unauthorized e-tailers
If people are buying from these websites, then they value a lower price above all else. Some people are willing to take the risk of having no warranty in exchange for a much lower price. In the majority of cases there is no need for a warranty anyway, providing the equipment is installed and used correctly.
Furthermore, I would go so far to say that a large population of car audio enthusiasts on this and other car audio forums are not paying retail prices in brick and mortar shops. The people complaining are those that own or work at shops. Maybe shop owners should consider revising their business models if they are losing out on sales to e-tailers. I'm not saying they should move completely to e-tailing themselves, but using internet technology to complement in-store operations in some way. I think it is time to adapt rather than complain.
However, I feel that the current e-tail websites are also flawed because the only thing they are competing on is price, making the products they are offering mere commodities. The only way to gain business as a stand alone e-tailer is to lower prices to beat competitors. This leads to lower profit margins. Therefore, I think that stand-alone e-tailers will not be sustainable in the long-run if they continue to focus only on price.
Furthermore, I would go so far to say that a large population of car audio enthusiasts on this and other car audio forums are not paying retail prices in brick and mortar shops. The people complaining are those that own or work at shops. Maybe shop owners should consider revising their business models if they are losing out on sales to e-tailers. I'm not saying they should move completely to e-tailing themselves, but using internet technology to complement in-store operations in some way. I think it is time to adapt rather than complain.
However, I feel that the current e-tail websites are also flawed because the only thing they are competing on is price, making the products they are offering mere commodities. The only way to gain business as a stand alone e-tailer is to lower prices to beat competitors. This leads to lower profit margins. Therefore, I think that stand-alone e-tailers will not be sustainable in the long-run if they continue to focus only on price.
500 Watt CAFz'r
Joined: Aug 2001
Posts: 866
Consider this....
How many times do you as a salesman in a store waste you time helping some guy that soaks you for information and then goes and buys it from an unauthorized etailer?
The dealer in canada has quite a few things they offer .
1- all the shows they put on at there own expense(how would it be if the retailer made you show a valid reciept from a shop to enter there show? would that be fair?)
2- they offer employment
3- they offer a demo, ( why should you be able to listen to there displays if you plan on buying online, is that fair?). How about you place a deposit on a demo?
These comments by myself are quite far fetched but displays and show ect.... cost money. The income the store makes helps cover cost of things.
Id go as far as saying that 95% of all people who have bought online have visited a local shop to bleed the salesmen for info and a demo with no intention to ever buy retail? How fair is that?
Comments?
unauthorized etailers are [img]graemlins/bs.gif[/img]
3-
How many times do you as a salesman in a store waste you time helping some guy that soaks you for information and then goes and buys it from an unauthorized etailer?
The dealer in canada has quite a few things they offer .
1- all the shows they put on at there own expense(how would it be if the retailer made you show a valid reciept from a shop to enter there show? would that be fair?)
2- they offer employment
3- they offer a demo, ( why should you be able to listen to there displays if you plan on buying online, is that fair?). How about you place a deposit on a demo?
These comments by myself are quite far fetched but displays and show ect.... cost money. The income the store makes helps cover cost of things.
Id go as far as saying that 95% of all people who have bought online have visited a local shop to bleed the salesmen for info and a demo with no intention to ever buy retail? How fair is that?
Comments?
unauthorized etailers are [img]graemlins/bs.gif[/img]
3-
This is not directed against the authorized and honest e-tailers. It is an open forum in which to discuss relevant issues regarding topics such as this. If someone has had an unfortunate experience with an e-tailer, authorized or not, they are free to post up their comments. Any e-tailer or retailer would want to know about bad exposure. What I have been asked to do may have some significant impact in the industry for the authorized retailers and e-tailers alike.
0 Watt CAFz'r
Joined: Mar 2004
Posts: 34
I have kind of a question. Where do these etailers get their stock from? The only way I can see them making money on this stuff is if they're either buying directly from the manufacturer or it is in fact all refurbed stuff, in which case they still must have a connection wtih a distributor right? Seems that most prices on ebay are wholesale.
