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  1. #1

    Member Sales Rating: (10)

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    Default Looking at new business

    I have been looking into getting into a new business, selling audio. Mostly because there is no stores within a 1.5-2hr one way drive to the nearest place to audition anything (Adcom, Klipch and Parasound to name a few) not too mention any Polk dealers short of CC. The local installer/ store has absolutely nothing to look at but has stated to me that He can get and would recomend Denon and Onkyo as good recievers for HT and stereo and that if there was a problem he would send it back and that he doesn't sell based upon price and has wouldn't recomend an amp for the longest time (asked 3 times) but finnaly stated after I recieved the Adcom that they made a good product and since that I was not keeping it and looking to get another has said that Parasound would be as good for a 7 channel amp (they don't have a 7 channel amp I would have to get a 5ch & 2ch) and that he was a dealer I can't find his name as a dealer anywhere. To his defence he has been in business for a while (18yrs I know of).
    Anyhow, that is the basis for my looking into becomming a seller of audio (nobody close by) and have already got DH-Labs as a supplier and registered with them and am awaiting to hear from a rep from Adcom (been playing phone tag for the last week). I am also looking at building to turn into audition rooms (been abandoned for awhile but in good shape and looks to be easly utilized.
    What are your thoughts pros/cons?

    Thanks
    Dave
    Last edited by dave shepard; 09-24-2004 at 07:15 AM.

  2. #2

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    Default

    Well I am not a business owner and have never worked in the retail industry so that is my non-existant business history. I have dealt with hundreds of people on a daily basis and enjoy talking to them ...even strangers.

    Seems like if you are located around a lot of people and you have the initiative and resources......I say why not give it a try.
    I live very near a big city of about 1 million people and there is only a very limited number of highfi let alone midfi places within the whole city. Three or four places tops and that includes a couple of those being appointment only. I care not for the appt. only places for browsing because I am there for browsing at this time only. Sure looks like the demand for stereo stuff is there especially if the prices are attractive. Oh, as far as audition rooms go that would be fantastic...most of the time 3/4 of the stuff is not hooked up and I hate to ask to hook it up because I am just browsing. That would make it much more tempting for future or immediate purchases.......
    Maybe someone with a business background will see this and give their opinion. I would venture to say a person never knows until they try.
    Let us know what your new website will be.
    :D .............Pat
    Denon #2900, Denon stereo receiver, Conrad Johnson Sonographe 120 amp, Blue Jeans cables, and Klipsch RF-7's

  3. #3

    Member Sales Rating: (1)

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    Default

    Dave i like the idea. i have often thought about this my self. i thought about installations and custom theater rooms. the thing to consider is you need lots of cash to get started. it is easy to lease a store front and register your business. the hard part is determining what products to sell and what the area is going to bring as far as customers and demand. I say you go for it and keep us all posted on the progress. you never know you may get a lot of business right over the net through several audio video forums.

  4. #4

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    Default

    what are the demographics of the area that you are in? will you have enough people who can afford this stuff?

  5. #5

    Member Sales Rating: (10)

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    Default

    Those are some of the things I have been and still am mauling over and looking into. It seem that for the most part that most people are happy with CC and BB and I'm not complaining about my speakers that's for sure, but the choice of other hardware is limited to their offerings. I am live in an area that is mostly country (farming) but am close (5min) from Hermitage, Pa which is getting full of big business type people commuting to Pitt., Pa and are building $200k+ homes on postage stamp lots. and also not to far from Poland, Oh (15min) which constists of Dr's and also big business guys. The down fall is the general economy not the best which is where I was once told that "Appeal to the rich, tive with the masses...... Appeal to the masses, live with the rich" not that I want to live with the rich (mostly snob/cheep asses as proven from my current business) just looking to be able to make something extra doing something I enjoy. I have gotten in touch with the Adcom rep and he said that he doesn't cover anywhere near my area and that there isn't any that does so he said that I would have to call them direct and get things direct. I asked what were the requirements Adcom has in place for a seller and he said that they would like to see at least $25,000 in sales for the year. Now that's just Adcom and if a store has more then one line that can get pretty hard if the demagraphics don't agree. DH-Labs had required me to not sell over the internet as they have enough on-line (but if someone calls that's different) and they are trying to keep the playing field fair for every dealer by keeping them spread apart. I have to look into things pretty good before I commit to it on-line might be something to coinsider for additional sales as long as there are no stepulations with the hardware Co's. Gotta get my ducks in a row and info first.

    Dave
    Last edited by dave shepard; 09-27-2004 at 11:56 PM.

  6. #6
    Stronzo
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    I, like so many others also share your interest and enthusiasm about starting up a business catered to offer services and products the competitors do not carry. For most of us, it is simply too expensive of a project to take by ourselves. Depending on how far you’re willing to go, most people have to take loans and find investors to get started. I only wish I could tell you where to begin as I have no clue.

    Re-furbishing the lot, preparation for the rooms, cost of equipment, insurance, electric, et all’ would be astronomical.

    Determining a product base is also quite a challenge. What customers are you trying to market to? Do you really understand what the consumer wants, or are you more less going to judge by your own tastes and requirements?

    Most people are interested in their surround sound, so you will find very few customers who are interested in stereo high fidelity. They love their video goodies, satellites, and HD receiver boxes. They also want their stuff delivered to the home and installed. More and more people want their house pre-wired. I don’t know of ANY business around now that can survive without these tools. This means you will have to find and hire labor to carry out these tasks, as you can’t do it alone.

    What will you do for advertisement? Rely on word of mouth at first and then make a few articles? That is a key element to any business, and one that often times is not free.

    Even after you determine what products you think will be fun and successful to sell, you have to worry about things such as distribution rights and standards of the business to keep that license. Most companies have a quota they want you to make, along with standards of experience and floor space. Polk Audio wants someone who has experience, a decent reputation and available floor space to successfully demo products. And the expectations may vary, eliminating choices and sometimes even options.

    It sounds like you have a good idea of what it all takes, and no doubt I am just repeating the obvious. All the while, it is a good venture if you “have your ducks in a row”, have the financial bandwidth to support it, and have an audience you can market to… along with a fluid business plan.


    Sean

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