How Do Hi Fi Companies Stay in Business?

[1KW]

I live in one of the most densely populated area of the country and there are almost no stores one can go to buy Hi Fi equipment and the ones that do exist do not have very much inventory. There is one store in Lambertville, NJ. A few in Philadelphia and Delaware area. I’m not sure how Hi Fi is going to survive with this trend and the fact that most audiophiles are in there 50’s and up in age. I know Ivan is obviously doing well with internet sales, speakers however are harder to decide on without first hearing them

[Masterlu]

David... it is a real struggle today for most Audio Businesses. I know of two different stores this past week (both friends of mine) that closed their doors for good.

[Mikado463]

Consumer audio shows, internet forums, audio magazines (print/online) and then Ivan and others. That pretty much sums it up, no different than Sears going out of business and being replaced by Amazon ...........

[joey_v]

Kinda our own doing too... used market eats away at new retail and BM

[W9TR]

I've had variable experiences with hi-fi retailers over the 40+ years I've enjoyed the hobby. Some good, most not so much. I think the current situation is at least partially self-inflicted by the retailers themselves.

[Weirdcuba]

Just not sure where the growth comes from unless people can hear and experience good sound. Tough cycle.

[Bar81]

A lot don’t unfortunately. I’ve seen a move to appointments by most dealers I work with which I think is a great thing in order for dealers not to have their time wasted and to ensure they spend time with paying customers who are serious about auditioning and potentially buying a piece. It has definitely made it so that I thoroughly research a component and am ready to buy before I audition it and that’s definitely a good thing.

On the other hand, the one consistent complaint I have is the lack of components on the show floor. I’m not going to buy an expensive piece based on a review or a dealer’s say so typically (to be fair, I bought my speakers having never auditioned them but I had the next speaker in the range below it so I generally felt I knew what I was getting - although that turned out to be wrong in many ways, but ultimately got them to work even better than I had expected but I don’t think I’ll ever do that again).

[FreddieFerric]

We're down to just one serious audio dealer in my area. The rise of the internet no doubt has savaged the bricks and mortar business model. What I never understood is why these same dealers haven't embraced the web culture and started robust websites of their own. And as to manufacturers that still refuse to allow their product to be sold via the internet....Why? If you have a dealer network, why not allow those dealers to sell online. At least within their particular geographical area. To me, it's like strangling yourself to death. The handwriting is on the wall, but you stubbornly refuse to acknowledge it.

I wouldn't give up on the younger generation just yet. I was into hi-fi gear when I was a young man. Now that I've aged my tastes have turned to gear that more resembles fine musical instruments. There is a very big difference between the two.

Time will tell.

[Humbuster]

1. High margins

2. Well healed customers.

[metaphacts]

Originally Posted by 1KW

I live in one of the most densely populated area of the country and there are almost no stores one can go to buy Hi Fi equipment and the ones that do exist do not have very much inventory. There is one store in Lambertville, NJ. A few in Philadelphia and Delaware area. I’m not sure how Hi Fi is going to survive with this trend and the fact that most audiophiles are in there 50’s and up in age. I know Ivan is obviously doing well with internet sales, speakers however are harder to decide on without first hearing them

David, this is a great thread. Sitting back and reading the responses gives great insight on how high end's core constituency views our industry. I have some definite thoughts - those who say we brought it upon ourselves have certainly defined the starting point, imo, some 25-30 years ago. But as manufacturers, we need to listen much more than talk. These threads give that opportunity.

Thanks.
Bill