Why is there no price competition in the hi-fi business?

[James]

I rarely go tyre-kicking and waste retailers' time. I might pop in for a look, and if something is already set up for a low-effort demo, then I might spend a couple of minutes to humour each other.

But when I'm genuinely looking to buy something, the first thing I'd do is ask about the price. If it's within my affordability ballpark, then I'll give it a decent demo. I might even take it home for a few days. Once I am satisfied that is what I want, I'll ask if there is any movement in price. If not, I'd pay the asking price and be done with it, as I had already decided I can afford it. Anything less is just icing. More often than not, there is a small movement or some sweetener. I'd never go to another retailer to see if I can get a better deal.

It's basic human decency and respect.

 

[Mole Man]

I’d actually argue that the apparent lack of competition on purely price has ended up benefitting the repeat hi-fi purchaser in the long run. I can think of a handful of good, established dealers (definition: somewhere between 10-40 years in business) in striking distance from me in Greater London/Herts/Bucks borders. This steady situation means that when my once in a decade buying pattern renews there are good dealers with great stock in depth, properly trained and experienced staff and good dem facilities on hand.

 

[effinity]

To maximise the potential discount ensure all your demonstrations are conducted at the dealer that doesn’t discount so when you decide on what you want the discounting dealer has the minimum effort in shifting the box.

I’m guessing you’re being ironic but highlighting one detestable consumer trait!

When I’ve bought new stuff I’ve often taken an educated guess on how it will perform and if it’s a great discount am prepared to take responsibility and buy without taking any of the dealers time for a demo or anything else other than card details over the phone.

It’s worked for me and I can’t think of one item of kit I’ve been disappointed with. I do feel I’ve got a good room mind you and I did all the experimentation with used and ex demo etc and did sometimes get it wrong mainly because I hadn’t figured out the room.

All part of the fun though and buying used gear unseen in the metal and unheard is a great learning and creates confidence for future ‘blind’ buys, taking responsibility and wasting no ones time.

Most dealers I’ve met are decent people and have unique skills and expertise.

Respect for surviving in a tough market!

 

[cjyosemite]

I cannot comment on buying a cartridge on line as I always used a dealer but in 45 years of buying hi-fi kit I have only once paid the full retail price & that was because my original purchase did not work well with my speakers & they were returned to be replaced by kit I was familiar with. I still have that kit 14 yers later. Kit I have bought since then has always been after a home demo.
Perhaps you need to develop a relationship with a dealer.

 

[James]

My last purchase was a cartridge and done online. The price was plain to see, and I was happy to pay it. I was more circumspect about how it'd work out in my system, as there was no retailer in my city that I could go to for a demo. So I agreed with the seller that I could return the cartridge within seven days if I was not happy with it. Unprompted, he also gave me a 5% discount. It was, and remains, a great buy.

 

[Subito]

In the spirit of effinity’s post, I’d like to give a shout-out to the two best audio salespeople I’ve encountered over the last 40 years:
Ken Christianson at Pro Musica in Chicago http://www.promusicaaudio.com/
David Wilson at Accent on Music in Mt. Kisco, NY http://www.accenthifi.com/
They’re long-time veterans of the audio wars, and stand head and shoulders above the many pretenders I’ve run into over the decades (yes, I am an olde phart).

 

[Emlin]

Hardly a fair comparison, firstly the check out assistant is not going to have the authority to grant a discount and if it happened the be the owner or manager surely they would point out the wide range of already discounted items throughout the store and hardly fair to compare a trolley of groceries to a piece of audio equipment. You will also find that if you buy your meat from the local butcher, veg and fruit from the local greengrocers, bread from the local bakery, etc that these shops do offer a little discount, if it's £5.18 at the butchers counter he'll ask for a fiver, more of a gesture than a discount , but appreciated. This happens in small rural towns and villages IME but you may find the same thing in the markets in the larger towns and cities.

Next time my cartridge needs a new stylus, I'll give it a butcher's hook.

 

[pocketkitchen]

In the spirit of effinity’s post, I’d like to give a shout-out to the two best audio salespeople I’ve encountered over the last 40 years:
Ken Christianson at Pro Musica in Chicago http://www.promusicaaudio.com/
David Wilson at Accent on Music in Mt. Kisco, NY http://www.accenthifi.com/
They’re long-time veterans of the audio wars, and stand head and shoulders above the many pretenders I’ve run into over the decades (yes, I am an olde phart).

Dave Wilson's a great guy. Top man.

 

[Sue Pertwee-Tyr]

I’d actually argue that the apparent lack of competition on purely price has ended up benefitting the repeat hi-fi purchaser in the long run. I can think of a handful of good, established dealers (definition: somewhere between 10-40 years in business) in striking distance from me in Greater London/Herts/Bucks borders. This steady situation means that when my once in a decade buying pattern renews there are good dealers with great stock in depth, properly trained and experienced staff and good dem facilities on hand.

Also, I suspect, the more stuff gets discounted when new, the less it is worth s/h, so you lose more on it when you sell-on or upgrade anyway.

 

[david ellwood]

Another possible reason for large discounts is when a dealer knows that the item is about to be replaced by a new model in the near future.

 

[notevenclose]

There does seem to be something in the tone of certain posts on this thread which suggests hifi retailers are coining it in with huge profit margins and any refusal to offer a discount is somehow an expression of their general sense of smug self-satisfaction. (As distinct from the type of customer with an over-inflated sense of entitlement).

I've been around the audio industry for a long time, and have a number of friends and clients (the two are not mutually exclusive) in hifi retail. While I doubt any of them are considering an application for Universal Credit, I'm pretty sure none of them are eyeing a private island in the Caribbean either. And to a man, or woman, they all work bloody hard. And at the end of the day, they're running a business, in which actually making a profit is generally a good idea for all manner of reasons.

In comparison to say, the rag trade, another industry I know something about, the margins in audio are generally tiny, even in the upper reaches of the market.