Do you agree with the story can Electronics stores survive from online competition? - AVS Forum
Forum Jump: 
 
Thread Tools
post #1 of 18 Old 09-01-2012, 01:47 PM - Thread Starter
AVS Special Member
 
keyboardcat's Avatar
 
Join Date: Jan 2012
Posts: 1,359
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Liked: 19
http://finance.yahoo.com/news/can-electronics-stores-survive-.html


I think that the market has changed so much over the years. I remember when people bought big speakers for big bass. People can achieve big bass from a powered subwoofer now. The free shipping and no sales tax on a lot of online stores for a heavy subwoofer is to tempting to buy it online compared to the store. I don't know how much longer any of these stores will survive. I wonder if the online stores will jack up the prices when they have no more brick and mortar stores to worry about. It doesn't help the stores big speaker sales when so many people are buying ipod docks to jam to instead of play music on cd players. internet radio and mp3 files are convenient, but the cd music is so much better quality. If any of these stores might close which one do you think will go under first?
keyboardcat is offline  
Sponsored Links
Advertisement
 
post #2 of 18 Old 09-01-2012, 02:16 PM
AVS Special Member
 
Otto Pylot's Avatar
 
Join Date: May 2004
Location: San Jose, CA
Posts: 7,164
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 115 Post(s)
Liked: 235
Starting Sept. 15th, Calif. is going to begin taxing online sales based on your particular county's tax rate. That means for an online retailer like Amazon, they are going to have to really drop their prices so that they are competitive, even with tax, to the local B&M. Of course that will force the local B&M to price match if they want the business. However, if the local B&M doesn't have what you want, then online it is, but you still pay the tax so will there still be a good deal there? Hard to tell. I hope the local B&Ms don't go away because I still like to see and play before I make my purchase. Online buying can be a crap-shoot sometimes especially if you are looking for a particular item with a specific spec., and for speakers, you can't rely on specs alone (in fact, hardly ever) so you need to hear them which means they will have to be local. Interesting times ahead for sure.
Otto Pylot is offline  
post #3 of 18 Old 09-01-2012, 02:18 PM
AVS Special Member
 
ack_bk's Avatar
 
Join Date: Jan 2007
Location: Maple Grove, MN
Posts: 8,814
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 15 Post(s)
Liked: 102
I think many states will follow the lead of New York and California and impose the "Amazon tax". Enjoy the days of no tax online purchases, as I suspect we are only years away from most states taxing it. Too much tax revenue and jobs being lost as stores lose their business to online retailers who typically benefit from no taxes.

It will definitely level the playing field more IMHO.
ack_bk is offline  
post #4 of 18 Old 09-01-2012, 02:42 PM
AVS Special Member
 
MrEastSide's Avatar
 
Join Date: Feb 2008
Location: Minneapolis, MN
Posts: 1,436
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 19 Post(s)
Liked: 49
Regardless of tax, Amazon will still easily be able to beat brick and mortar stores if they want to. Amazon doesn't have hundreds of retail locations to pay for and maintain or thousands of employees to pay. Walmart employs 2 million people and operates and owns thousands of stores worldwide. Even though they have awesome prices on a lot, Amazon still beats them by a ton on 99% of items. The same thing goes for other brick and mortar stores. A little sales tax isn't going to change that.

Quote:
Of course, I got it modified with the TK-427, which cheeks it up another, maybe, 3 or 4 quads per channel.
MrEastSide is online now  
post #5 of 18 Old 09-01-2012, 02:52 PM
AVS Special Member
 
GusGus748s's Avatar
 
Join Date: Mar 2009
Location: Visalia, CA 93291
Posts: 6,352
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 42 Post(s)
Liked: 592
Quote:
Originally Posted by MrEastSide View Post

Regardless of tax, Amazon will still easily be able to beat brick and mortar stores if they want to. Amazon doesn't have hundreds of retail locations to pay for and maintain or thousands of employees to pay. Walmart employs 2 million people and operates and owns thousands of stores worldwide. Even though they have awesome prices on a lot, Amazon still beats them by a ton on 99% of items. The same thing goes for other brick and mortar stores. A little sales tax isn't going to change that.

