New HT store

[jaguars_fan]

All,

I am looking to open a new store dedicated to HT and the home audio enthusiast. I am hoping to bridge the gap between the Circuit City/Best Buy equipment and the extreme high end stuff.

I am looking for any info from anyone else who has done this on how to become a dealer to some of the equipment manufacturers. I know that some of them have a new dealer link on the web site, but others are much harder to get ahold of, so any suggestions are appreciated.

Thanks!

 

[Rock&Roll Ninja]

Which companies in particular are you hoping to get a distribution deal with?

Theres no point in making us uncover who to contact about selling Brand X amps if you don't want to sell Brand X.

 

[Rob Babcock]

God, that'll take some major capital, won't it?

 

[jaguars_fan]

I am looking at some of the following:

receivers/amps
Harman Kardon, Onkyo, Sony (ES systems), Pioneer (Elite), Yamaha, Denon, etc.

speakers

Paradigm, Klipsch, Polk, RBH, Axiom

video/tv

InFocus, Sony, DaLite, etc

Like I said, I want to bridge the gap with what CC and BB would consider their top line equipment and what extreme high end stores would consider bottom/base equipment. Companies like Paradigm have proved that we can own great stuff for far less than we think, but you just can't get it where you can purchase audio/video as well as a washer/dryer or fridge.

My hope is to also provide the level of service that will allow customers to test drive equipment in their own listening/viewing environment versus just the store's rooms. I am also looking at providing installation and integration services. As far as capital is concerned, I have that covered, I just need to know the best way to proceed with my plans and all suggestions are welcomed!

 

[annunaki]

How large is the population in your city, what is the average income of people in the city, how much do you plan on advertising each month, are there any dealers in your area currently carrying the equipment you would like to carry, do the companies you wish to deal with require you to order a certain amount of product per month/quarter, what are you going to do with the customer who wants the equipment that is much less expensive than you carry, will you cater to them at all, will you do custom home installation (structred wiring, custom HT, whole house distribution), will you offer installation? These are just some of the questions you need to ask yourself before considering opening a store. I am not trying to be doom and gloom here, but if a business does not ask the right questions and put in place proper infrastructure before opening it will inevitably fail.

 

[nm2285]

If you're going to open a store that bridges the gap between CCity/Best Buy and the higher end stores, I think many people would like to see you carry products that neither of them carry.

Ex: Klipsch and Polk are already carried by the other two (unless your dealing with the reference line and the LSi series). I know I'd prefer to have different options such as NHT, Monitor Audio, Energy, Canton...companies that have very very well respected budget lines but also can do some higher end stuff (and that the big chains would never consider carrying).

BTW i doubt you'll have any luck with axiom...they keep they're costs down by selling online without retail stores.

Same goes for receivers. Try Marantz, NAD, Rotel, Integra instead of Yamaha, Onkyo, and maybe HK (although I am a big fan of them).

Of course, it'd probably be a good idea to carry at least one or two brands they'd be familiar with to draw them in.

Your target market is going to be:
-those who don't know enough about audio and are thus intimidated in going to the high-end stores but know there's something out there better than BBuy and CCity.
-those who love the audio and would live at high-end stores if they had the budget, but need the best in value to make up for what they dont have in cash.

In either case, offerings from companies not considered by BBuy or CCity would appeal to these customer bases. Just make sure you advertise prices enough so that even if they don't recognize the names, they're not intimidated by them.

Good luck!

 

[furrycute]

I don't know much about the video side of things, but I am really into the audio side.

For speakers, I would stay away from internet brands, I have heard some of them, and have been mightily disappointed (not going to name names).

Totems will appeal to the WAF crowd, they provide big sound from small speakers, kind of follows the Bose philosophy, but provides much better sound quality.

B&O also works along the WAF factor, more expensive, but blends nicely with many high end home decor. Not everyone is into big box speakers.

Magnepans, the planar speakers truly sound fantastic. But they need periodic servicing, and I'm not sure it's a good idea to sell these speakers alongside ultra expensive box speakers.

NHT, have always loved this brand. Their new home theater line is modular, very flexible in the upgrade department.

Cantons, heard very good things about this brand, but expensive, not sure enough people will want to spend the money for them.

Canadian companies usually make very good speakers for not much money. Paradigms, PSB, Energy (and of course Totem) come to mind.

For electronics, Shangling (did I spell it correctly) seem to have good reps with CD players. High end Yamaha, Denon, Pioneer elite receivers for the hometheater guys. Bryston, Mcintosh for the 2 channel crowd.