Speaking as a consumer, and someone who's new to the car audio market and about to make a few purchases to get my system going, I'm faced with the temptation of buying online. I did just buy an Audiocontrol Three.1 off of ebay, but it was a used one from a private seller. I know what I'm getting into in buying it used, and I accept the risk. Everyone buys used cars right?
But I know that's not the same as an e-tailer and I'm on a tangent here. The thing that would get me to buy from an e-tailer is the fact that the shops in my area that carry the brands that I want to purchase have been less than helpfull I find. I have been in and out of every car audio store in my area (that I know of) at least twice checking out prices, models, features etc, and not once has any of them offered demo them to me, or really tried to show me why their product stands out. I have no problem with a salesman trying to sell me something if in fact the product really has something to show.
Another example continuing on...up until yesterday I was convinced that I wanted a JL system because they seem to have a good rep and the shop I used to deal with in Winnipeg told me what their retail sticker price is. I decided that I wanted to buy locally though (Waterloo) and when I went into the shop here today after work, I told the guy I had been shopping around and that I'm looking for his best price. Well, not only was his sticker price $50 over the price from Winnipeg, he only knocked $20 off the price. I give this example to combat the idea that the shop spends time doing things for the customer before and after making the sale. I walked in there and told him that I'd buy the amp and sub right there if he gave me the price that I wanted and he said it wouldn't be worth it to him do it. Now, I don't know the wholesale prices on the items, but my guess is he would have still made money on my purchase after about 5-10 minutes worth of sales talk. Not bad in my books. I guess it just wasn't the margin he's used to.
Anyway, I don't want to give the idea that I'm pro-e-tailer, I just wanted to kind of play devil's advocate, and show you the choices that a new consumer has. One way or another, I'll buy from an authorized dealer for my amps and speakers, or I'll buy used from a private seller.
-dyno
Speaking as a consumer, and someone who's new to the car audio market and about to make a few purchases to get my system going, I'm faced with the temptation of buying online. I did just buy an Audiocontrol Three.1 off of ebay, but it was a used one from a private seller. I know what I'm getting into in buying it used, and I accept the risk. Everyone buys used cars right?
But I know that's not the same as an e-tailer and I'm on a tangent here. The thing that would get me to buy from an e-tailer is the fact that the shops in my area that carry the brands that I want to purchase have been less than helpfull I find. I have been in and out of every car audio store in my area (that I know of) at least twice checking out prices, models, features etc, and not once has any of them offered demo them to me, or really tried to show me why their product stands out. I have no problem with a salesman trying to sell me something if in fact the product really has something to show.
Another example continuing on...up until yesterday I was convinced that I wanted a JL system because they seem to have a good rep and the shop I used to deal with in Winnipeg told me what their retail sticker price is. I decided that I wanted to buy locally though (Waterloo) and when I went into the shop here today after work, I told the guy I had been shopping around and that I'm looking for his best price. Well, not only was his sticker price $50 over the price from Winnipeg, he only knocked $20 off the price. I give this example to combat the idea that the shop spends time doing things for the customer before and after making the sale. I walked in there and told him that I'd buy the amp and sub right there if he gave me the price that I wanted and he said it wouldn't be worth it to him do it. Now, I don't know the wholesale prices on the items, but my guess is he would have still made money on my purchase after about 5-10 minutes worth of sales talk. Not bad in my books. I guess it just wasn't the margin he's used to.
Anyway, I don't want to give the idea that I'm pro-e-tailer, I just wanted to kind of play devil's advocate, and show you the choices that a new consumer has. One way or another, I'll buy from an authorized dealer for my amps and speakers, or I'll buy used from a private seller.
-dyno
I think you have some good points that more retialer need to be made aware of. For som eof us in the smaller cities like mine, we need to work very hard with every customer to help them make an educated and informed buying decision.