I agree!

Media Server: UnRaid Server: 15TB of storage and growing :).

http://www.avsforum.com/lists/display/view/id/8599

 

Home Theater Set Up:

http://www.avsforum.com/lists/display/view/id/8597

GusGus748s is offline  
post #6 of 18 Old 09-01-2012, 03:28 PM
AVS Special Member
 
ack_bk's Avatar
 
Join Date: Jan 2007
Location: Maple Grove, MN
Posts: 8,814
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 15 Post(s)
Liked: 102
Quote:
Originally Posted by MrEastSide View Post

Regardless of tax, Amazon will still easily be able to beat brick and mortar stores if they want to. Amazon doesn't have hundreds of retail locations to pay for and maintain or thousands of employees to pay. Walmart employs 2 million people and operates and owns thousands of stores worldwide. Even though they have awesome prices on a lot, Amazon still beats them by a ton on 99% of items. The same thing goes for other brick and mortar stores. A little sales tax isn't going to change that.

Yeah, but Walmart has way more buying power than Amazon. In 2011 Walmart revenue was $422B. Amazon 2011 revenue was $48B. Walmart can buy in quantities and have leverage that Amazon just cannot right now. Smaller retailers and Mom+Pop stores are the most affected and then stores like Best Buy, that although they have more buying leverage for electronics, have struggled in recent years due to poor decisions, poor customer service, poor website, etc.
ack_bk is offline  
post #7 of 18 Old 09-01-2012, 03:56 PM
 
BeeMan458's Avatar
 
Join Date: Jun 2012
Location: Magalia, CA
Posts: 8,374
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Liked: 801
Quote:
Originally Posted by keyboardcat View Post

If any of these stores might close which one do you think will go under first?

I'm ambivalent to store closures. Our shopping habits are geared towards Costco and Amazon with whatever shop we find online that serves our purpose in between. Local shops have become a big bust in that quite often, we find us going to four or five shops and not finding what we have gone shopping for and if I go online, within minutes, I find what we need and voila, hassle free, a few working days later, it's delivered to our front door. The Shack is terrible at trying to find speaker cables supplies. And heck no am I going buy cables at BB. Online? Time, gas, money saved and finding the item you want in a hassle free environment; now that's what I'm talking about.

How can one find concern for a store going out of business which consistently fails us but at the same time, these are the same said stores that at other times, we do find items we want; hence the ambivalence.

-
BeeMan458 is offline  
post #8 of 18 Old 09-01-2012, 04:48 PM
AVS Special Member
 
Otto Pylot's Avatar
 
Join Date: May 2004
Location: San Jose, CA
Posts: 7,164
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 115 Post(s)
Liked: 235
Quote:
Originally Posted by ack_bk View Post

Yeah, but Walmart has way more buying power than Amazon. In 2011 Walmart revenue was $422B. Amazon 2011 revenue was $48B. Walmart can buy in quantities and have leverage that Amazon just cannot right now. Smaller retailers and Mom+Pop stores are the most affected and then stores like Best Buy, that although they have more buying leverage for electronics, have struggled in recent years due to poor decisions, poor customer service, poor website, etc.

yeah, but who the frak wants to shop at Walmart? eek.gif
Otto Pylot is offline  
post #9 of 18 Old 09-01-2012, 05:04 PM
AVS Special Member
 
ack_bk's Avatar
 
Join Date: Jan 2007
Location: Maple Grove, MN
Posts: 8,814
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 15 Post(s)
Liked: 102
Quote:
Originally Posted by Otto Pylot View Post

yeah, but who the frak wants to shop at Walmart? eek.gif

I have no problem buying electronics from them and Sams Club. Walmart could do what Best Buy has done recently and greatly expand their online store to carry more electronics and higher tiered brands. Ships to my house or the same as Amazon and you have he luxury of returning items to te store.
ack_bk is offline  
post #10 of 18 Old 09-01-2012, 05:38 PM
AVS Special Member
 
Otto Pylot's Avatar
 
Join Date: May 2004
Location: San Jose, CA
Posts: 7,164
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 115 Post(s)
Liked: 235
Quote:
Originally Posted by ack_bk View Post

I have no problem buying electronics from them and Sams Club. Walmart could do what Best Buy has done recently and greatly expand their online store to carry more electronics and higher tiered brands. Ships to my house or the same as Amazon and you have he luxury of returning items to te store.

