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Advice wanted: Taking over an HiFi Store

lashto

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...Better to start from scratch if you believe there's a market for this, and you have the right products and knowledg/service to offer...
I would not bet on the existence of that "market" @fivepast8 .
People who know about audio won't need much advice from a shop owner. They know what they want and also know where to order cheap/er.

And just look around ASR. Many of us are serious cheapskates looking for the best deal and complaining loudly about the amazing free stuff that we get here. Who would you want us as customers?! :)
 

Purité Audio

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Not only cheapskates but envious of those audiophiles who have spent thousands on cat litter, network switches … etc etc.
Keith
 

lashto

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Not only cheapskates but envious of those audiophiles who have spent thousands on cat litter, network switches … etc etc.
Keith
do not necessarily agree with the word "envious" but right now I can surely use some banker's budget for silver cables :)

I want to try a pair of single drivers but found no way to demo anywhere close. Not the biggest cheapskate but $10K is way too much to risk without audition. They suposedly have a try&return policy but it's still too rich for me..
 
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kongwee

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Takeover the company, do all the ASR stuffs, ABX, take their testimonial, close the shop, announce to the world, it is a scam. It is good for humanity.
 

dshreter

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I think there’s always room in the world for a business that has a unique and compelling vision. Before consideration of buying the shop, you need a really clear perspective of your vision for the business, the products and services it will offer, what differentiates it, and how it will make money.

Once you know that, you can figure out if buying the shop is compatible or synergistic to your vision. The traditional hifi shop is a mature market at best, so you stand no chance unless you are bringing meaningfully new point of view to your market and that people will be aware it exists.
 
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fivepast8

fivepast8

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I would not bet on the existence of that "market" @fivepast8 .
People who know about audio won't need much advice from a shop owner. They know what they want and also know where to order cheap/er.
Who would you want us as customers?! :)
I may be a bit naive. ASR is certainly not the "market" that would rely on a brick and mortar store or advice. Nonetheless, I can imagine that Zurich has a sufficient population who would love something nice, easy to use but don't want the hassle of reading up on everything and don't even have the time to set things up properly.
I think there’s always room in the world for a business that has a unique and compelling vision. Before consideration of buying the shop, you need a really clear perspective of your vision for the business, the products and services it will offer, what differentiates it, and how it will make money.

Once you know that, you can figure out if buying the shop is compatible or synergistic to your vision. The traditional hifi shop is a mature market at best, so you stand no chance unless you are bringing meaningfully new point of view to your market and that people will be aware it exists.
Yes, we are in the process of doing that. This is a profitable, well run business and has been doing steady turn-over, margin and very little fluctuation. So it is truly mature as you describe and the question will be how to expand the offerings to slightly re-adjust the focus without throwing out the baby with the bath water. For example, the owner very much loved my idea of miniDSP integration, room correction etc. But he has shied away from it as he understands too little.
Not me. 6 pages of good natured advice… makes me think things are gonna be alright. Not for traditional hifi shops, but things.
Yes, very much my own feeling.
Much like farming in the USA... It works, for a while, if you start with a large fortune and want to convert it to a very small fortune
Interesting view: the US is the third largest producer of agricultural products and the largest exporter world wide, thus it's competitive and dominating.

_________________________________________________________________________
I have received all transactional records and can do a detailed margin analysis now by product group, by brand, by sales channel etc. The biggest red flag that I have seen thus far is the dying business model (?), "cultural" misalignment between me and the owner (and his customers) and my lack of B-C experience. It will be interesting to dig into the numbers and understand why the shop is steady and nicely profitable. As a next step, I will have a small business plan. If I am still enthusiastic I will work in the shop for a while and observe.
 

Rottmannash

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I did a change from a professional b2b type business to more a retail situation with one of my passions....might depend how much money you want to throw at the passion :). There can be a difference between the passion part and making a business out of the passion part. Would the passion in this case be the sheer joy of good audio gear or selling stuff you don't even believe in (or trying to convince one of those "audiophiles" to think clearer?). I don't think I could sell silly audio gear, and in this case that doesn't sound like a good business plan particularly.
dumb question- what does "b2b" stand for?
 

dougi

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rwortman

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I would say that buying a business with an established customer base with the intent of teaching those customers how stupid they are is not a recipe for success. Might as well use the money to start a nice big bonfire.
 

Rja4000

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Hi
I've spent a lot of time in HiFi shops when I was young.
I've also been working in some myself.

I strongly disagree with the fact that people don't want to be educated.
They of course don't want you to show a paternalist or condescending attitude, but that's very different.

And they don't blindly trust shop owner either.

