Axpona 2019 Official Pics & Commentary Thread
Just a statement of fact Mike - I remember reading about your transition from It to HiFi & the reasons why - procurement Vs relationship building.
The business model you have structured is based on relationship building - you tread the fine line between achieving a profitable outcome for your business (I'll bet that's not easy - but a bucket load of fun doing something you love) whilst maintaining your personal credibility - with your customer base - within this forum (not easy when you own it) - for equipment advice (even harder when its stuff you don't sell). It is business vertical integration par excellence - with a complete control loop - not sure the ROI on your capex investment will reach acceptable commercial benchmarks - but if you love what you do & it feeds the family while paying the bills - who cares.
Thank you Rob. Everything you say is true and thank you for that. I changed from a world of large scale Enterprise IT work, working with 200 of the largest companies in the world in a B2B environment to a small, essentially business to consumer industry.
I spent 25 years writing RFI’s and RFP’s, running projects, staffing projects, working within a specific implementation methodology for $10-$100 million+ IT implementation projects (SAP, ORACLE, etc.) and today, that has changed in a dramatic way. I’m much happier dealing with people rather than portals and paper.
I had zero plans to ever sell audio equipment, but losing both my parents was a real wake up call: life is too short to keep doing what you don’t love anymore. It’s proof pudding that if you find something you love, you will be successful. I used to love IT, but the Great Recession of 2008 changed all that. IT projects and people went from being well respected in an organization to now just another cost center that was even below the HR folks!
I’ve worked hard to not pay attention to what other dealers are doing. I’ve tried to follow my own path for success. I made some big gambles in the stock market, and thankfully, they paid off to allow me to buy my store with cash and I own every single piece of equipment in the store. Manufacturers love to offer dealers terms. I tear up those term sheets. Debt is the enemy of any successful business.
Obsessing constantly over the brands to carry has really helped keep me focused on success.
I admittedly have failed at a few brands: Vandersteen and ClearAudio. Those brands didn’t fail me, I failed them. I could make excuses like the competing products in the store just offered more appeal and value, but the facts are the facts. You have to be able to take the bad with the good. Admit when it’s time to move on. On the other hand, other brands have failed me: Soulution & REL. But those are both stories for another day.
I adore working with my customers, even the ones who change their minds 9000 times. Why? Because I was the exact same way when I was a consumer, so I totally get the customers mindset. Most of my manufacturers are a delight to work with and most are consummate professionals.
Headaches? A few dealers. There’s a few out there who whine, complain, bitch, moan and tell lies. It bothered me 5 years ago, today it’s just good for a laugh. And trust me, I’m not the only one laughing at them. It’s funny, if they spent as much time on improving their own business as they do about bitching about other dealers, imagine the success they could have? How do I know this? Because several dealers call me to bitch about other dealers. My response? Who cares? Focus on your own shit.
This is an industry going through some interesting changes. Those who like to proclaim “high end audio is dead!”, clearly haven’t visited a major audio show or been on my side of the desk. Hell, I had to hire an employee just to keep up.
The industry does need to make some bold changes to strive and ultimately survive. The industry is clawing and scratching in its struggle with the realities of the online world. But this is an industry that needs to truly be online as B&M stores are not on every street corner - at least for the most part. If I can buy a car from a vending machine, I should be able to buy a tube phonostage online from a well known manufacturer. And those manufacturers who remain strict with territories and an aversion to online, are ultimately fighting with one hand tied behind their back. Why? Because their competitors are moving forward.
The prices in high end audio is always a hot topic. I will say, with so many more new companies in the industry, we are seeing some exciting new products at reasonable prices. I tried to mention a few in my show report. And it’s ultimately a good dealer who will steer their customers toward the best fit for their room, budget, etc.
Sorry for the long post. I’ll fuel up and get cracking on the remaining rooms. Thank you everyone for looking and reading!