It's not their prices it's their corporate policy. One has to take a stand against them and other corporations like minded, but that's a political statement, and doesn't belong here so we'll move on.
Otto Pylot is offline  
post #11 of 18 Old 09-01-2012, 06:07 PM
AVS Special Member
 
A9X-308's Avatar
 
Join Date: Mar 2008
Location: Australia; now run by adults.
Posts: 5,234
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 70 Post(s)
Liked: 54
Quote:
Originally Posted by BeeMan458 View Post

I'm ambivalent to store closures. Our shopping habits are geared towards Costco and Amazon with whatever shop we find online that serves our purpose in between. Local shops have become a big bust in that quite often, we find us going to four or five shops and not finding what we have gone shopping for and if I go online, within minutes, I find what we need and voila, hassle free, a few working days later, it's delivered to our front door. The Shack is terrible at trying to find speaker cables supplies. And heck no am I going buy cables at BB. Online? Time, gas, money saved and finding the item you want in a hassle free environment; now that's what I'm talking about.
How can one find concern for a store going out of business which consistently fails us but at the same time, these are the same said stores that at other times, we do find items we want; hence the ambivalence.
-
I'm pretty much in agreement with this. I find many store's staff to be missing in action, unknowledgeable about the product (especially AV), rude or not interested. Most of the big retailers here have online stores and most of their websites allow you to search a particular store for item stock levels, which allows me to go there, pick it up myself and be gone with minimum fuss, and ease of return if necessary. I typically know exactly what I want and am just shopping on price, availability and convenience. Because of work and domestic issues, delivery is not always feasible to me, so I will often not price match or go with the lowest price if a store comes close and is located nearby so I can collect.

Whether online, by phone or in person, what gets me is service and is rewarded with sales and return (at least enquiry) for the next item.
A9X-308 is offline  
post #12 of 18 Old 09-01-2012, 09:44 PM
AVS Special Member
 
N8DOGG's Avatar
 
Join Date: Dec 2003
Location: Canada
Posts: 5,668
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 101 Post(s)
Liked: 271
There are just certain things I'd rather buy in a store. Tv's appliances things of that nature. Heck, I'm right beside a mall and haven't been there in 4 years lol. I buy pretty much everything online. I only hope Amazon.ca can start offering more stuff here in Canada like you guys get in the US.

Blasting brown notes for 10 years and counting!

N8DOGG is offline  
post #13 of 18 Old 09-01-2012, 10:38 PM
AVS Special Member
 
MrEastSide's Avatar
 
Join Date: Feb 2008
Location: Minneapolis, MN
Posts: 1,436
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 19 Post(s)
Liked: 49
Quote:
Originally Posted by ack_bk View Post

Yeah, but Walmart has way more buying power than Amazon. In 2011 Walmart revenue was $422B. Amazon 2011 revenue was $48B. Walmart can buy in quantities and have leverage that Amazon just cannot right now. Smaller retailers and Mom+Pop stores are the most affected and then stores like Best Buy, that although they have more buying leverage for electronics, have struggled in recent years due to poor decisions, poor customer service, poor website, etc.

They do have more buying power, but clearly, that still doesn't matter most of the time. Everything I've ever bought from Amazon which Wal-mart also carried was still, usually, quite a bit cheaper on Amazon. I bought a Blu-ray two weeks ago from amazon for $7 bucks, Wal-mart was charging $15.88, so where in the hell is that awesome buying power? LoL. And go ahead and add that $1.00 of sales tax, amazon is still gonna whoop Wal-mart's ass on that purchase.

