If you were a new dealer......

[emillika]

What product lines would you carry?
What would make you different than the 'guys' down the street?
Would you open up in a retail zone (strip mall) or more like a tech center (single story building with cheaper rent and less traffic)?
What services would you offer?
What policies have you seen from dealers that you have enjoyed doing business with?

As you might have guessed I am contemplating a career change from a Sr level IT position to owner of a home theater dealer/designer. I currently have a good job that pays well with multi-national conglomerate. I am at a point in my life were I want to 'build something' and quite frankly I don't trust corporate America anymore.

I hope you don't mind the questions... they will be seriously listened to and hopefully sometime in the near future you can walk into the store and see and feel something special.

Thanks.

Elmer

[RedStep]

You may want to become a high-end retailer, but keep in mind that some of the good and less expensive equiptment will move faster. And you have to move product to make money!!! ( you'll move one Jeff Rowland Concerto 2 to 20 Denon AVR 5803)

I would think it wise to carry products that don't compete directly with each other. For example why would you carry B&K and Rotel...Both are great mid-priced high end stuff. Better to carry B&K and Yamaha or Rotel and Denon or Pioneer. And then I'm sure they have territory requirements.

And you would be foolish not to offer design and installation. Not only does the general consumer not know what they want, but they dont know how to hook it up...I had an A/V installer tell me of a pro athelete that spent over 100K on a system and got Yamaha and Klipsch 8O I believe 70% of the bill was installation, I would love to know the GP on that job.

I believe that product is less important and service and attitude are essential. Carry equiptment with a good reputation and have people that care and you'll be successful.




RedStep
We are truly a product of the decisions we make

[WallaceBW]

What product lines would you carry?
From a business standpoint I would have to say that you want to keep stock from companies that are above those carried by the big chains (Buest buy, Circuit City, etc) but are still attainable to the common middle-class worker and offer real value for dollar (Rotel, Denon, etc). It also couldn't hurt to have agreements with the more elitist companies such that you are a authorized reseller but are not required to maintain stock (But try to carry a high end line or two)... EMPLOYEE TRAINING... Ensure your sales reps know at least most of the gear that they are selling and that at anygiven time someone is available to answer questions about all products you have on display. (I hate walking into a store with a detailed question and teaching the sales rep about his product instead of recieving an answer.


What would make you different than the 'guys' down the street?
Try to forget profit-margin when making a sale... I.E. don't push monster cable on a customer that just bought Mark Levenson (sp?) equipment. Instead try to recomend the best 'matched' accessories that you can supply. If you know of a better product to fit their needs that you don't carry tell them about it and (if you know) where to find it.... You will see them again


Would you open up in a retail zone (strip mall) or more like a tech center (single story building with cheaper rent and less traffic)?
With speciality shops like HT gear visability isn't the most importantfactor. That being said however, try to make your location easy to find and the directions easy to follow... If you have to make 10 turns off the last major road/highway than people may not think it's worth the effort. Also try to situate your space between metropolitian area (if possible) but not in either (price constraints). I.E. Washington, DC and Baltimore, MD... Somewhere in the middle would be cheaper and afford you the highest customer base.

What services would you offer?
Delivery, Instalation, Relocation (a forgotten market -- people move and there systems do too), Calabration, Design (system and room -- contract an archetect if necessary). Offer discounts to routine customers even if they dont buy your best gear. It will help you keep customers and earn new ones

What policies have you seen from dealers that you have enjoyed doing business with?
Easy and reasonable return policy, Upgrade assurance (trade-up plan -- even if you charge for it) and loaner equipment (when a unit is out for repair)

Regards from a fellow IT person,
Brian

[emillika]

Thanks for all the constructive feedback. If I thought there was already an existing store/company in the area that provided AAA customer service and good product at a good price I would not be wasting my time on this idea.

Does anyone have a truly outstanding A/V store near them that they recommend I visit? I am not adverse to travel so don't let location stop you from suggesting something.

I am also curious if anyone has heard of, or dealt with, Lifestyle Technologies. They have a presence in Atlanta, in North and South Carolina, Maryland, Houston and Dallas.

I also understand that the design/installation end of the business is truly the bread and butter... very similiar business model to the information technology companies I have worked for in the past. Buying a 100 pc's or routers is fairly cheap compared to the consulting, installation, administration and maintenance costs.

Thanks again,

Elmer

[David Meek]

As you might have guessed I am contemplating a career change from a Sr level IT position to owner of a home theater dealer/designer. I currently have a good job that pays well with multi-national conglomerate. I am at a point in my life were I want to 'build something' and quite frankly I don't trust corporate America anymore.

