Making Big Bucks, But at What Cost? | Audio Dealer 101
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- Опубликовано: 4 окт 2024
- How to be a rich & successful audio dealer like me? Watch this before you dive head-first into the audio industry as Adrian goes into details about the pros and cons of being an audio dealer and shares his decades-long experience with you.
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Audio Excellence Inc. is a high-end audio/video store in Markham, Ontario, Canada, a suburb of Toronto. We've been in business since 1991.
Check out our interviews with designers and audio luminaries like Daryl Wilson of Wilson Audio, Paul McGowan of PS Audio, Paolo Tezzon of Sonus Faber, Wendell Diller of Magnepan, John Atkinson of Stereophile, Dan D'Agostino of D'Agostino Master Audio Systems, Nelson Pass of Pass Labs and others.
Contacts:
Adrian@audioexcellence.ca
Mike@audioexcellence.ca
Lewis@audioexcellence.ca
Info@audioexcellence.ca
Audioexcellenceca@gmail.com
Edited by: Alison@audioexcellence.ca
Hello, Adrian, this is Alvin from Vinshine Audio. I don't think we've had the chance to connect previously. I wanted to express my appreciation for your videos; I find them truly enjoyable, especially this particular one! Your insights and recommendations are greatly appreciated, as they strongly align with our current experiences. Thank you for sharing!
Hi! And thanks
Thanks for a terrific video, Adrian. I'm retired now, and was never in a position like you but I imagine running a business like Audio Excellence requires real dedication all the time.
It does. But thankfully I love what I do
One of the few smart things I did in the early ’80’s was decide to not turn my part time job in the audio business into a full time career. Little did I know that I would get caught up in the industry almost 40 years later as a vendor. I tip my hat to you Adrian, you make owning a store look easy and of course it’s the exact opposite. You’ve managed to keep your integrity in what is a very difficult business. Kudos to you.
Thanks Robert. Wish I had been as smart as you !! Lol
I know you've lit the way for many a turntable - you are still in the audio business! Thank you!!
I did a short stint in the Audio industry for about 6 years.
Did quite a few shows and the thing a miss the most is the people connections that share your passion.
Thank you Adrian, keep doing what you do.
Vince
Thanks!
Adrian looks like a patient man if I've ever seen one. I live in South Africa, but if I ever get to visit Toronto Canada, I'd love to pop into Audio Excellence and meet him in person.
Love to meet you in person!
Came in from out of town and stated so.
Adrian couldn’t have been any more gracious and helpful!
Thanks for the kind words
Great video Adrian. I was in a profession I loved for the first 5 of the 10 years I was in it. Worked virtually 7 days a week. What wore me down? People!
lol
Respect to Jay, Villip, et al but this is what I like. I'm a fan of Adrian. His Tiger Mom did a great job. I can't imagine playing piano at 3yo
It can be your happy place
Great advice there, Adrian. I've just launched my RUclips channel focusing on audio called An Aussie Audiophile.
Audio is an absolute passion of mine, and I hope that after the grind of producing content for this channel, it still is. 🤞🎧🙂
That's great Shane! My best to you.
Thanks for the video, you are so honnest and open! I know the industrie and I feel you.
Thank you for the insights regarding the audio side of the business!
My pleasure
Like you (Adrian) I started back in the late 70's as an audiophile and progressively became more involved. Then i worked for a half dozen dealers in various places since it was exciting. It was surely a different epoch. Today I really don't understand the business model. The younger generation has basically abandoned the audio retailer formula, as it applies to High End. The baby boomers are mostly the remaining drivers unfortunately with disposable income to support this hobby. I appreciate your efforts trying to change that downward sliding trend.
I don’t know how most businesses can afford to keep paying their rent / lease. Especially in shopping centres. The monthly rents are so high yet you see very few customers. I guess that’s why they often fold up.
Payroll costs are a big problem these days if a business wants to keep their employees. In the case of AE, I suspect that the cost of inventory (for display and for stock to be available for sale), is a lot higher than people realize for a high-end audio store.
Many thanks for a generous sharing of your experience and observations around "the audio business." I found myself nodding in agreement as I watched. The disconnect for me will always be my passion for great sound colliding with the "I listen to music on my cell phone crowd." That's where your comments around patience really hit home for me. Stay well everyone. Tomeh
very true. yes a system was the goal even back into the 1950s for all ages.
I was fortunate. A friend purchased and restored a set of IRS V … total cost … about USD60k. They sound very good.
It’s not easy to be a hifi dealer. Not at all. The cost of holding stock is a crazy amount. That is only one aspect of the biz.
What Adrian says it just the honest truth. It ain’t easy.
I have spent more than a decade trying to understand what is a great business model, and I can tell you that it is not audio gear. AI will also make the need for great gear and acoustic treatment lesser. That said, it’s a business for passion, like working with art. As a life style business model it’s better than many art forms. The video included many good thoughts. Great content and honest words.
