PerryB

Well, the online places can make $10 on a head unit but sell 1000 of them whereas a b&m, authorized shop, has to make, say, $100 on a deck since they are not going to have the volume(and they will have higher costs of doing business).

I think many manufacturers pay alot of lip service to their authorized dealers about trying to stop unauthorized sales. They talk a good game, yet their stuff is d out EVERYWHERE on the net(I think manufacturers could do a much better job stopping unauthorized sales if they truly wanted it to stop).

A good friend of mine works for an alpine/jl dealer(he used to work at the local jl/eclipse dealer that is owned by good friends of mine, then he moved), and he said the alpine rep is a complete b1tch. Anyway, all she cares about is getting them to place huge orders, and if they don't, she threatens to pull the line(which my friend would be perfectly fine with, but the owner just re-upped with them for 1 more year). Now, if that is the attitude of the reps, I can see how shops just keep placing huge orders to keep the reps/manufacturers happy and then just transship or sell it online so they don't sit with a warehouse full of product. The reps/manufacturers are happy because sales are up, and the small authorized dealers find other places to move the product. I suspect that is where places such as ikesound, thezeb.com, etc get much of their product.

Many manufacturers simply don't want to hear about slow sales months, etc. I understand it is all a business, but I certainly think that if manufacturers are going to tell their authorized dealers "how important they are," then they shouldn't insult their intelligence by pressuring them into placing orders for a ton of stuff that the shop will probably never be able to move.

BTW, my friend's shop doesn't trans ship.

[ March 10, 2004, 07:31 PM: Message edited by: PerryB ]

KillerGrand

I work as a manufacturer's representative in a field completely unrelated to car audio.
I have much experience in sales and in retail.
I have found that if a store (doesn't matter what product(s) they are selling) distinguishes themselves by:
- Being honest
- Taking a fair profit
- Not screwing the uneducated (but informing them instead)
- KNOWING HOW TO SELL. Most car audio stores that I have been to (I travel a lot and have been to many all over North America) do an extremely poor job of selling their products. If all car audio salespeople were decent at what they do, internet sales wouldn't be as big a factor because they could ensure the customer is well informed of the value, services and products that the store provides. Products can be purchased anywhere. People buy from people and if a consumer likes a salesperson in a store, knows he is getting a fair price and will get service should the product fail, that consumer will most definitely pay a little more for that product.
If that value isn't there (or not sold to the end user), then there is no differentiation between a bricks and mortar shop and an internet retailer.
Do all car audio stores support the industry? Not even close. (Why should this matter to the average car audio buyer?)

The key to all of this is to sell and install the product well and in turn, the customer will get what he pays for.

MR2NR

iTrader: (66)

Knowing how to sell is a very valid point, it is one of the reasons why I have survived in a area with a depressed economy and 3 big box stores. Finding a customer needs not wants is paramount in this business. I do not allow a spiff or commission structure in my stores in order to further the best interest of the customer. When we do this, it furthers the best interest of the store, that is building a long term profitable relationship with the customer, something an e-tailer can care less about.

pinhead

as in choosing companys more wisely
im refering to all the large japaneses companys
the units they sell are what most consumers are looking for
as in letting them know
they already know its one of the industrys dirty little secrets that knowbodys suppost to find out about

CaptDeth

Very false comment there that "an e-tailer can care less". Plain and simple, word of mouth is what brings the majority of customers to either of our stores. Word of mouth is also what discourages people from coming to our stores. Believe me when I say that one bad costomer experience (whether valid or not) travels across the internet, and is taken as valid by more people, faster than in a "local" shop setting.

Kool

iTrader: (1)

Maybe retailers should band together and boycott selling the products of manufacturers that do not punish wholesalers for selling to unauthorized e-tailers.

I agree with Derrick that this is a short-term problem because e-tailers can only compete with eachother based on price. They will continue to fight on price until there is no profit left for them.

Moreover, if you look at the overall market, most customers are very uninformed. Most of these consumers are not willing to purchase from the net because they have no idea what they are buying and also no idea how to install what they are buying. I believe the people that purchase online are informed customers who know what they are doing. Most of these consumers are the ones that are on this and other car audio forums. However, the number of customers who are uninformed far outnumber those that are informed. Therefore, you are complaining about a small portion of the market that would rather forego customer service and a warranty for a lower price.I think you have to find another way to appeal to their needs because what you provide them in-store just isn't what they value.

[ March 10, 2004, 08:59 PM: Message edited by: Kool ]

slow/n\low

Very false comment there that "an e-tailer can care less". Plain and simple, word of mouth is what brings the majority of customers to either of our stores. Word of mouth is also what discourages people from coming to our stores. Believe me when I say that one bad costomer experience (whether valid or not) travels across the internet, and is taken as valid by more people, faster than in a "local" shop setting. </font>[/QUOTE]The debate is about NON-authorized etailers, are you not authorized, if so it doesnt apply to you.

CaptDeth

Very false comment there that "an e-tailer can care less". Plain and simple, word of mouth is what brings the majority of customers to either of our stores. Word of mouth is also what discourages people from coming to our stores. Believe me when I say that one bad costomer experience (whether valid or not) travels across the internet, and is taken as valid by more people, faster than in a "local" shop setting. </font>[/QUOTE]The debate is about NON-authorized etailers, are you not authorized, if so it doesnt apply to you. </font>[/QUOTE]Sorry, was using myself as a sort of example. Reality is that I could sell all un-authorized equipement and be just as dedicated/reliable.

Reality for me at this time is I know more local shops that have opened to mearily give themselve and friends deals than internet dealers.

There will always be "fly-by-night" companies/shops in every industry...you just have to do your best to make sure people are aware of that.

PerryB

I think the guys at the local shop do an excellent job of selling their product(they know the product, take the time to explain everything to the customers and don't try to sell somebody a $500 head unit when a $200 head unit will serve their purpose), but there are always going to be people who will come in, pick their brains over and over, listen to equipment(actually hear/touch the W7s)...and then go buy it online. There are people who, no matter what, will never value the expertise, availability of product, or factory warranty. They want the equipment for next to nothing, and then if something goes wrong, they want the shop to send it in under warranty.

Being good at sales does help, but it is not a cure all, ofcourse.