Elmer, I completely identify with you! I'm a senior IT person (Oracle DBA, UNIX sys admin, et al) and don't trust or believe anymore, either.

I've been contemplating something like this from the room/environment standpoint (not so much the componentry) for several years. Some general thoughts - apologies for any "corporate speak":

1) Be customer oriented. Without a good reputation from customers your business will die.

2) Identify your market availability. Try to carry lines of equipment that aren't saturated in your area. Surprisingly enough, in Houston - the 4th largest city in America, we only have one true high-end store to go along with Tweeter and Home Theater. Lots of potential there!

3) Training. A knowledgable low-key sales staff is critical. If they don't know something, it's a relief to hear them say so. An honest desire to learn more is much more tolerable than a push onward with BS approach. Pushy, or "I read the sales brochure" type of approaches also turn customers off as I'm sure you know. Training doesn't need to be by the manufacturers initially. At first, have 1/2 hour or 1 hour sessions every other day or so on your equipment, layouts, interaction variables (a bright speaker with a bright amp is bad type thing). Basically get your staff and yourself in tune with your lines of equipment and how they respond to possible combinations.

4) Initially, don't spend a bazillion dollars on your store's appearance i.e. Home Theater, but do spend enough to create a good sonic arrangement for your displays - unlike Tweeter.

5) Talk with dealers in locations you won't be working in. Get a good idea of the returns you can expect on your investment. It may not be as much as you think in today's economic environment.

6) Line up installers, room designers, cabinet makers, et al before you open. Looking for those skills after you open can build in a delay that a customer at that level may be unwilling to tolerate.

Hope this helps a bit. Best of luck and welcome to the Guide! :T




David - HTGuide flunky
Our "Theater"
Our DVDs on DVD Tracker

[Lex]

Dangit, I KNOW I posted a long message here last night, and yet it's gone. Strange.

Let's see if I can remember most of what I said.

It is bold of you to want to make this life/career change. I commend you for that, and I think I understand why you want to do it. After all, I am in IT as well for my day job currently. Just biding my time until I get out of it. Just use caution about risking the entire farm. Starting any small business is not easy. Especially at first. Plan for your contingencies, and be realistic about goals and expectations. There are many factors that play into the equation of whether you can be a success or not. Market factors, demand, competition, location, products, service, hours, dedication, etc... So, there's no magic formula for success, except to work hard and smart.

Be realistic about this economy. It's no picnic at this point, making a startup that much more difficult. Select products wisely. and as David said, presentation is key. As to location, you need good traffic, not necessarily foot traffic,but car traffic in the area, so that people see you, and don't depend on hearing or seeing an ad, or finding you in the yellow pages. Though the latter two are definitely useful.

I know someone working to get his doors open at a new shop. Maybe he could talk to you sometime. might help.

Last but not least, MatrixAV.US products come to mind as something different, to attract customers. :B

Lex




Cable Guy DVD Collection

[Kevin P]

Last but not least, MatrixAV.US products come to mind as something different, to attract customers. :B

It's funny, when I first saw this thread, that was the first thing to come to mind. If I were to open a store, I'd be suggesting (read: begging and pleading) to Lex to offer retail-packaged versions of his products! It would certainly be a better value than the Monster stuff that the other stores around here carry.

As for other stuff, I'd probably carry the major brands to attract people (Sony, Yamaha, etc), and some higher-end stuff, Rotel, Parasound, that sort of thing. And maybe even throw in some more unusual pieces (tube preamps/amps, etc.) to attract that crowd (no, really so I can play with the stuff :B )

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site

[dsmith]

No doubt many audiophiles think about having their own store, but most sober up and come to their senses.

Just kidding. Go for it.

I was talking to the manager at the local Sound Advice and he said they make their money off the mass market stuff (Sony, Yamaha, etc.) but they also carry mid to high end stuff, including B&K, Krell, Martin Logan, and now Monitor speakers. They previously sold B&W's line but had a falling out when they were bought out by Tweeter.

I wish someone would open a local store and offer brands I would love to try but can't get, such as Anthem, Parasound, Classe, Lexicon, Aragon, etc. My biggest frustration is trying to get hold of a high quality product that is not available in my area and most manufacturers not allowing mail order, except maybe for demos. The reality is such manufacturers are severly limiting their market, especially in this day of e-commerce.

Anyway, if you do want to have your own store, I think the biggest issue with regard to brands is to find those that have good customer support. They will bring your customers back and help boost your reputation.

Good luck.

dsmith