Granted, when you start buying more expensive items, the gap lessens sometimes when you start adding sales tax. But, when movies, books and other average purchases can still be had for significantly less on amazon, one or two dollars of sales tax isn't gonna diminish Amazon's appeal.

Quote:
Of course, I got it modified with the TK-427, which cheeks it up another, maybe, 3 or 4 quads per channel.
MrEastSide is online now  
post #14 of 18 Old 09-02-2012, 11:23 AM
AVS Special Member
 
N8DOGG's Avatar
 
Join Date: Dec 2003
Location: Canada
Posts: 5,668
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 101 Post(s)
Liked: 271
Maybe not movies and books but wal-mmart has many things cheaper than amazon. That being said, I'd still rather pay a bit more and NOT have to go to wal-mart lol

Blasting brown notes for 10 years and counting!

N8DOGG is offline  
post #15 of 18 Old 09-02-2012, 11:49 AM
AVS Special Member
 
gtpsuper24's Avatar
 
Join Date: Aug 2008
Location: Ohio
Posts: 2,080
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Liked: 90
Sales tax isn't going to impact my purchase decisions or where I shop. I have to pay sales tax on any SVS or PSA subwoofer/speakers but that never stopped me from buying an SVS sub. It wasn't like "oh I gotta pay 6.75% more for the SVS sub? Maybe I'll just go to Best Buy and buy one of their subwoofers instead." I do almost all my audio related purchases online, why? cause its better products. No SVS, Arx, HSU, Emotiva, PSA, Aperion Audio quality at Best Buy. Nothing wrong with Best Buy but last time I was there a pair of Polk TSi towers would have cost around $1,000 vs Arx A5s at $850 shipped. Almost purchased a Onkyo 818 receiver at Best Buy for $1100 plus sales tax $1171 vs Amazon at $955 free shipping with an added tax I would pay $1017, $154 less.

I talked to the Magnolia guy at best buy and he said that the management team lets them price match Amazon on Onkyo stuff cause they are getting killed on prices. They will not according to him price match Marantz, Denon or the other high end stuff they sell.
gtpsuper24 is offline  
post #16 of 18 Old 09-02-2012, 11:56 AM
 
BeeMan458's Avatar
 
Join Date: Jun 2012
Location: Magalia, CA
Posts: 8,374
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Liked: 801
Quote:
Originally Posted by gtpsuper24 View Post

They will not according to him price match Marantz, Denon or the other high end stuff they sell.

Well, that takes BB off my X-mas list.

........................tongue.gif
BeeMan458 is offline  
post #17 of 18 Old 09-02-2012, 01:42 PM
Advanced Member
 
pukemon's Avatar
 
Join Date: Jul 2008
Posts: 776
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Liked: 16
I like paying taxes. biggrin.gif

butter and jelly please.
pukemon is offline  
post #18 of 18 Old 09-02-2012, 06:10 PM
AVS Special Member
 
Zen Traveler's Avatar
 
Join Date: Feb 2005
Location: Texas
Posts: 4,038
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 66 Post(s)
Liked: 282
Fwiw, I started a similar thread here and wonder when price is going to reign over quality when people stop auditioning speakers and rely on internet opinion:
http://www.avsforum.com/t/1425204/are-the-majority-of-speaker-sales-about-to-go-online#post_22319254
Quote:
Originally Posted by Zen Traveler View Post

I am curious if there is a big difference in MSRP vs what folks are getting Magnepan online for? I really can't imagine a person not going online to price-shop even if they purchase locally.
I also agree that the speaker company's reputation will be paramount, but the flip-side is if folks aren't comparing different brands and/or speakers some companies will rely on past Fan base and hire" fanboys" to go on the web to boost positive hits on any particular speaker googled.

Fwiw, I think it could already be starting to happen.
Zen Traveler is online now  
Reply Speakers

User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off