The $2,500 and Under Room - How To Sell Audiophile Gear To a New Generation of 200,000,000 Music Lovers

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Boy did I ever grab the attention of the dealers in America during these hot summer months. I have received dozens of emails from AV retailers around the country objecting to calling (in general terms) dealers "lazy" and "entitled" while calling most reps mere "order-takers". Some manufacturers were even peeved with me for talking about margins (specifically rep margins); however these numbers are realistically no secret to the audiophile, as no hobbyist group does more research and or tries harder to get the most audio performance from their beloved music playback system. For that, you have to love the traditional audiophile even if they are a spending less and less as they age.

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A lot of people think that as the American economy starts its long road to recovery, that things will rebound right back to normal. Many of the print magazines that HomeTheaterReview.com fights over ad budgets with, truly believe the days of getting $6,000, $8,000 and $10,000-plus per page for an ad with no statistical accountability, that reaches an increasingly older audience will be returning. They are wrong. Dead wrong. Audio dealers who think a "killer app," like the somewhat profit-rich, flat HDTV, will drive dozens of new customers through their front doors are also misled. HDTVs today are now mostly a commodity and consumers looking to spend a little extra money above the big box retailers and especially the warehouse stores demand that they get more and more for their incremental spends. If it makes the retailers feel any better - the ad agencies demand the same from online publications. If you are spending for premium goods in any market these days - you can ask for the world and you might just get it. That's just how things are right now in this economy.

I believe the solution for specialty AV dealers' sales and/or profitability woes is to return to what made the "stereo store" truly great. I am proposing that dealers get back to selling audio. That's right - I said it's time to get back to selling high performance audio gear. It is true that consumers believe what they see much more than what they hear; thus the "order taking" comments in recent weeks. All salespeople want the easy "lay down" sale but that isn't really the foundation of a great working relationship. With over 200,000,000 Apple iPods walking around in the hands of the next generation of potential audio enthusiast fans' hands, and traditional audiophiles headed quickly towards Social Security, I am proposing a different way to sell audio. I am proposing selling audio for the new economy and for a New Generation. The consumer demand is there as Apple has proven to us. The question is: are dealers too set in their ways to get away from selling bloated, overly-esoteric audiophile products to older clients or can they get back to audiophilia's roots when younger Baby Boomers in the 1980s bought up the likes of Adcom, Aragon, Magnepan, Luxman, NAD and other value oriented products that led to a generation-long audio gear love affair?

The Under $2,500 Room
I am challenging - especially the dealers who emailed me in the past few weeks - to consider investing (YES - this means you have to spend some of your money) in one new room in a traditional brick and mortar store. Call it the "Under $2,500 Room" because nothing in the room should be much above that price point, as the next generation of consumers can't yet pop for high end Meridian, Wilson and Mark Levinson - but someday will. It just takes time, interest and money.

Construction:
First off, gut the room with the help of a contractor. Ditch the drywall and replace it with Quiet Rock which is easily three times the cost of traditional drywall but with its "goop" you can create a very quiet environment to listen in, even for affordable gear. Fill the walls with acoustical material made from recycled blue jeans or other "green" sound deadening materials. Replace any windows with new, multi-pane windows which are more energy efficient and quiet. Ultimately install absorptive treatments for the windows to reduce unwanted reflections. Rip out the carpet and perhaps replace it with dark hardwood floors (think Apple Store) or even polished cement. Add a thick carpet to soften the acoustics. Place a thick carpet in the middle of the room where the main seating will be, to help with absorption and to create a luxurious yet modern look.

Before finishing the drywall, wire the walls with HDMI cables for one or two video displays but not many. Run conduit in the walls for multiple runs of speaker cables and audio cables too. This costs nearly nothing when the walls are opened and its allows you to keep the cable clutter to a minimum, which is how Apple does it - but not how most traditional stereo stores show affordable audio gear.

When the Quiet Rock is up and the room is painted, build a relatively thin fabric wall (Whisper Walls are good) on two sides of the room as well as in the ceiling. Install easily 50 low voltage lights with very specific tasks of lighting up reading areas for the listener, showcasing gear on display. No one light is designed to light the entire room. Control the lights with a Lutron Grafix Eye or some other good lighting control that costs under $1,000, and create lighting scenes.