It seems that some of the shops you went into have employees who are there for a paycheck and nothing else. They have themselves a McJob. "order please". I feel for you about this bad experience, it is how I got into this industry 16 years ago and the decision on where to open my first store 8 years ago came from exactly the situation you described with a local dealer. This dealer is now out of business in my city.
In the larger cities it is easier for the salesperson to turn business away, especially when he loses his commission for taking a deal that "is not worth it". A dealer must cover the cost of running his business first, that is the point where it is "not worth it". Some dealers in the larger centers know the value in return business and can make up for giving a deal down the road, seems the ones you ran into did not consider this.
Again this is not meant to direct attention to the merits and pitfalls of buying used equipment or E-bay at all, that is a totally different issue altogether.
The unauthorized e-tailer does not buy his equipment from the manufacturer at all. He buys it from Pete's Audio house who is authorized. Now Pete is not supposed to sell his equipment to any other retailer, this is trans-shipping. Warranty goes to the original customer only, it is not transferrable at all. Pete has a legal agreement that he will not sell brand x,y,z, to any other retailer and failure to abide by this usually lands Pete in hot water. Well Pete decides to sell it anyhow to whoever he wants and hopes he won't get caught, well he will.
Joe's Audio house is an e-tailer and buys his equipment from Pete. Joe's sells it to you and you assume that you have all the good things that the authorized dealer does. This is incorrect and Joe is under no obligation to tell you otherwise. Joe sells it at whatever discounted price he wants and has no obligation to serve you in the capacity that the manufacturer and authorized dealer must. It is buyer beware when dealing with the e-tailer. One unauthorized e-tailer that I am in a pissing contest with right now has made it perfectly clear that they had to shut down their old name and site and start up a new one, I wonder why. Is it because they got caught? Yes. Is it because they pissed off too many customers? Yes. Is it do to more facts that we do not need to get into here? Yes. Keep the comments coming please guys. Again, this is in no way directed to the authorized e-tailers and e-bay purchases, nor is it directed as SPAM.
It seems that some of the shops you went into have employees who are there for a paycheck and nothing else. They have themselves a McJob. "order please". I feel for you about this bad experience, it is how I got into this industry 16 years ago and the decision on where to open my first store 8 years ago came from exactly the situation you described with a local dealer. This dealer is now out of business in my city.
In the larger cities it is easier for the salesperson to turn business away, especially when he loses his commission for taking a deal that "is not worth it". A dealer must cover the cost of running his business first, that is the point where it is "not worth it". Some dealers in the larger centers know the value in return business and can make up for giving a deal down the road, seems the ones you ran into did not consider this.
Again this is not meant to direct attention to the merits and pitfalls of buying used equipment or E-bay at all, that is a totally different issue altogether.
The unauthorized e-tailer does not buy his equipment from the manufacturer at all. He buys it from Pete's Audio house who is authorized. Now Pete is not supposed to sell his equipment to any other retailer, this is trans-shipping. Warranty goes to the original customer only, it is not transferrable at all. Pete has a legal agreement that he will not sell brand x,y,z, to any other retailer and failure to abide by this usually lands Pete in hot water. Well Pete decides to sell it anyhow to whoever he wants and hopes he won't get caught, well he will.
Joe's Audio house is an e-tailer and buys his equipment from Pete. Joe's sells it to you and you assume that you have all the good things that the authorized dealer does. This is incorrect and Joe is under no obligation to tell you otherwise. Joe sells it at whatever discounted price he wants and has no obligation to serve you in the capacity that the manufacturer and authorized dealer must. It is buyer beware when dealing with the e-tailer. One unauthorized e-tailer that I am in a pissing contest with right now has made it perfectly clear that they had to shut down their old name and site and start up a new one, I wonder why. Is it because they got caught? Yes. Is it because they pissed off too many customers? Yes. Is it do to more facts that we do not need to get into here? Yes. Keep the comments coming please guys. Again, this is in no way directed to the authorized e-tailers and e-bay purchases, nor is it directed as SPAM.
