[rec.audio.high-end] Confessions of a high-end service mgr.

ih8rlf0p@serss0.fiu.edu (jim stafford) (03/22/91)

I received a lot of responses to my original post, in which I posted a dubious
explanation of dealer profit margins.  Basically, what I meant by 40 points is
you pay $600, you sell for $1000.

I had also mentioned that the only piece of eqpt that should show up at your 
house in an unsealed box was a turntable.  That's because theoretically, 
someone spent several hours setting it up.  I didn't mean to say that a demo
turntable is acceptable.

I've followed the thread on this discussion, would just like to throw a few 
more cans of worms on the fire.  I realize that no two stores are exactly the
same, and that people and policies are going to vary.  And yes, of course a
store is a business and has to make $$ to survive.  But having been behind the
scenes, I can tell you that the notion of a "relationship" with a dealer is
about as beneficial as having a relationship with a yeast infection.  Say to
yourself "its only a retail store" 100 times.  As a retail store you get:

Pushed to buy what's in stock, not what you want.

A small percentage of the products out there.

Repacked eqpt at retail (yes, I've done it, and I challenge anyone to detect
one of my better efforts...but if one of the salesmen tried to really screw
someone, I'd do something about it.)

Misleading demo's...using components far better than what the user may own
(you should hear a pr of $200 B&W spkrs on Goldmund electronics, MIT CVT cable,
using a cheap NAD cd player through a Wadia; of course the speakers are pulled
4 ft out from the walls, though the owner will put them in a bookshelf.)

These are not things that happen at just one store...I've talked to many people
in the industry and they happen quite often.  Repacks are extremely widespread.
It's impossible to keep a quantity of each model, in different finishes, etc. 
in stock at all times.  Special orders (esp. a single unit) cost more, if not
for the quantity discount (which can be significant), then for the freight.  
Also, the terms of purchase usually provide for a discount if the goods are
paid for in 30-60 days.  Besides, how many Goldmund References can you afford
to buy in the first place?  So rather than order one, get out the black magic
marker (I recommend Sanford Sharpies...cover those scratches really well, and
don't have that obvious purplish cast) and the packing tape.  It's time for...
Repack Man!

Keep in mind that the customer of choice in a high-end store is not the true
audiophile.  Rather, it's the rich Dr.-lawyer type that just built a new home
and wants the be$t.  Audiophiles take too much actual work, and are a harder
sell.  After someone walks in the store, one of the salesmen looks out the 
window, hoping to see German.  If you want to get their attention, make sure
to bring a portable phone, and arrange to get a call so you can say something
like "well, if it hits 16 and a half, roll 40% of the preferred into it and
call Tokyo".

The biggest problem with highend is the complete subjectivity of any means
of evaluating it.  You can measure the performance of a computer and make 
some kind of comparison of it with another computer of similar type.  Audio
has so many funny little interactions: cables, acoustics, electrical power,
etc.; each of which is a source of confusion for the customer and potential
profit for the dealer.  A lot of this is just bandaids for poorly matched or
improperly setup equipment.

If you've had good service from a dealer, and are happy with the way they've 
treated you, then hang with them.  Where I worked, there were a handful of
customers that got preferential treatment, and it was more a matter of
personality than being willing to pay retail.  (A ten or twenty slipped to
a technician for good service can be a good investment.  Unless instructed
otherwise, I gave people my honest opinion on eqpt when possible.)

Donations still cheerfully accepted!

Jim (jimbo) Stafford	| "You've got to be very careful if you don't know 
ih8rlf0p@serss0.fiu.edu	| where you are going, because you might not get there"
								Yogi Berra