There should be a good amount of equipment in the room. However there should only be one (maybe two) seats, preferably ones that swivel and that have foot rests like an Eames chair. The majority of the equipment should be resting on custom made (but not too pricey) maple veneer shelves positioned from waist level to a little bit higher. Avoid the urge to put gear on the floor like a stereotypical stereo store. Create a focus on the gear currently working by placing it on stands than match the shelves made by your cabinet maker. They can be rectangular and perhaps different heights to create visual interest. These stands will be cheap to make as they will be made from plywood and covered in exotic wood veneers. Keep the systems simple and elegant with cable clutter at a minimum.

For the rest of the equipment in the room (and there should be a good amount to create an art gallery effect) showcase the equipment on the shelves. Hide the power cables by cutting holes in the shelves and use polished aluminum grommets to organize the cables. Realistically, most of the gear in the room won't be actively demo'ed but could easily be moved from the shelves and into service if needed. Equipment should have plastic tags with printed information about the product like you would see in an art museum. "XYZ's USB stereo preamp, made in Belgium, $1,995." Let people learn on their own what things cost without having to pitch it to them constantly. This room is designed to be very approachable for the new school customer.

Read more, including the necessary equipment requirements, on Page 2.
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  • Comment on this article

  • By Dan

Good points. I would definately add a "Good HT in a Box" and set it up IN or next to the entry-level audiophile room. Do the comparisons. Have a Class A room set-up and compare it to the $2,500 components and the HT in a Box system. Don't use a bogus HT/Box system. They'll know it soon enough and don't guess when. Get one of the best so they know it.

Don't do bogus set-ups on the HT/Box system. Set it all up perfect.

Most people are not really veneer copies of their superheros seeking clone systems. Develop a great, standardized audiophile orientation/presentation that's flexible enough to address every customer. They need to be led from IPOD to HT/Box to audiophile entry level to Class A.

If you cut corners, hard sale greenhorns, add 1-2K in cables or anything else you may be in for a long, rough ride.

Technology moved slow a long time ago. Analog dealers/salesmen could become very proficient with longer time in the field. Leave for a year or two or three, come back, and everything's much the same. New Tech moves so fast now, the personnel can easily become absolete first.

It's going to take effort. Someone said effort is 99% of success. The remaining 5% has all valid excuses, and all the BS.

SYSTEM MATCHED and proper SET-UP is huge. Explain the science.

Integrated amps, system matched to sources/passive speakers/powered sub, and, processors with powered speakers may have the smallest footprint. Your entry level gear needs to be "Keepers".

Bipass the processor/integrated amp for video processing. Go straight from the source players' video OUT to the video inputs on the monitor. Explain why.

Get the best copies of digital recordings , and show them the difference between redbook CD's, HDCD's, DTS, DVD-A, SACD, and K2HD.

Audiophile entry is usually a leap in faith. Give them the gift. In a tight economy, audiophile level music combined with HT is a great deal, especially with NETFLIX and other media.

  • By Phil Olenick

I agree with Dan. Don't make the choice simply between "amplify your iPod" and "give us all your money."

Read the article in the current issue of WIRED about the ascendence of "good enuf" tech, and the study done by playing mp3 and lossless versions of the same tracks for college students - who preferred the sound of mp3s!

The cream-skimming approach of audio shops now is what has led to the dismal state of the public's understanding of good sound. By denying affordable quality equipment adequate presentation in shops that can do so, the idea has grown that there isn't really anything better than mp3s - that "lossless" audio is a shuck and a con.

Just last week, I had a frustrating argument with one such disbeliever in an online board where I had advised someone how to listen for the difference between a lossless and a traditional Dolby soundtrack by using small-ensemble music or dialog. This troll jumped into the discussion, asserting that fans of lossless were deluding ourselves into believing that there's a difference, and that any difference we can hear is because we "want" to hear a difference.

I'm of the Boomer generation that moved up slowly over the years from Fisher "systems" to Dynaco separates driving original large Advents, to my current Yamaha / Paradigm surround system fed by a Denon 2910 to play CD, SACD, and DVD-A disks, and a Panasonic BD-50 for Blu-ray lossless tracks through multichannel analog cables.

Don't make the entry point to high quality sound so expensive that it loses mass market status. If it's to survive, the high fidelity audio business has got to wean itself from easy hit of the high-margin sale to the rich guy.

