I'm in the other thread as well, but with this statement posted in this thread perhaps you elaborate on this - in comparison to every other retail sales business - what is so different about consumer electronics?
How is it completely different than say - home improvement contracting, automotive customization & performance tuning, or retail computer sales and consulting... I say that simply because I've either worked with, done extensive business with, or run my own business for years as - all 3 of these.
In some ways it is not, but in other ways it can be tremendously different. One of the biggies is that with CE you have ample online resources for research. A HUGE headache that I find, even though I work for a $30,000,000 a year company, is that the prices many people may find online is often CHEAPER than our cost. Think about that! I can't compete with online pricing, almost nobody can. The big box stores are drawing on BILLIONS in sales to drive prices down, to compete against online sellers marking things up perhaps just a few percentage points.
I can't buy lumber online and save cash. I can buy a PC online and save some cash, but PCs exclusive shops are more rare than they were in the 90's for sure as they've run into the same thing I think. Heck, dead on the same I would say. Home improvement contracting is more time and labor based for some, and the bigger places just set fixed fees. I'm not sure that is different either. Auto shops? Heck, I don't know. I would say that they run a lot of stuff by convenience. They charge $10 for oil that costs them $1 then $20 for labor to change it out. It's a convenience thing.
One thing I can say is that when someone spends $2,000 on a projector they often expect it to be INSTALLED for free! Even though the profit from that projector is often less than $100. No, I'm not kidding. When online pricing is readily available, it is the labor which must hold true to make a profit. But, people don't want to pay $60 or $80 (or more) for an hour of skilled A/V labor on a luxury item.
So, that may be the crux of it. Home improvement is for the house overall. Car repairs are a requirement. Gotta have a GOOD PC running in the house. But, the luxury items perhaps are all competing on the same type of grounds and nobody wants to pay the rates which are appropriate to people who DO know their business.
Is there something fundamentally different about consumer electronics that makes the 'used car salesmen' crawl out of the woodwork? Or is there something fundamentally different about the distribution networks, dealer incentives, employee overhead, certification & licensing, etc.? I guess a better way of putting this in a succinct manner: "what's so damned hard about customer service, complete product knowledge, and commitment to excellence?".
Have you ever met your AVERAGE car mechanic? I've had a few friends that have been to Lincoln Tech and other trade educators. The guys can barely add, they get confused on which way to turn a wrench for the first year. They learn a trade, and it sticks with them for the rest of their life. Hanging drywall... It's not a skill, it's an art, and if you get good at it, you could have a job for life. But, almost anyone can eventually learn it.
Most GOOD A/V guys don't just know how audio works. They know how electrical signals down a wire can degrade over distance. They know that if a customer is interested in streaming video over their network, they may need to implement a higher bandwidth networking system so their A/V can do what is being required. They know what FLAC, WMA, WAV, and MP3 are and what differences may be run into. (let's not forget WMV, MP4, MKV, and ISO!)
They know how much power different pieces of equipment may draw so that proper circuits can be in place when necessary.
They know how to hang a TV. A TV on drywall, stone, masonry, commercial settings, with drop ceilings, with drywall... you name it.
This is where I can't speak NEARLY as much to the other trades, but A/V is a moving target like nothing I've ever heard of. It's truly impossible to be good at everything, and there is more than a ton of information available on products. Customers are CONSTANTLY hitting me with products I've never heard of, and I find myself buying things because I want to try them out (much to my wife's joy

).
So, you almost always end up with a customer who has read something, somewhere, about something new... that you know NOTHING about! I'm sure this happens in other areas, but after dealing with A/V I found that framing my basement was a joke. I wish I had NOT hired an electrician because I know I would've done a much better and cleaner installation than he did. Even FINDING an HVAC guy to add new vents was a pain. And the plumber was lousy. Heck, maybe the average A/V guy is identical to the average other trade.
The difference is often that a can of paint to spray your car some custom color is not typically $2,500 and you don't expect him to paint it for free.
I'm just confused as how the general concensus of so many people - many of whom own and operate their own businesses with distribution agreements, franchise limitations, supply chains, etc... could be so completely mistaken about why it is that CE retail is so full of issues, while other retail areas are much more service-oriented and streamlined? I guarantee that if any customers walking into a jewelry store were approached in the way they are in a CE store... that place would have no customers in less than two months.
I've always wondered why people feel like something is crazy about CE stores. I mean, WE aren't tourists in A/V. WE are the exception. I think most people (non-A/V) walk into an A/V store and appreciate the help. They are clueless which makes the sales guys helpful... Perhaps dangerous, but to that consumer, they are helpful. But, if you walk into a jewelry store, they aren't going to sell you a $120 cable AND a warranty. Just the warranty. And they likely have solid markup on that item to begin with to make it worth their time.
There are so many ways which A/V can compare directly to other retailers, but I sure don't want to go into Best Buy and tell them that I need their help with a distributed A/V system for my home with integrated home automation. Yet, that is EXACTLY what happens every day.
I do find that because there is so little margin on the big ticket items that many times the sales guys actually have to SELL! That's the used car salesman mentality. You came in with $500, but to make any money, the guy has to sell $700 worth of stuff.
I see this over at the Projector Central forums all the time. Someone sees a price on a bottom of the line business projector, then think they can build a theater for right around that price. No thought to the mount, or surround system, or the screen, or anything else... or even if that projector is even appropriate. They have set their budget AHEAD of finding out if their budget is even appropriate.
So, they then end up spending $300 or $3,000 more than they intended and it leaves a bad taste in their mouth, even though, they quite possibly ended up with exactly the quality and system they originally intended to get.
I'm afraid I see an awful lot of that in this industry.
Please don't misconstrue this as a belief that YOU are inherently dishonest because you run a business in this industry - I'm merely stating my opinion and experience as both a business owner and as a consumer - in what I believed at least were similar areas.
It's a toss up and consumers need to be aware (though rarely are) that most stores are NOT there to support them. But, that custom installation has a fee that is, and should be in line with the service they are going to get.
I don't do a lot of business with my own company, which I run part time, but my day job (commercial A/V) is busy. The growth is almost ENTIRELY through past work and word of mouth. Millions of dollars of growth this way.
Meanwhile I've gotten out of two sinking ships before they went under because they couldn't match up their actual expertise and satisfaction to their premium pricing. Still, finding customers who are happy to pay $70 an hour and actually get exactly what they want, is definitely tough for me.
Of course, I stink at marketing, so maybe I need more of that.
