Value (of dealers)
Posted by: Don Atkinson on 04 August 2001
I totally agree that we mustn't use dealers' facilities eg dems, then buy from 'box-shifters' or privately. This is morally wrong and unsustainable. Also, we can't all buy second hand all of the time -just doen't work!
But just what VALUE does a dealer provide? and at what PRICE?
OK, so Oscar Wilde defined a cynic as 'a man who knows the price of everything and the value of nothing'. This might accurately describe some of us (and a fair number of dealers), but does it really help?
Try John Ruskin :-
Value is the life-giving power of everything
Cost, the quantity of labour to produce it
Price, the quantity of labour which its possessor will take in exchange for it.
How do you assess the VALUE of your dealer, and do you actually have any idea of his PRICE?
Discuss, with the emphasis on value.
Cheers,
Don
quote:
I bought my first (second hand) Mercedes over 15 years ago for this very reason and have since realised that I can't really afford a Ford/Rover/Vauxhall…
Exactly my point. Bet it's still running.
Best;
Mark
(an imperfect
forum environment is
better than none)
Quote Bet it's still running.
It sure is, but I did sell it on, about 10 years ago. The second one is still running and that was sold on about 5 years ago and my third is still doing well. I seem to buy them at about 8 years and 100,000 miles, keep them 5 years adding 60k to 100k then pass them on. Dealers do proper (value) servicing/maintenance with the right parts.
Similar to second-hand Naim??
New owners also seem to be delighted.
Cheers
Don
I suppose my argument is about two things: 1. It is extremely inconvenient to compare high-end systems if you have to visit different dealers and arrange to borrow equipment at the same time and so on. 2. The uninformed buyer who goes to their nearest dealer is unlikely to receive unbiased guidance - is likely to be shown a narrow range of brands and may be misled into assuming the Dealer has wide experience and has selected the best to stock.
But these are pre-purchase issues. I agree that post-purchase what you want is a dealer who has specialist expertise in the brands you have bought and a good rapport with the suppliers in case you need service and upgrades or whatever. Perhaps we should look elsewhere to solve the pre-purchase need. Magazines? HiFi shows? Lots of leg-work?
On the matter of what value dealers add, a micro-economics way to look at it would be to imagine a world where we could buy, say, Naim gear directly from Naim through the website at dealer prices (a further note on this in a mo). Also assume dealers were free to sell at any price. In theory, the value the dealer adds would settle to be the difference between the Naim price and the dealer price. Because this is what we would be prepared to pay for all those dealer activities. I would bet that this difference would be considerably lower than it is today!
Now, someone mentioned 40% as the trade price paid by dealers. Of course, this price varies all over the place depending upon dealer and supplier. I think a supplier can give an individual dealer any discount it likes. Hence the suppliers have added power. I think 40% is a little lean at the high-end, so let's say it's 50% to make the maths easy.
What does paying double buy you?
a) auditioning convenience
b) some comparison opportunities
c) set-up expertise and advice: optimization
d) personal service
e) opportunity to purchase extended warranties
f) one-stop shop
Where else can you find these things? Is it worth paying double the price?
BAM
Quote imagine a world where we could buy, say, Naim gear directly from Naim through the website at dealer prices. Also assume dealers were free to sell at any price. In theory, the value the dealer adds would settle to be the difference between the Naim price and the dealer price. Because this is what we would be prepared to pay for all those dealer activities
I agree!
Naim could post a list of RECOMMENDED services that the dealer should provide for a RECOMMENDED retail price but the dealer should be free to offer more than this (at a premium price) or less than this at a reduced price. All prices and services to be clearly displayed in the shop window!
You want a demo? you pay the price in the window (up front!)You want home installation? you pay the price in the window (up front!)You want advice ......etc
The RECOMMENDED retail price would be exactly the same as it is now for exactly the same service (or would it????)
Cheers
Don
Quote I'm just glad Don Atkinson read my original post on this topic....
Ooooooppps!! must have missed it..along with one or two others.
A few key words so we can track it down??
Cheers
Don
I have some queries about the data you obtain from these cards:
One of the questions is regarding dealer instalation - what percenage of Naim componets are dealer installed.
What do you do with all the data - do you take action with dealers regarding negative comments,
Or do you bin the cards as they are just to give the customer a warm feeling that filling the card will achieve <g>
Derek
Quote Should I feel honoured I wonder
Possibly, but don't feel too disapointed if it isn't justified.
In another thread titled AAaaaaaarrrrggh!
Paul Darwin said Was it Oscar Wilde who said "The English know the price of everything and the value of nothing"(sic).. I think he was being a little bit cynical!
and could I just suggest that you don't waste a dealers time in auditioning the various cartridge options, as, on you own admission you have no intentions of buying one from him even though you may well abuse his professional experience, hospitality, time, set up expertise and demonstration facilities. Which I'm sure you will accept, do not come chreap and represent a huge investment on his part.
I thought the price bit would be easy and the value bit, difficult. Now I'm not so sure.
Cheers
Don
Quote To Naim re the registration cards
--------------------------------------------------------------------------------
With all the Naim boxes I have bought I have received a Registration Card which I have dutifully filled in or used the web site to enter the same info into the database of Naim users.
What do you do with all the data - do you take action with dealers regarding negative comments,
I believe that all the cards are sent back to the dealers.
Cheers
Don