It should still be a "classy" sales situation, with demo rooms and knowledgeable sales people. The big-box stores will be holding down the "Bic pen" end of the market, but the audio shops should not turn up their noses at the Cross pens and hold out for customers who can afford Mont Blanc pens.

Well done Jerry, great article and exactly as we had done two years ago when we started House of Linn. Network music systems throughout with Cat5/6 cable and ethernet over mains in every room for wireless control of digital MUSIC!. Personalised demonstrations are a must, most of which exceed two hours. We designed our website to be informative as possible and we do our own SEO, which is not difficult. Take care and time with enquiries as the customer relationship is more important than the sale. We treat our customers in the same way we would want to be treated through the search, consideration and buying process. Proper audio demonstrations are essential to move people over from ipod to ihome and to hear exactly what is possible with digital audio through dedicated music systems for standard cd formats, studio master downloads and of course, vinyl!

  • By Michael Koetsier

I don't want to disagree with everyone, but I think this is the wrong direction. As someone who works with college students, I think this article misses the main point that young people don't have audiophile, near-audiophile, or even less-than-audiophile money. It also presumes that young people are not as knowledgeable about audiophile gear.

First of all, $2000 for a Belgian pre/dac will scare most of the young buyers away. While I agree that prices are down and interest in hifi audio has been dropping, they are still far from the bottom and young people believe this too. The suggestion about the Oppo is good, but let's remember that this is the bar that could completely erode the market for Denon & Mac's universal players. Not only do young people expect to pay Oppo prices, but they also know that technology changes too fast too maintain them. A near new pre/pro will be 20% less expensive used, and will continue to decline in real value over time, and young people expect this.

This article also presumes is that young people will buy lemming-like into a market that is, in their minds, overpriced to begin with. They know about the markups because they have read Mr. Del Colliano's last article online already. They read AdBusters, Truth in Advertising, and follow Michael Framer's million dollar cable challenge. They have spent considerable time reading through discussion posts and chatting about gear online. Young people can find more information about a product than most dealers ever will, and so they will always be well informed. It would really be a shame if a dealer spent thousands turning one of his/her showroom into an Apple/Ikea store look-alike, when that investment is lost on young people who will only show up for the freebies and demos, and then buy a less expensive model online. And not to muddy the waters, but Apple's appeal as a music-only player is fading quite a bit. Not only is the player ubiquitous to the point of becoming boring, but young consumers want more than that in a player, much more.

Also, I think the importance of design is misunderstood. While the Apple/Ikea-store look is a good starting point, young consumers wouldn't be interested in square box speakers from Paradigm, Revel, etc., even with the grills off, LOL. Yes, they would very much prefer the Martin Logans, but even those are bulky. Young people believe, perhaps rightly so, that good performance and good design ought to be possible at an aggressive price-point. Instead of the boring NAD and Naim designs, why not some entry level gear from Pathos? Wall-hanging Magnepand MC1s will go a lot further than anything from B&K or Dynaudio (excluding their out-of-reach uber-expensive top-of-the-line). Hiding speaker wires and emphasizing bluetooth is good, but that should be carried further by using lightweight colorful interconnects from Kimber rather than the bulky garden-hose stuff. Yes, most of it will be hidden, but don't expect young consumers to forgo checking the back of the gear where the cables are. Most young people believe that wire is snake-oil, and at the price-point of their gear they own, they aren't going to hear the improvements. So keeping the cables small & light is a good way to de-emphasize them. As for turntables, a Clearaudio Emotion with a Lyra will score big points, but a VPI with Koetsu will not. Don't bother with the USB table - young people know that's Stanton/Ion territory. And to keep clutter to a minimum, a preamp with built-in phono stage will be more appreciated than an outboard one.

Not to beat a dead horse, but the competition from online-only retailers should not be glossed-over. Brands like Emotiva, Channel Islands, Peachtree and even the oft-snubbed gear direct from China is known to young buyers. They know full-well that they can find a very good tube integrated from Dared that outperforms most anything in its price-class. Warranty and service is not an issue because they aren't shy about shipping something back overseas and negotiating discounts through email and twitter. So yes, they know that Primare and Classe make great gear, but they also know that their dollars will go further with other brands.