 

[jaguars_fan]

Where to start...

annunaki: I have begun to research my target market in the Pacific NW where the listed average income hovers anywhere from $35-45k/yr for a population of around 500k. I have not yet determined an exact budget but do know that I will need to allocate funds for advertising beyond the yellow pages. As for what a supplier will want/need in the way of constant revenue flow...I don't know yet, that's part of my homework before anything gets started. My partners and I are already low voltage certified and are pursuing CEDIA certification as well as renewing BICSI certification. We will offer full integration after our first year along with the structured cabling systems. Don't feel you are being harsh...you are absolutely correct in what you are saying and I am always playing devil's advocate myself in this.

furry: I agree with you on the internet brands and Canadian. I have owned Paradigm for quite a number of years and was quite surprised by the sound quality and value combination and that is partly what is driving me in this. I know I can get better sound from equipment I can't find at CC/BB but don't have the money to buy Conrad Johnson (no offense Conrad)!

nm2285: You make a very good argument as well. I know I need to get them in the door and attempt to cater to their needs as much as possible without selling them something they don't want which is why I mention some of the names I have (i.e. Polk, Klipsch, etc). Each of these companies does in fact make some fine equipment, but you typically won't see the better stuff at the aforementioned stores.

I thank you all for your thoughts/ideas. This is exactly the kind of stuff I want to hear. Another part of what is driving me in this (aside from a love of audio/video) is that I am tired of mass merchandising that is truly concerned with the bottom line and nothing else. The day CC and BB decided that a straight salary for all customer service employees (no more commission therefore no more need to have product knowledge) was the day that the average customer seeking advise lost the battle between customer service and a sale.

Again, many thanks and keep the ideas coming 'cause I am writing it all down!

 

[mtrycrafts]

Where to start...

annunaki: I have begun to research my target market in the Pacific NW where the listed average income hovers anywhere from $35-45k/yr for a population of around 500k. I have not yet determined an exact budget but do know that I will need to allocate funds for advertising beyond the yellow pages. As for what a supplier will want/need in the way of constant revenue flow...I don't know yet, that's part of my homework before anything gets started. My partners and I are already low voltage certified and are pursuing CEDIA certification as well as renewing BICSI certification. We will offer full integration after our first year along with the structured cabling systems. Don't feel you are being harsh...you are absolutely correct in what you are saying and I am always playing devil's advocate myself in this.

furry: I agree with you on the internet brands and Canadian. I have owned Paradigm for quite a number of years and was quite surprised by the sound quality and value combination and that is partly what is driving me in this. I know I can get better sound from equipment I can't find at CC/BB but don't have the money to buy Conrad Johnson (no offense Conrad)!

nm2285: You make a very good argument as well. I know I need to get them in the door and attempt to cater to their needs as much as possible without selling them something they don't want which is why I mention some of the names I have (i.e. Polk, Klipsch, etc). Each of these companies does in fact make some fine equipment, but you typically won't see the better stuff at the aforementioned stores.

I thank you all for your thoughts/ideas. This is exactly the kind of stuff I want to hear. Another part of what is driving me in this (aside from a love of audio/video) is that I am tired of mass merchandising that is truly concerned with the bottom line and nothing else. The day CC and BB decided that a straight salary for all customer service employees (no more commission therefore no more need to have product knowledge) was the day that the average customer seeking advise lost the battle between customer service and a sale.

Again, many thanks and keep the ideas coming 'cause I am writing it all down!

Don't forget to check out your competition in that area. You may want to visit all others outside of CC/BB. I am not sure you could stand much competition. The other thing is the internet marketplace, another competition you face.

 

[Leprkon]

As far as capital is concerned, I have that covered, I just need to know the best way to proceed with my plans and all suggestions are welcomed!

if you can cover that kind of capital, I just have two words for ya:

RE-TIRE !!!

 

[jaxvon]

You may also want to look into carrying RE Designs. It's another company that's committed to quality without snake oil and rediculous prices. They also have a fairly small product line, so it won't be as imposing as say, Dennon. If you plan on stocking some of the high-priced stuff, you might look into Wadia CD players/Transports and DACs.

Just thoughts.

Good luck with your store! Too bad you aren't in my area.

 

[Dan]

There is a store in my area which I bought from that stakes out a large inventory from Klipsch to NHT to expensive (high end?) stuff like Wilsons. Based on their stuff I might suggest a few not already mentioned. Vandersteens are a great value at their price points but have poor WAF. They also sound rather different and demo very well. Ariel acoustics make excellent stuff as does Meadowlark.

Consider Parasound, B&K and Rotel for amp/preamp. Also Sherbourn which is hard to find but sounds like a good deal. Some people (like me) like American prepros because they are more straightforward to use with better manuals in general. Linn also makes some good products in your area.