What customers want is to be guided, because they don't know, and internet is of no help.
That's why they come to a local shop.
And to be able to see, hear, and touch the equipment (in that order, I think).

That being said, what other objective value could you bring to customers that you will be able to value ?
Meaning: that won't pump all your time, to see the customer ultimately buying from internet for a cheaper price ?

After sale service is one, but not that important (and costly + random, since you rely on others for the quality and speed).

Loudspeakers (and headphones) listening is key, in my opinion.
Installation and room correction in situ is paramount as well, of course, and should be emphasized. (And this kind of service is very high end.)
Proper advice for music source / way of distributing it is also worthwhile.
Also, partnership with domotic company may be great added value with higher end customers, IMO.
Tuning and set up of turntables, if that's what sone customers want, can be a key differentiator, since that's all but easy.

For electronics, how to earn (and not loose) money ?

Reputable brands with good electronics but high ease of use will allow you some premium price.
You probably don't need (nor want !) to keep 100 references in stock, and you may explain your choices by measurements and objective reasons, for sure.

Showing customers that you're able to reproduce the measurements in house, in some basement secret lab, would, for sure, give some credit to your assertions.

Position yourself as a helper in the seek for better audio value, by organizing blind tests, and educating people on hiw to compare and what to listen to.
Be convincing by being an advocate of objectivism, but always allow audition to confirm.
Because people will want to listen, anyway, and if don't allow it, they won't trust you.
 
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Mart68

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let's say you have a regular customer who has just upgraded his speakers. Now a month or so later he is back in the shop looking for another upgrade, but not speakers.

What do you sell him? Or do you tell him, 'The only thing that will improve your system further is even better speakers.'?

That's not what he wants to hear. He wants a better DAC, better cables, one of the magic boxes he has read about in the mags or on the internet. If you can't or won't sell him that he will go elsewhere and won't come back. Okay maybe you can sell him on DSP if he doesn't have it already, but otherwise you're stuck. I think this is going to be the problem.
 

sergeauckland

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let's say you have a regular customer who has just upgraded his speakers. Now a month or so later he is back in the shop looking for another upgrade, but not speakers.

What do you sell him? Or do you tell him, 'The only thing that will improve your system further is even better speakers.'?

That's not what he wants to hear. He wants a better DAC, better cables, one of the magic boxes he has read about in the mags or on the internet. If you can't or won't sell him that he will go elsewhere and won't come back. Okay maybe you can sell him on DSP if he doesn't have it already, but otherwise you're stuck. I think this is going to be the problem.
That was exactly my problem when I had the shop in the 1980s. They didn't want an upgrade, they wanted to spend some money, and as I wouldn't take it, as it wasn't necessary, they went elsewhere. Saw this over and again, but my engineering brain set couldn't understand that.

S.
 

Snarfie

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Hi
I've spent a lot of time in HiFi shops when I was young.
I've also been working in some myself.

I strongly disagree with the fact that people don't want to be educated.
They of course don't want you to show a paternalist or condescending attitude, but that's very different.

And they don't blindly trust shop owner either.

What customers want is to be guided, because they don't know, and internet is of no help.
That's why they come to a local shop.
And to be able to see, hear, and touch the equipment (in that order, I think).

That being said, what other objective value could you bring to customers that you will be able to value ?
Meaning: that won't pump all your time, to see the customer ultimately buying from internet for a cheaper price ?

After sale service is one, but not that important (and costly + random, since you rely on others for the quality and speed).

Loudspeakers (and headphones) listening is key, in my opinion.
Installation and room correction in situ is paramount as well, of course, and should be emphasized. (And this kind of service is very high end.)
Proper advice for music source / way of distributing it is also worthwhile.
Also, partnership with domotic company may be great added value with higher end customers, IMO.
Tuning and set up of turntables, if that's what sone customers want, can be a key differentiator, since that's all but easy.

For electronics, how to earn (and not loose) money ?

Reputable brands with good electronics but high ease of use will allow you some premium price.
You probably don't need (nor want !) to keep 100 references in stock, and you may explain your choices by measurements and objective reasons, for sure.

Showing customers that you're able to reproduce the measurements in house, in some basement secret lab, would, for sure, give some credit to your assertions.

Position yourself as a helper in the seek for better audio value, by organizing blind tests, and educating people on hiw to compare and what to listen to.
Be convincing by being an advocate of objectivism, but always allow audition to confirm.
Because people will want to listen, anyway, and if don't allow it, they won't trust you.
+1

He also could invite not only new but also the existing customer base to demonstrate for instance several RC solutions that makes a hugh difference and/or introduce his other idea's.

Basically I would work their as an sales person for a couple of months to get a feeling. From their on you you get the hang (fun) of it or it is a bummer.
 
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