So I've been toying with ….

[flyboylr45]

So I've been toying with the idea of becoming an audio dealer. Does anyone have any experience or information on what is required? I've auditioned several pieces of high-end audio in people's homes. Most of them in family rooms and such. None had a dedicated room to properly audition equipment. Hell most brick and mortar stores don't have them either. Any info would be greatly appreciated. Thanks.

 

[Irvrobinson]

A joke among professional musicians comes to mind. How do you make a million dollars as a professional musician? You start with two million and play gigs until you only have one million left. I think being a high-end audio dealer is like that these days.

 

[highfigh]

So I've been toying with the idea of becoming an audio dealer. Does anyone have any experience or information on what is required? I've auditioned several pieces of high-end audio in people's homes. Most of them in family rooms and such. None had a dedicated room to properly audition equipment. Hell most brick and mortar stores don't have them either. Any info would be greatly appreciated. Thanks.

Do you have any retail experience? If it was before the internet, forget everything you know- nothing is the way it was. Look at the dealers in your area- how many have been around for more than 10, 20 or 30 years? Have you noticed that a lot of audio dealers closed? There's a reason for that.

What sells in your market? What is missing from the offerings in your area? Has anyone tried to fill the void? Were they successful?

If you're thinking about opening a shop in your house, make sure the local authorities allow it- if your area isn't zoned for business, they won't let you. Also, you'll need to set up the business with the state's Department of Revenue, IRS and you'll need a resale certificate & any applicable business permits/license(s) Will you install equipment? Better have liability insurance.

There's a lot to consider- how much will it cost just to open the doors, how will you pay yourself, how long can you go without income from this business, how much will you display and how will you pay for it? Demo equipment isn't free and some companies require a substantial opening order if you want to buy directly from the company. If you won't be a direct dealer, you'll need to find out which distributors sell the various brands you want to sell.

You need a business plan.

 

[flyboylr45]

I'm referring to an at home business. For example, when I bought the Esoteric, the guy had it setup in his family room with some Pass Labs and Montana speakers. He knew what I was looking for, ordered it because he didn't have that one in stock, and I went to see it.

Yes, my area is zoned for business and No, I will not be installing anything. As far as income, I have zero plans of leaving my career. This would be just a side business. Most of these independent retailers don't have these high $$ items in stock anyways so inventory is a non issue.

Was wondering what some manufacturers require to become a certified dealer. Didn't know if anyone here had done this or had any insight on how it works. I guess I could always contact a manufacturer and inquire but thought I'd try here first.

 

[Alex2507]

You could become an RBH dealer. I mean, how hard could it be? ADTG did it.

 

[flyboylr45]

You could become an RBH dealer. I mean, how hard could it be? ADTG did it.

Now THAT'S funny.

 

[markw]

AmHonestly, the best way to get answers is to contact the companies you're interested in representing. Some questions you might ask are

Am I required to keep stock?

How much will stock cost? Does it vary with volume you buy from mfgr?

Can I return what I don't sell?

Can I be flexible with pricing?

Are there any other dealers of this line in the area?

Is there any way your product is available via the internet?

How do you handle returns, repairs, and exchanges?

Am I required to have a repair facility on site? If not, where is the closest repair facility? Who pays for the warranty repairs, you or me?

Do I get any credit/discount if I have to sell these repairs as "B" stock?

...and whatever other questions you might think of. Remember, they see this as a business, not a thing among friends.

 

[highfigh]

I'm referring to an at home business. For example, when I bought the Esoteric, the guy had it setup in his family room with some Pass Labs and Montana speakers. He knew what I was looking for, ordered it because he didn't have that one in stock, and I went to see it.

Yes, my area is zoned for business and No, I will not be installing anything. As far as income, I have zero plans of leaving my career. This would be just a side business. Most of these independent retailers don't have these high $$ items in stock anyways so inventory is a non issue.

Was wondering what some manufacturers require to become a certified dealer. Didn't know if anyone here had done this or had any insight on how it works. I guess I could always contact a manufacturer and inquire but thought I'd try here first.

If you can sell without demo-ing equipment, you had better be ready to order things and then return them after the customer decides that it doesn't fit their needs. Manufacturers of power amps, preamps and many other items often require demo items and for the dealer to be able to do an effective demonstration, know how to set up a system properly and make it work in a typical room. They may also have annual purchase requirements, may decide that they want someone else to be the dealer in a particular area and they may ask to visit your place, to make sure the demo equipment hasn't been sold before the agreed upon period (usually one year). They may have strict pricing guidelines and if you sell for less, you can lose the line. If you sell online, make sure that's allowed- most don't. You can list what you sell, but you won't be allowed to sell online by most companies unless you have a special agreement and those are reserved for people who were there when the company was brand new, wasn't doing well, or the dealer has done something special for the manufacturer. There's a lot of "What have you done fro me, lately?" in this business and there are lots of whores.

