Buying audio online from the USA -- mistake?
50 Watt CAFz'r
Joined: Dec 2000
Posts: 241
Chris,
The problem with this market is that the barrier to entry is so low, that any idiot can jump in (and just as easily jump right back out) and leave his customers hanging.
I don't know who you are referring to at this point, but I'm sure if you guys compare how much you make per hour, and how much risk each of you have in your present job, you might be surprised that your example might switch with you.
Running a mom and pop internet operation is like running a mom and pop brick and mortar. If you have two people that do all the work, what happens if someone gets hurt? All the eggs are in one basket at that point.
Manufacturers are looking to get in with a web retailer, and what can a mom and pop operation give them? With the manufacturers starting to clamp down on transshipping, who do you think is going to get left out in the cold?
Nothing wrong with a couple doing all the work, but I'm afraid they are probably going to get shut out or priced out of the market.
I do most of the car audio buying at Sounddomain, and I look over and we have 24/7/365 customer support, emails answered 7 days a week, a tech support manager, a customer care manager that used to run Amazon's customer care department, 12 seat call center, a warehouse packed with products, and an engineering department to keep the website up and running.
I have all the respect in the world for a guy trying to make his niche on the internet, but my personal opinion is the guy is bringing a knife to a gun fight and will probably end up losing.
And as for knowing about margins and how much they make, when you price match other retailers, you see the ugly truth. Some guys get buy on less than 10 points of margin (50 bucks profit on a 500 deck) and try to make it up by raping you on shipping and handling. When stuff is sold below dealer cost, and you are factory authorized and do large volume, you realize even then you are a small fish in a big pond. If someone who is factory direct and does 6 figures complains about the internet pricing, how do you think a guy who does $10k a year in a brand going to feel?
Juan
I'm trying to think and understand what you mean by this?? But no matter how many times I read it I can't understand. I don't see what the problem is with someone running a website out of thier basement? (Provided they provide the same service and quality as a shop with a store). And you you also explain how being a web developer/shipper/receiver/tech support and order entry for 14 hours a day is dumb? At first I think when most people open a business they are EVERYTHING of it. If it wasn't for entrepreneurs like this the only places we would be able to buy stuff is Future Shop, Best Buy and other huge stores like this (not that there is anything wrong with these stores). And how would you know that making $20 profit, while selling something that doesn't work well will make them happy?
I think what the point you are trying to get at is there are alot of online stores like this. But you also failed to meantion that not all are like it. It's like normal places that own a shop, there are ALOT that are crap and not worth walking into, but at the same time there are also a few good ones, but that doesn't get rationalized bad??
I know exactly how at least 1 online shop runs. The owner and his wife does all the work and work 14+ days, and trust me, they are not young and dumb, they are doing better than I am by working a full time job with overtime. And you can get a hold of them more than you can a shop open 6 days a week. They will also go out of thier way to help people out, and do what's right in satisfying the customer. They have and will be doing more for the industry than most shops have done as well.
Another myth is that online shops don't have bills, a good one will have almost as many bills as a shop. But most people overlook this because how hard is it to setup a webpage? But there is alot more to it than this.
So just because someone runs an online shop doesn't mean it's just like the rest. But like anything else you got to do some research and find out who your dealing with. </font>[/QUOTE]
The problem with this market is that the barrier to entry is so low, that any idiot can jump in (and just as easily jump right back out) and leave his customers hanging.
I don't know who you are referring to at this point, but I'm sure if you guys compare how much you make per hour, and how much risk each of you have in your present job, you might be surprised that your example might switch with you.
Running a mom and pop internet operation is like running a mom and pop brick and mortar. If you have two people that do all the work, what happens if someone gets hurt? All the eggs are in one basket at that point.
Manufacturers are looking to get in with a web retailer, and what can a mom and pop operation give them? With the manufacturers starting to clamp down on transshipping, who do you think is going to get left out in the cold?
Nothing wrong with a couple doing all the work, but I'm afraid they are probably going to get shut out or priced out of the market.
I do most of the car audio buying at Sounddomain, and I look over and we have 24/7/365 customer support, emails answered 7 days a week, a tech support manager, a customer care manager that used to run Amazon's customer care department, 12 seat call center, a warehouse packed with products, and an engineering department to keep the website up and running.
I have all the respect in the world for a guy trying to make his niche on the internet, but my personal opinion is the guy is bringing a knife to a gun fight and will probably end up losing.
And as for knowing about margins and how much they make, when you price match other retailers, you see the ugly truth. Some guys get buy on less than 10 points of margin (50 bucks profit on a 500 deck) and try to make it up by raping you on shipping and handling. When stuff is sold below dealer cost, and you are factory authorized and do large volume, you realize even then you are a small fish in a big pond. If someone who is factory direct and does 6 figures complains about the internet pricing, how do you think a guy who does $10k a year in a brand going to feel?
Juan
Originally posted by Chris B:
</font><blockquote>quote:</font><hr />Originally posted by OldOneEye:
6. Markup. The guys in Canada like Gemsem have to pay people to fix stuff. Someone has to pay for the website. Its no different than any other business. Some guys are happy buying beer money and weed with the website out of their basement. Some guys are young, and dumb and are the web developer/shipping/recieving/tech support/order entry and work 14 hour days hoping to some day make it big. At this point in the game, if you haven't got some brands authorized and your trying to compete with some of the big names, you won't make it. But they are happy making a $20 profit on a $500 radio and it distorts what everyone else thinks car audio is worth. Good luck trying to get ahold of these guys when the product goes bad and they barely broke even on your sale even when things were perfect.
</font><blockquote>quote:</font><hr />Originally posted by OldOneEye:
6. Markup. The guys in Canada like Gemsem have to pay people to fix stuff. Someone has to pay for the website. Its no different than any other business. Some guys are happy buying beer money and weed with the website out of their basement. Some guys are young, and dumb and are the web developer/shipping/recieving/tech support/order entry and work 14 hour days hoping to some day make it big. At this point in the game, if you haven't got some brands authorized and your trying to compete with some of the big names, you won't make it. But they are happy making a $20 profit on a $500 radio and it distorts what everyone else thinks car audio is worth. Good luck trying to get ahold of these guys when the product goes bad and they barely broke even on your sale even when things were perfect.
I think what the point you are trying to get at is there are alot of online stores like this. But you also failed to meantion that not all are like it. It's like normal places that own a shop, there are ALOT that are crap and not worth walking into, but at the same time there are also a few good ones, but that doesn't get rationalized bad??
I know exactly how at least 1 online shop runs. The owner and his wife does all the work and work 14+ days, and trust me, they are not young and dumb, they are doing better than I am by working a full time job with overtime. And you can get a hold of them more than you can a shop open 6 days a week. They will also go out of thier way to help people out, and do what's right in satisfying the customer. They have and will be doing more for the industry than most shops have done as well.
Another myth is that online shops don't have bills, a good one will have almost as many bills as a shop. But most people overlook this because how hard is it to setup a webpage? But there is alot more to it than this.
So just because someone runs an online shop doesn't mean it's just like the rest. But like anything else you got to do some research and find out who your dealing with. </font>[/QUOTE]
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