Some Mapleshade CDs make great demo recordings as they are so well done.Good luck on your venture. The best part would be hanging out in the store all day listening to good tunes on great equipment when things are slow. Sure beats working.

 

[Leprkon]

It would be really cool if...

It would be really cool if, instead of putting your money into a new HT store, you went with a new HT concept. If somebody out there would find some OEM's to put together a big TV that had nothing in the box but a screen and interconnects, (or possibly a card cage that you could plug interconnect cards into), now that would be cool.

No money wasted on poor quality internal speakers and amps, no unnecessary antennas, etc. You could halve the R&D and packaging costs by not having to cram a bunch of generally unwanted and unused junk in a given size case and your customers would only have to pay for what they actually wanted.

Why have a tuner when people use a cable box or an external HD tuner ? why have speakers when so many people have HT quality way beyond what is in a TV ?? You wouldn't need a remote, since the components would do all the work, just an on/off button and a source select (and you might be able to do some of that with triggering).

Something like this won't sell you tell me ??? why, then, are projectors such a hot commodity (no tuners, no speakers, no remote) ? it's not like you have to develop something new, just throw away what you already don't need and if some new format comes along, you just add a connector card.

and you might want to make sure the top is wide enough and solid enough to safely put a really good center channel on it...

 

[jaguars_fan]

Leprkon, as far as me retiring, I’m too young. This is one of those 'radical sabbatical' things, I suppose.

As for other area competition and Internet, I have some of that covered in ways to get people in the door outside of my advertising and that is to hold raffles for equipment and customer rewards that are meaningful. I will be polling my customer base to help decide how 'meaningful' is defined in their opinions, as well. Where the internet is concerned, I know that we all understand that Internet prices are hard to beat so I have to be ready for service both before and after the sale. Only in rare cases will an Internet seller allow for in-home test drives and then it's typically a 30-day money back guarantee and sometimes the buyer pays shipping costs. Additionally, it's much easier to go to a store and listen to multiple equipment combinations.

From Dan:
The best part would be hanging out in the store all day listening to good tunes on great equipment when things are slow. Sure beats working.

I agree whole-heartedly!

Keep it coming!

 

[furrycute]

They already sell something like this, it's called a monitor.

But monitors are very expensive because they do not have the economy of scale like the normal TV sets do.

 

[Leprkon]

They already sell something like this, it's called a monitor.

it can't be called a monitor... monitors have cats across the top, not center speakers....

i find it hard to believe you couldn't use OEM TV pieces and make a profit...

 

[Yamaman]

Here in Toronto, there is a speaker manufacturer called StudioLAB (speakerdirect.com). They are relatively unknown in the states I would think. Maybe they are trying to increase their presence in the US.

I own both Paradigm and StudioLAB. I'm not technical enough to provide numbers, but I'd say they are on par with Paradigm. There are some reviews on their Reference Series (search the web) that recommend these speakers.

Because they may be relatively unknown, they may be harder to sell, but if the price is right, the quality will speak for itself as potention buyers listen to them.

_Yama

 

[Gatorchong]

There is a business here in South Texas called "Bjorn's" that is pretty similar to what you're trying to do. They seem to be pretty successful, but they are in a higher income part of town. They carry the higher end lines of the big companies: Yamaha, Denon, Pioneer Elite, etc. But they also carry the super expensive stuff: McIntosh, Logan, and Definitive. But as their success grew, they started carrying Bose and Nakamichi; (Bose has their own room) kind of disappointing but business is business I guess. Last time I went in there they started carrying a lot of gadgets like the portable DVD players as well so I guess they're trying to attract "regular people" into their store. Anyway, it's a cool place, too many salesman, but I'd think there's definitely a market for this kind of store in most major cities. I think Bjorn's does most of their business in televisions being that almost every available space on the wall is covered with a plasma screen. They also keep you going back because it seems like every time you go they're trying out a new line of products. I need to talk to them about carrying RBH though since nobody else does around here, and I'd like to hear some. But it's definitely a good idea. Good luck.

 

[miklorsmith]

You're not in Seattle, bychance?

Gallo Acoustics has quite an excellent line of speakers. I've got their "big" Ref. 3's which are actually quite small and sound huge. They fill my giant listening room with aplomb.

Their HT speakers are cool little globes with excellent reviews. Many colors, mounting options, and different models. Good subwoofers too. Great lifestyle pieces, pretty good prices, and excellent quality.

 

[jaguars_fan]

You're not in Seattle, bychance?

Not yet, but we will be within the year. Probably somewhere north, perhaps the Mt. Vernon area.

I have compiled quite a list to start withand will be publishing it here in the very near future to let you all comment.