Sign of the times: local High-End audio dealer is out of business

My local high end dealer is shutting his doors next week. Sound and Cinema after being in business for over 25 years is closing. The owner Ed Scruggs was one of the good guys, always made you feel welcomed and never tried to “sell” you on everything. Maybe if he was more pushy the story would have been different.

He moved ten years ago from his Dunwoody, GA location to Alpharetta, GA, expanding to take advantage of the booming Home Theater market. It would be simple to blame it on the economy but I think it was more than that.

I've been watching the store slip over the last 2 1/2 years. His stock began to dwindle. I think he realized that unlike the audio crowd, home theater buyers make the initial purchase and that's probably the last time you see them.

Ed really is the last of a dying breed, always providing good service and a comfortable environment. I’m sad to see him go.

 

always sucks to hear about a B&M store closing.

 

One of my favorites, Lev's Audio and Video in Milwaukee is also closing his doors. It sounds like Lev's followed the same arc as Ed. About 7 or 8 years ago, Lev moved from his location in Shorewood to a larger place in the Third Ward, also to focus more on high end video setups in one room, audio in another room. I have also watched his business struggle over the last couple of years, as video peaked while audio declined.

Lev is also one of the good guys. He would take as much time selling an entry level TT and cart, or bookshelf speakers as he would selling a super expensive speaker like the Dynaudio evidence.

 

From the title, I thought your weed dealer was in the big house. Glad to hear it's just another retailer out of business. Some things you can always buy on-line; for others, it's direct marketing only.

Seriously, this trend is very sad. There were once three stereo stores within 20 miles of my house. Today, there are none. I sorely miss the days when I could waste a Saturday afternoon listening to new equipment and messin' with the commisioned sales guys. I trust Fremer and other reviewers in the business but nothing beats standing in front of a stack of speakers, remote in hand, ready to make the whole store stop and listen to my favorite song.

Someday, we'll tell our grand kids about the "good ole days" when you could walk in a store and buy a new stereo. Of course they won't be able to hear you because they'll have hearing damage from the super loud "music" on thier ipods but that's a whole 'nother rant.

 

And hopefully buying something once in awhile. One of the real problems B & M stores have faced in recent years is that even among the dwindling number of customers who still like 2 channel audio, they would stop by to hear some gear and buy the same stuff online somewhere. It isn't fair to the B & M places as the online stores just ship the boxes, and don't need to pay rent on expensive retail space or spend hours with customers who may or may not buy something.

The way I see it, the B & M places have been caught between a rock and a hard place. Stock too much affordable, but still decent gear and you risk moral hazard of having customers take up your time, then buying the same thing for less online. Or stick with much more upscale brands not widely available or discounted online, and you severely limit your customer base to well heeled and experienced audiophiles.

There is nothing these guys could do but try to stay one step ahead and only stock gear that is somewhat more exclusive, but I pointed out to Lev once recently that my first purchase from him in the 90s was not super high end gear but rather a pair of speakers for $400 and that if he had nothing that retailed for less than $1,500, I probably would have walked out of the store, which was apparantly what people were doing in recent years.

 

Unfortunately that's more common than not. Ed used to ask why I didn't stop in once in a while? He said that he only saw me when I was buying something, even then I sometimes would just call up and tell him to order whatever I wanted and just go in to pay for it.

I would tell him that his time is money and I didn't think it was fair to waste it.

 

This has been happening for years I think. There used to be many more hi-fi retailers on Tottenham Crt Rd here in London. One of the better ones Hi-Fi Experience closed its door when the lease ran out. The renewal terms were too high. Not sure what is there now. I think I drug store opened but that closed.

There are still Audio Visual stores on that road but Hi-Fi isn't a priority. They are all switching more and more to mainly audio visual.

Still I'm pretty lucky as I have a couple that I can go to for serious stuff.

Eddie

 

It is unfortunate that the good B&M stores that are run by experienced and knowledgeable folks are going out of buisness. This face to face type of audio dealer is so important, especially the ones who will take the time to explain things.

 

We have a few HIFI stores left and the displays have definitely shifted to Audio Visual.
Even at that, the brands that they carry is getting to be more mid-fi and the on hand inventory is shrinking.

The parking lots look pretty bare too when you drive past.

It is a very sad to see this happening. But what can you expect, with all the internet deals and other options available its a tough business to be in. These days it's just tough to be in business no matter what. Even the local Sweets shop is hurting for
business. There is a Rite Aid a Walgreens and CVS pharmacy within a stones throw.
The competition is killing the mom and pops.

 

A few years ago we had three 'high-end' stereo stores... first one closed, then another and the other switched to HT gear.

Late last year, the last one standing 'Classic Stereo' closed their doors. As far as I know now, Grand Rapids no longer has a retail store for high-end audio. Classic Stereo used to have a collection of used gear that was always fun to look at - of course now I usually buy via Audiogon for my high-end stuff and there is a local record shop that carries some used mid-fi gear that I check out once in awhile - sometimes KEF or PSB speakers float through.

 

I still have three hifi stores near where I live. However, I find them more and more difficult to deal with. Often the stuff I want to demo or look at isnt available or they dont allow it now. Or the stuff they do have i can get significantly cheaper ordering online.

