someone to was adequate etc... Just some thoughts there.....

The dealer basically creates a 'network of listening rooms'....

we're talking about magnepans aren't we, Tim? hehehhe...

 

[projectormovielover]

Joey I say go for it, sure you can cover the high end but you can also sell on line, trade in used gear and do HT installs. Follow your dreams bud as life is too short. Here is another thing you can do, start an audiophile club at the store and have everyone come in the last tuesday of every month at night for the gathering. You could also later on have gatherings at all your customers homes that could host the monthly event and feature gear you sold em.

 

[Bernard]

Joey, you're relatively new to the workforce, so I say concentrate on your job and forget about any side business until you are well-established.

This is a variant of what a professor of mine said to me right after I graduated, started working, and was considering taking grad courses. He told me the courses could wait.

 

[timm]

we're talking about magnepans aren't we, Tim? hehehhe...

Uhhh....ummmm.... Maybe?? .

 

[projectormovielover]

Joey, you're relatively new to the workforce, so I say concentrate on your job and forget about any side business until you are well-established.

This is a variant of what a professor of mine said to me right after I graduated, started working, and was considering taking grad courses. He told me the courses could wait.

Joey could always go back to his high profile job if things dont workout though.

 

[Huntindawg1962]

Good advice from the professor. Nothing teaches as well as real life experience.

Projectormovielover brings up a third aspect. Doing the installs component means that not only do you have to understand the gear you sell AND retail management, but installation and room treatments along with local codes and reading the customer expectations. All this to do some high end $50K install (hoping to make $3-5K on the deal against some internet retailer with low mark-ups). Running wires and hanging stuff in homes that are not always cookie-cutter designs and someone wanting the latest AURA experience. Then the people you install for don't experience that imagined level they expect?

Ouch