Finally, young people care a lot more about environmental issues than yesteryear's audiophile. Green lighting is a good start, but the gear should be green too. While a pair of Escalante speakers are perhaps out of their range, a digital amp like the PS Audio trio series will go a long way too. NuForce knows this all too well and has divided their product lines, with one, the "Desktop" (aka computer/small/portable) being targeted directly at the Gen-Xers out there. Young people want to see the silver Rotel "D" amps with the trendy blue lights, so forget about the last-millennium Krell space-heaters that contribute to global warming in so many ways they will not tire in describing to you. Young people also believe that green should be more affordable. They know that a digital amp is less expensive to produce and so they expect this gear to be Oppo-priced, at least.

  • By Jerry Del Colliano

Dear Professor,

(posting from seat 4b on the way to CEDIA and willing to give some props to Delta for Internet on the plane)

Respectfully, I think you missed my point about this room and concept.

In High School in Philly, I worked at Bryn Mawr Stereo to make money to buy a VW GTI as well as audio gear (naim, rotel and celestion). When I got to music school at USC, I not only upgraded my system to Aragon, THEIL and Cello - I bought a GTI VR6 new. While working for Mr. Levinson at Cello and after starting AudioRevolution.com - I upgraded my GTI VR6 to a 1996 911 C2 and my Cello to Mark Levinson and Wilson. I was 23 at the time. I am 35 today.

The point of the article was that selling over-bloated audiophile gear to Boomers while they are starting up their Social Security isn't the best business model. If audiophila is to be anything other than a old-guy nerd hobby - there needs to be a new crop of gear for the kids to grow into just like I did above.

My father taught at USC for past few years. I know the kids are broke yet they spend on Apple products don't they? They won't be broke forever just like one day I could afford a 911. The job market wont be like it is today but the seeds need to be planted for buying more expensive stuff or there will simply be no specialty audio in 10 years.

  • By Michael Koetsier

With all due respect, most high school students don't typically own VW GTIs and audio gear from Naim & Rotel. Likewise college students, even ones who attend rich schools like USC, don't then upgrade their systems to Aragon, Theil and Cello and buy GTI VR6s new, then follow that up a few years later with 911s, and gear from Cello, Levinson and Wilson, all before turning 23. I think that is a fantasy most college grads would very much like to experience, but few will actually know. BTW, I started with a 8-year old Honda Cvcc and a Realistic stereo/cassette/record player, but I am now also able to afford much better. That said, when I wasn't, I focused more on the music than the minutia of detail, resolution, and air to compensate - and I dare say I probably enjoyed this hobby more then.

My point being that the price-ranges you are referring to are still well out of reach for college students and new graduates. In the mean-time this hobby fades further and further into a world inhabited by privileged white males who's numbers are declining rapidly. If we want our hobby to survive, we need to produce better products at down-to-earth prices, the types of products that companies like Oppo are providing. Articles such as this one are not only misleading, but also very much the reason young customers are not buying the gear in the first place.

  • By Jerry Del Colliano

My parents and my professors taught me to AIM HIGH.

I expect the next generation to do the same.

It worked well for me and it will work well for those who want to copy the success.

For those who want to "dumb down" the experience and not shoot for the skies - good luck to you. There are BILLIONS of Indians (dot - not "woo woo") and Chinese who want a GTI, a VR6 GTI and some Cello/Wilson/MarkLevinson. Don't be mad when they rule the world - not you.

  • By console xbox 360

I had a frustrating argument with one such disbeliever in an on line board where I had advised someone how to listen for the difference between a lossless and a traditional Dolby soundtrack by using small-ensemble music or dialog. This troll jumped into the discussion, asserting that fans of lossless were deluding ourselves into believing that there's a difference, and that any difference we can hear is because we want to hear a difference.

console xbox 360

I had a frustrating argument with one such disbeliever in an on line board where I had advised someone how to listen for the difference between a lossless and a traditional Dolby soundtrack by using small-ensemble music or dialog. This troll jumped into the discussion, asserting that fans of lossless were deluding ourselves into believing that there's a difference, and that any difference we can hear is because we want to hear a difference.

I had a frustrating argument with one such disbeliever in an on line board where I had advised someone how to listen for the difference between a lossless and a traditional Dolby soundtrack by using small-ensemble music or dialog. This troll jumped into the discussion, asserting that fans of lossless were deluding ourselves into believing that there's a difference, and that any difference we can hear is because we want to hear a difference.

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