Thank you
I worked for The Music Room in Boulder CO. When I was there they were grossing around $7 million a year. Overhead was fairly high. They were averaging around 70 people on the website at any one time.That would be fabulous for a HiFi store. They paid well to people selling and sell at a fair price. Josh started the business out of his house. They have been around maybe ten years and have twenty employees at most. None of which are terribly high paid.
Your video reminds me of when I was heavily into mountain biking about 20 years ago, and while reading all of the biking magazines you’d run into the “So, you think you want to run your own bike shop?” and it matched all of the points you brought up here - the very small percentage of small businesses that make it past the first year, plan to make absolutely NO money for your first couple of years, etc. certainly a high risk for uncertain rewards and a possible loss of the passion that brought you here in the first place. But then we see the Porsches and other high end cars in the owner’s parking spot, and sometimes we go ..hmmm..
Like all businesses, if it works, you can possibly make some money. But too often, business owners make the mistake of thinking cash flow is the same as profit, and I have definitely made that mistake!
Location and population matters too. Very few dealers left in my town - not enough clients with big pocket books. Toronto and Montreal are now destinations for buying luxury audio products in Canada.
This is a video that would be very useful for my business students. Much appreciated.
Thank you
Small business creation and building is indeed tough sledding, but can also be highly rewarding .
Yes
Nice video. I'm not an audio dealer, but I can appreciate this. I'm not sure I have the temperament for what you do. Again, nice video.
Thanks
Yeah, that's what I thought happened. The Naim Nait 5si with an Uniti Atom and speakers of choice should satisfy almost every music lover////but the total cost (about $6,000 US + speakers). It's no small pocket change and a key purchase barrier for most. No question, most good value brands are too expensive for most music lovers.
Like kids, most adult music lovers view new high end component systems as not needed. They are more than happy with their Bluetooth speakers, Sonos systems oear buds / headphones or vintage systems streaming from their phones and tablets. The staunch older audiophiles are dying off in devastating numbers and the industry does not do a great job educating new younger target prospects. You really need a stomach of steel to open a new audio shop in 2023, unless you have special access to the very affluent market who love music, which rarely experiences a downturn in spending, but it does happen through bad stock market cycles.
Lovely and pretty personal testimonial. Thanks once again Adrian!
My pleasure
Thanks for the share. It's a lucky few that are able to do what they want. As for the rest, if we're honest, are surviving. Being a audio dealer would be great because you get to hear great gear, but frustrating because you couldn't afford to buy e everything that moves you.
For me it has been and continues to be a passion of design and building custom audio electronics and speakers since the mid 70s. I'm currently testing a protype preamp with parametric tone controls like a DSP but end to end analog. My plan is to offer it as a DIY kit.
My father in law was a golf pro at a couple of country clubs. As I became addicted I thought he had the best job in the world. He didn’t. It was now business.
The money is definitely a big pro for being a dealer. Dealers capture the largest margin % in the entire supply chain. Kudos to you Adrian for making enough to to buy 60+ exotic sports cars, big inspiration for sure.
Only 60?
Hi Adrian. I'd like to mention how relatable parts of this discussion are in my path towards reaching my own goals. My career approach is from the position of audio technology developer. Patience and human communication skills are super important to maintain and expand upon consistently. I'm an entrepreneur who spent time learning and practicing the ropes and expectations across pro audio development & have encountered plenty of challenges with being understood by others with experience in the hifi focused industry. Ocd hi fi guy did a good job laying out some key differences between them. Pro audio and hifi audio are equally preferable to me, so my aim is in providing new and refreshing options to the world of HiFi. Let's connect sometime soon.
What a great advice, not just for starting hifi biz, but almost anything where you have to start small as a one man band and actually survive and nice and/or competitive market! Thank you!
Thank you so much for this Adrian. I just came from your newest video and I enjoyed this one as much.
I'll be checking out the book that you just recommended!
I think you really hit the nail on the head with potentially losing your passion for something when it becomes a job and your suggestion of the emyth is spot on. Though, I am gutted to hear you have another friend named Paul in a similar industry to me. He sounds terrible. 😂
Ah, but you will always be the only one who appreciates my unboxing videos!
🤣🤣I appreciate a lot of things about you, but I'm not sure if unboxing videos is one of them 🤣🤣@@adrianlow2114
Thanks so much for this. You provide unique insight that I don't recall anyone doing this. Yishar Koach!
Adrian you are absolutely right
The video its very accurate
Thank you for your thoughts
As far you having lots of patience might be a bit overrated
But I do believe that you work very hard and you deserve everything you have accomplish through the years.
