Show #436 Feedback High End Audio Retailers

We recently received an email from a listener (Dave Audelo) that was a bit too long to read on our show but felt it needed to be read. So we are posting it here. Dave brings up some vaild arguments against some of our assertions from our previous show. We love it when we get feedback like this. We hope it spurs more dialog on teh subject.

Dave works for A&R Home Technologies. They provides high-end audio and video consultations and installation for homes and businesses in Tucson, Arizona and the surrounding area.

Dave's Email:

I recently got my Podcasts running in our new office and am happy to have you guys play at my desk once again.  I got to listen to episode #436 regarding High End retailers and have a more personal sentiment on this subject.  We are a “High-End” integrator in Arizona and sell, install, calibrate and service the upper echelon equipment you were discussing.

After listening to the show, I have to say that Mr. Russell has a much better perspective of this area of HD/Audio/Video, etc. than Mr. Derderian.  While I agree with Mr. Derderian that the “quality” of “consumer” audio/video gear has improved, I believe he over looked the fact that high-end equipment has made leaps and bounds as well.  Often, the “new” technology of today in the consumer market is handed down from the high-end market as their technology goes out of date and/or improves.  The car analogy you used is perfect since the chain of equipment often goes Formula1 to Ferrari to consumer vehicles.

The major point of distinction that I’m sure I’m taking a bit too much to heart J…is the difference between a “retailer” vs. an “integrator.” Braden brought up excellent points about “high-end retailers” offering more services and value to stay in business.  If they did, they would be integrators like us.  Where we are always going to be around in business is in the hand-holding and simplicity of the “system” experience.  A “retailer,” on the other hand, sells boxes.  In this case, Ara is correct with respect to the average consumer going in and looking for a box to watch or listen to.  By today’s standards, the boxes have gotten A LOT better, more features, and a lower cost.  Retailers want you to come in, buy, and get out.  If, like most consumers, you get home and have no clue what the plugs on the back of the component are supposed to do or where they should be connected, to bad!  Braden’s comment on their “installation” department made me smile, but I will not digress.  A decent amount of our company’s revenue comes from fixing, correcting, or redoing Big Box “installation” work. 

Like any purchase, there are always 3 factors to weigh and you can only choose two of the three in your favor.  In the Quality, Price, and Service balancing act, if you pick the two you want, you have to accept giving up on the third.  You can have high quality, great service, but not a low price.  If you are purely price driven, you can have a low price, and good quality, but have to accept little to no service.  Braden made an excellent point about high-end retailers needing to be price competitive…if they are trying to compete with a Big Box store.  As a business, that is a losing battle and there has to be more “value” for high-end if they are to survive.  Often the quality is there in most upper end products, but the service with a smile has to go along with it.  This is why I have to disagree with Mr. Derderian on his comment about high-end going the way of “online” sales.  Half the fun of these types of products is the people you get to share it with and the service that goes with it.  Just as you can’t buy a Ferrari on a Chevrolet dealer lot, you also don’t get treated like you are buying a Chevy when you are on a Ferrari lot.  You are both correct that there will always be the few that want “the best,” but they are not as plentiful as you may think.  The people that love this stuff, or want to learn about audio/video, or want it simpler, etc., they get hooked like the rest of us and a good integrator is there ready to help.

One post on the website commented on the stuffy nature of a shop he went to and they didn’t give him the time of day.  All of us high-end stores cannot be judged by one bad experience.  Most of us got into this business because we LOVE audio and video.  As we see where things can go, we just get hooked and it keeps going and growing.  If they didn’t have the passion for A/V and didn’t want to share, they deserve to go out of business!  This stuff is supposed to be fun, bring enjoyment and sometimes even bring families together for movie night, games etc.  That is why we do what we do!

I would be naïve to assume that a large portion of your listeners use our types of products or services: NuVision instead of Samsung, Control4 or Crestron instead of Harmony, AudioControl instead of Onkyo, etc.  Our business model and client base per capita tell us it ranges between 4% to 10%.  Funny enough, the economy has actually helped our business instead of hurt it.  The feedback we seem to be getting is that our client’s dollars mean more to them now than ever before.  If they can buy something nicer that will last longer, and have someone help them if they have questions or need service, that extra cost is worth it to them.   We could go into the “whys” of the higher cost of high-end gear from a build standpoint, but that would take could take up an entire show unto itself J

I do want to thank you for the great shows and great info and please don’t think I’m trying to “beat up” on you two or insult you in any way.  While I work in this industry, there are often new things I hear about from you guys and it is always fun and appreciated.  For once, I actually had a comment to make after hearing this particular show.  So…I figured since your show delved into my world, I could offer insight from someone who has the privilege of living in it.

Best Regards,

Dave
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Dave Audelo
A&R Home Technologies
Systems Design & Audio Engineering