If the high dollar brands don't require the dealers to stock the items, how do they sell anything? Most brands don't sell purely by reputation- people still want to hear it if they're not getting a price that's similar to what they can get online. B&M stores have closed specifically because it costs a lot to pay salespeople to demo things and not make the sale.

Get ready for a lot of rejection, too. If you think they want to sign people up when they have no experience in the business, you're wrong. They care more about them than you.

 

[KEW]

I'm thinking in terms of Florida retirees. If selling HT systems with AVR's, I believe you could get a lot of good "word of mouth" if you included a couple of hours (but one trip only) setup with a system purchase (or as an optional service).
Most people are not familiar with Audyssey or how it works (I would love to know how many people have AVRs with Audyssey but haven't a clue).
Being older, many would have a difficult time handling heavy amps speakers, and subs by themselves.
I think they would be impressed watching you run through the set-up routines and doing the sub crawl, etc. and be proud to know their setup was done by someone who was especially concerned with getting everything "just so". They would tell all of their friends about the treatment they got!
There are probably complications I haven't thought of, but if they are in a well run retirement community, word travels.

 

[highfigh]

I'm thinking in terms of Florida retirees. If selling HT systems with AVR's, I believe you could get a lot of good "word of mouth" if you included a couple of hours (but one trip only) setup with a system purchase (or as an optional service).
Most people are not familiar with Audyssey or how it works (I would love to know how many people have AVRs with Audyssey but haven't a clue).
Being older, many would have a difficult time handling heavy amps speakers, and subs by themselves.
I think they would be impressed watching you run through the set-up routines and doing the sub crawl, etc. and be proud to know their setup was done by someone who was especially concerned with getting everything "just so". They would tell all of their friends about the treatment they got!
There are probably complications I haven't thought of, but if they are in a well run retirement community, word travels.

And as soon as someone who sells steps into a customer's house to do ANYTHING, they're liable for damages.

 

[KEW]

And as soon as someone who sells steps into a customer's house to do ANYTHING, they're liable for damages.

There is definitely a level of trust involved.
If I damaged something, I would consider it my obligation to make amends.
If I didn't, they would have to sue me and prove damages.
Maybe I'm naive to believe the system still works at all, but life would lose it's joy if I was always what-if'ing the worst case scenario.
Nonetheless, your point is taken!

 

[flyboylr45]

Thanks for all the replies. Definitely a lot to think about. I'm thinking more of a retailer with no setup services. I jut want to be able to represent a manufacturer or two. As far as listening room is concerned, from what I've been exposed to, they're not very picky. Maybe ADTG can chime in with what was involved or what the manufacturers are looking for.

 

[highfigh]

There is definitely a level of trust involved.
If I damaged something, I would consider it my obligation to make amends.
If I didn't, they would have to sue me and prove damages.
Maybe I'm naive to believe the system still works at all, but life would lose it's joy if I was always what-if'ing the worst case scenario.
Nonetheless, your point is taken!

I consider it my obligation too, but I'd rather not have to sell everything I own and not come close to covering the damage. That's why I'm as careful as I am.

I have a customer who moved from one nice house to a different one, at the end of a street on a bluff that overlooks Lake Michigan. I severely underestimated the value of the house when I worked on it- she did some remodeling and a lot of addition to it, with the project taking almost two years and much of it being opened, to allow work on electrical, plumbing and HVAC. I carry $1 Million in liability, which includes any damage I do while working on it, but also if something I do is the cause of a fire. However, insurance has deductibles and it doesn't cover poor workmanship. When I worked on the house, she hadn't moved everything in because the other house hadn't sold and it's a good thing because that stuff takes up a lot of space and it's stored where I was working, so it would have wasted a lot of time. It's also a good thing it wasn't there because I would have had to add about $2M to my liability for the items and another million because she paid $1.5M and added at least another $500K to the value through the construction.

The point isn't to absolve someone of blame, it's to keep them from being bankrupted in the event of accidental damage. The homeowner's insurance isn't going to cover it. I know of two people who caused major water damage to high-rise apartment towers and I never want to go through that pain.

 

[highfigh]

Thanks for all the replies. Definitely a lot to think about. I'm thinking more of a retailer with no setup services. I jut want to be able to represent a manufacturer or two. As far as listening room is concerned, from what I've been exposed to, they're not very picky. Maybe ADTG can chime in with what was involved or what the manufacturers are looking for.