Say hello to Lewis since he started working for you he never calls me lol
You are right, I don't have a lot of patience these days, partly due to time constraints, partly because I have become extremely aware of the value of time, so I choose to spend my time with friends, family and my own clients. Lewis, Mike, Alison and Stefan are here to help our store clients, and that frees me to look after my own
Adrian thank you for your knowledge and wisdom ! We all appreciate it. Hi Allison! Good job.
Thanks!
Great video. Just found your channel and have learned a ton. Thank you very much! Great job!
Thanks for sharing your experiences with us Adrian.
My pleasure
Wow, Adrian. Very insightful on the reality of running a small business.
Thank you
Hi Adrian, I initially came across your channel because I’ve been thinking about getting some LRS+. Your review of the LRS+ is really helpful. Still debating if I really need them.
This video was really interesting. My brother builds high-end custom bicycles. He literally starts with steel tubes and ends up with beautiful hand-built bikes. It strikes me that he deals with a similar type of clientele: affluent, often idiosyncratic middle-aged men (and their wives). Many of his sales involve countless hours of back and forth emails about frame geometry, components, what type of riding they do, what they like and hate about current bikes. Often, he spends hours and hours discussing a build, only to have the customer go elsewhere, or simply get cold feet. It drives him crazy, but it’s just part of dealing with high-end product.
I’m in Portland Oregon. If I was closer, I’d probably be in your shop often. 😉 Thanks for the great content!
Great video! I think it could apply to almost any business. I unfortunately never did find a job or career that i was ever passionate about.
You certainly are right about turning a passion into a business, I loved Muskie fishing until I started guiding, within a couple seasons I was done. Luckily it was just a side hustle. Can’t imagine if you depended on the income.
Great advice and video. 👏😎
Thank you
I hope you continue to do what you love to do! In the end, it’s whatever makes you happy! I wish you much success! Your channel has brought me much enjoyment! And I thank you for that! ☮️🖖🏽
Adrian, have you heard the new Metronome DAC with leedh volume control? I have heard it twice now, and I think it's a game changer.
No I haven't
What a wonderful video Adrian , thanks for sharing your journey 😉
We speak the same language gentleman 💯 In other words, been there, done that and still manage to keep things going forward, even though I choose to be my sweetheart's caretaker for more than a decade while running a High-End Audio business that's specialized in modifying audio gears for people all over the globe.
Love your videos Adrian.
Keep posting 😉
Have a wonderful day.
Thanks, and you're a good man!
@@adrianlow2114Thanks Adrian , It takes one to know one!
Thanks for this video. I've just embarked on a home based audio store business. Thank you for the insight and perspective.
Good luck!! Best wishes to you
Hi Adrian, everything you are saying is extremely valuable but I think there needs to be retail innovation to change with the times. In a shrinking market there needs to be new ways to serve the existing customers and also attract a new breed of customer. I have a couple of outside the box thoughts as I have been thinking about this for a while. If you want to know more drop me a note here and I’ll reach out to you. If not, no worries keep up the good work.
By all means, email me at info@audioexcellence.ca
In my 35 years of work experience, I only really loved maybe 5 or 6 years…. Because in those years I had a GREAT BOSS!
Thank you Adrian for sharing your thoughts insights and your experience. 😎👍
Great insights & stories. Nice to get an experienced accounting of how things are .
Nice editing too!! Lots of great inserts and details =)
See you at the Audiofest!
Definitely see you!
Great. I have a Market Research Company. Tell your brother I use to do VTAM/NCP. He will understand.
If I had a lot of $$$ I would probobly have my own dealer. At one point when we had all these local brick and mortar stores I wanted to work in this industry selling and maybe getting into the custom I stall of home audio. It was fun to go into stores and see new stuff and visit with the staff and ask questions. I admit I was probobly seen as a time waster to some of them because I didn't have much $$$. Than one by one you see all these local dealers you used to visit disappear. Seeing how the ones that survive go to only by appointment hours. And of course the internet makes it so much harder for stores to survive as well. Saw a few of them shrink what they carried for 2 channel stuff to mostly home theater and custom home aidio/video installs. If I was a dealer, I'm bot sure I would carry too much of the mid fi stuff. I would carry stuff that I would be interested in and that's mostly 2 channel brands which as Adrian says is very nitch market. Nobody is going to get rich. Another thing not mentioned is how fortuntante Adrian or anyone else thinking of becoming a dealer of certain brands is not easy I'm guessing with restrictions they have. I believe some have certain areas they want to cover? I'm guessing it's not easy to become dealers of gear like McIntosh, Wilson, b&w etc even if say you had a bunch if $$$ to start a dealer. I think this could be a video just itself. I couldn't imagine starting a dealership today specializing in 2 channel. I'm in awe of the ones that are able to and continue to be in business. Unfortunately like Adrian says you probobly need a pile of $$$ to start one because getting a loan for this wouldn't be a wise investment. Thank you Adrian!