15 years ago I could walk in and demo anything for as long as I liked but now its all too much effort for them.

 

It is a very tough business for a specialty market. They hardly advertise, very special market where there is usually no discount although I am very sure there is a good profit margin involved.

Good firms are helping thse B&M stores by only selling via them... like B&W and I believe their affiliate lines are the same too.

If I were in business, I'd have to be multi invested... especially the store building if possible. Owning rather than leasing is paying for commercial real estate that goes into your pocket rather than your landlord. Yes, it can be expensive but there is no real reason why you need to be in prime location when off prime location will do... although still in good community. It is more like not on the highway but smaller slight off path location where you can buy one.

Then again, it is still a niche market where there cannot be too many clustered together. Perhaps some self help seminars will keep traffic moving in.

 

My local indy store is still around, I am lucky. Boulder County is a very affluent communtiy with a higher than average interest in music and video.

They actually had the best price on my table when it came time to buy: better than online. In addition with something like analog gear it is a huge plus to buy locally: they did my initial tt set up, and have installed two carts for me since.

C

 

Well, it's very simple. Online shopping offers a much wider selection and better pricing. You sometimes lose the ability to try out equipment, though.

 

is that used audio place in Boulder still there? - I can't remember the name but it was located on Pearl Street back when I lived there (in '90). I was a poor twenty year-old when I used to drool over the tube gear they had.

 

In the 50's and early 60's The Corning Building Company offered a row of 6 mahogony "Listening Booths" where they would preview any vinyl record while you sat down on a reasonably comfortable chair - if you liked it you bought it. (Borders tried it for a while with a walk-up headphone system.)

Really quite amazing when you consider the tiny profit margin on a record in 1959 - but that was in the Customer Service days. Days when Pontiac offered over 5000 variations on their cars - and were delighted to special order - and the workers were delighted to have a job and buy a house and have some medical benefits for the kids. The days before Toyota hired the po'fok in Mississippi and Alabama at low wages and no benefits.

Today even the "high-end" merchants in every market segment have realized "market saturation" - that situation where there are so many people in the (planetary) system that for every person who refuses to buy three more will step up and generally be so confused and ignorant that they will make no objections and simply buy...and buy....and ...buy. So why should the sales-reps exert themselves to demo units and debase themselves thru simple politeness and courtesy?

Remember my Grandpa's Golden Rule of Business: "Take it from where it is to where it ain't - and then create confusion about it's value."

 

china, earbud mentality, no money, no mass taste in hi fidelity, catalogue companies that sell for the exact same prices, internet, music as background instead of soundtrack of times. heard a pri interview yesterday re: the musaz co. in s. carolina that made me almost sick.
they're "hip" they said.... they just license records. too many fists in same pie...

 

I was taking to a retailer in NYC and he mentioned that the manufacturers are starting to lobby the remaining retailers to take on lines of good products. I remember the the days when good products line companies could pick and choose their retailers and require them to stock a certain volume of product to keep the brand. It won't be long before the only remaining person to ask for audio advice will be your local UPS delivery van driver.

 

Tough business to be in, especiallly in the last 5 years. I worked for an A/V speciality store for a few years. When times are good, they can be very good. When the market changes, it's brutal. Overhead is everything!

I have to admit, I haven't bought any gear from a local store in well over a year. I did make an out of town trip to buy my Rega, which was an enjoyable experience. But I can't buy a new TT (or equivalent) every few months.

Based on my experience, you need two things to survive: 1) Several exclusive product lines (not available online) that can bring in their own customers, think B&W, Rega and McIntosh and 2) have a good, repeat, custom installation business where your margins and sales volumes are typically much higher than walk-in customers.

 

I still have the original Hi-Fi store in my town (in business for 30 years or more), and they are still doing the Hi-Fi thing. I'm not 100% sure, but I believe that they own the building and that's the reason they are still around.

they don't really compete with the home theater crowd: they do sell multi-channel systems and processors of course, but no TVs, no HTIB and stereo is their bread and butter.

It's also a great, welcoming place. I spend plenty of money there, but it's also a comfortable place to go hang around and chat with the staff, listen to music on some great systems and talk audio with people who know their stuff.

I'd be devastated if these guys closed their doors.

 

High end audio stores are not the only type of business going under, and may just be part of a general trend of closings. Up until a recent local TV news story showing the number of stores closed in a single area, I had not really taken notice. Since then, I have been paying closer attention when commuting to and from work. There's hardly a block that does not have at least one or more closed up businesses, and blocks in some areas that are the entire opposite, where they are almost completely boarded up, except for one or two businesss that are still open. Its a real eye opener.

 

Sam, you're right on about the custom installation part. But even that market has been hit recently.

 

Sad. I'm no help to these kinds of stores becuase I am not much of a tweaker and I tend to stick with stuff. However, I am going to probably buy a new Grado Green cartridge today from my local hifi shop "Gifted Listener" in Centreville, VA. I hope it sounds a little better than the ~10 year old Audio Technica 311EP that I'm using.

 

Remember record store day from a few weeks back? Maybe we need a "Stereo Store Day" to get people to support local high end stores.