I worked for someone who pissed me off so badly that I had a hard time sleeping and one night, I got up and wrote out what I thought I'd need if I wanted to be in that business. I stopped after three full pages in a legal pad, single-spaced. Recently, I looked into buying a business that was closing due to the owner's desire to retire. I knew the payroll numbers, found out what he was paying for rent, utilities, used the insurance numbers from my agent and decided that it cost too much to consider. The rent was $2800 for over 4000 sq feet, which is cheap. The biggest expense was for the service tech/installer, who was being overpaid, but since he did repairs, the store was able to provide what very few in this market can. I decided that it wasn't gonna happen when I determined that I would have to generate profit of more than $12K/month in order to break even and that's without paying myself.

If you really want to do this- get a part-time job doing it, then learn everything possible about how to do it and how not to do it. If you have sales experience (preferably retail, as long as any training was effective and taught the right things- something I almost NEVER see, these days), that's a good start. One of the most important things about this business is listening to the answers someone gives, but also asking the right questions. Unfortunately, it also requires the ability to read minds and the ability to see through BS. When someone says they don't crank their stereo, yeah, they crank their stereo. When they say they can hear things that are inaudible, be diplomatic.

If you find that you can't sign up with manufacturers, you might consider buying and selling good, used equipment. If possible, find someone who knows how to service it and you WILL find some bargains. I just found a B&O Beogram RX at Goodwill last Saturday. The problem- someone tried to play the aluminum platter for too long and the stylus has been ground to a nub. This wouldn't be a problem but the cartridges are rare and the stylus isn't removable but for $20, it was worth the risk. Look around in your area- I'm sure people are selling things they don't need or want. Estate and rummage sales are a good resource, too. You would be amazed by what you can find.

 

[flyboylr45]

I worked for someone who pissed me off so badly that I had a hard time sleeping and one night, I got up and wrote out what I thought I'd need if I wanted to be in that business. I stopped after three full pages in a legal pad, single-spaced. Recently, I looked into buying a business that was closing due to the owner's desire to retire. I knew the payroll numbers, found out what he was paying for rent, utilities, used the insurance numbers from my agent and decided that it cost too much to consider. The rent was $2800 for over 4000 sq feet, which is cheap. The biggest expense was for the service tech/installer, who was being overpaid, but since he did repairs, the store was able to provide what very few in this market can. I decided that it wasn't gonna happen when I determined that I would have to generate profit of more than $12K/month in order to break even and that's without paying myself.

If you really want to do this- get a part-time job doing it, then learn everything possible about how to do it and how not to do it. If you have sales experience (preferably retail, as long as any training was effective and taught the right things- something I almost NEVER see, these days), that's a good start. One of the most important things about this business is listening to the answers someone gives, but also asking the right questions. Unfortunately, it also requires the ability to read minds and the ability to see through BS. When someone says they don't crank their stereo, yeah, they crank their stereo. When they say they can hear things that are inaudible, be diplomatic.

If you find that you can't sign up with manufacturers, you might consider buying and selling good, used equipment. If possible, find someone who knows how to service it and you WILL find some bargains. I just found a B&O Beogram RX at Goodwill last Saturday. The problem- someone tried to play the aluminum platter for too long and the stylus has been ground to a nub. This wouldn't be a problem but the cartridges are rare and the stylus isn't removable but for $20, it was worth the risk. Look around in your area- I'm sure people are selling things they don't need or want. Estate and rummage sales are a good resource, too. You would be amazed by what you can find.

I like the idea of selling good used audio equipment, but I don't want all sorts of people just showing up at my house. That's why I rather just be dedicated to a couple of high end brands.

 

[highfigh]

I like the idea of selling good used audio equipment, but I don't want all sorts of people just showing up at my house. That's why I rather just be dedicated to a couple of high end brands.

OK, but what if those brands become big sellers?

I wouldn't want to sell out of my house unless it was a duplex with a dedicated retail side and no access from one unit to the other.

FYI- high end customers take longer to make their buying decisions. That's the reason those stores were called 'salons'- it was a place to become comfortable and without distractions. As far as used- you can be as selective as you want.

 

[walter duque]

Greg lives about 45 minutes from me and he makes them speakers in his garage and does very well. You can go to his house, bring your own electronics and he will demo right in his living room. Or you can demo on his system. Just bring a CD or what ever.

http://www.gtaudioworks.com/Products.html

BTW these can be picked up for around 3.5k, as you know retail doesn't mean nothing, it's just a number. As you know B&K at 50 percent off retail the dealer is still making money.