Good insights. You are right that besides the challenges of running a business, many manufacturers have territorial agreements with dealers
I tore a calf muscle, stepping off a pickup truck. Ouch!!!! Luckily it heals quick
Not having a vacation in Canada in this climate is absolutely crazy.
Nice and informative video.Thanks for sharing👍
My pleasure
I agree with most of your points. Well done. I do want real vacation. So I am not interested. Good that you enjoy what you do.
Thanks!
I really wanted to start my hifi shop, you know the ones where folks come in have a tea or coffee with some biscuits and listen to music. However, I will never do it since products I like and want to sell many won't find them appealing and I can't stomach to stock stuff that I don't like. Also I probably can't spend time on time wasters. So I will keep my passion where it belongs
Спасибо за честность!❤
Accounting and financial knowledge is key, get a great accountant (hard to find) no matter what business you do. Also have a good lawyer. Making money is not the issue, managing and keeping money is hard.
The more specific you can nail down your niche the better off you are. It also helps if you are independently wealthy before you begin 😂 (kidding but not kidding).
Things you don’t have typically in a small business, dental, pension, physio and paid vacations. Help to have a partner with a full time job that provides the above.
My 2 cents.
Great points
Most jobs , businesses etc that pay well have a cost. Usually it’s time.
gracias señor . excelente !
de nada!
Sounds much more realistic than my stereo
Great video
Thanks
Spot on!!
Why did you change your mind on Linn as one of the good value audio lines available today? BTW, Linn is far from inexpensive today.
Because I am not familiar with Linn today. I misspoke, meant to say Naim, specifically the Nait 5 series and the Uniti
I have 2 comments to throw🙃 one is that working long hours in high end hi fi shop listening music just to keep it open is not hardest thing to do 🤣 but hard part must be selling those very expensive products where most people look at like exotics far from reach 😱 especially not every milioner is an audiophile 😰
As a benefit of being in the business, did you mention product discounts?
You get to buy things at dealer cost, sometimes less, but first you have to have the money left over lol
I don't know - its not hi-fi, but selling toilets is kinda growing on me 😎
lol!!
Hello Adrian,
This was fresh and great.
Are you married? Kids?
Quite comprehensive
Yes, 3 daughters and 2 dogs!
Adrian, should one's stereo system cost more or less than their house? Like as in a $300k house..
I wouldn't, not anymore, but when I was young, ABSOLUTELY! lol Different perspective, different priorities, and hopefully, I've matured somewhat
Mikes just got STROKERS CRAMP he will be ok. That’s good he has his eyes covered during recovery to avoid any temptation looking at porn. 😂
The business cycle: Founder creates a moderate success. Son/daughter blows it up into a real enterprise. Grandchild files for bankruptcy.
My niece buys generic earpods. She doesn't care. Yuck. 😵
Is all about who can buy this high price items japenese in 80 hong kong in 90 now china will be the next high roller
One million dollars
How can the younger generation afford high end equipment when single family homes are way beyond their means.
Adrian, Everything you said is not only valid, but valuable! I do hope you will review this video?
Sadly, this video was nearly *impossible* to watch! The lighting level changing every few seconds was the most annoying, but the slow zooming in and out combined with the abrupt cuts from different zoom levels serves no positive purpose. Allison, always choose quality over gimmickry?
I had to re-watch the video to see what you were talking about, and I think you are over-reacting. It wasn't unwatchable. Also, the audio quality was very good, which is the most important thing.
Everyone's entitled to their own opinion, but oh boy how some comments can be harsh for no good reason. Calling this video "impossible to watch" is quite a stretch don't you think?! I mean the message is what matters here, isn't it? Adrian shares his dealer business wisdom free of charge, and all you can think of is the video production quality?! Was it sold to you as a "Martin Scorcese presents..." type-of-video? Just sayin'... Tomorrow will be a better day!
It was great, some people just feel better by bitching.
@@Mark-rw3kw exactly I didnt notice anything at all wrong with the production.
I guess it could be a monitor issue with the lighting level, but you *did* see it fluctuating back and forth?
You don’t really strike me as a people person. You are a nice person, but not so much people person.
Interesting. I sorta disagree 🤔🙄😇
yeah that's what jolly unique sense of humour Villup brought. Adrian is more attuned though than I think Looiss.
I have had the best most insightful conversations with Adrian
🚮
Hard to be sympathetic. 🙄
Do you live with Allergies? Your always make a bad sound when you swallow your snot or suck on sweets. You can do what you want, but it's not good for your ears when listening to you speak. Please see a doctor about this.
Great video man. I'm in Texas I wish you were closer. Would love to buy products from you. Have truly enjoyed your videos and would trust your recommendations.
Thank you