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Higher Prices: Are Specialty A/V Dealers Ripping You Off?
Sometimes you pay more for A/V gear when purchased from a specialty shop, and often there's a very good reason for it.
October 04, 2010 | by Julie Jacobson

As a customer I think the selling of regular equipment (TVs, Blu-rays, receivers) is where CIs [custom integrators] hurt themselves the most. I remember when I was buying a Pioneer Kuro. MSRP was I believe $6,500 and the CI wanted to sell it to me for $6,200. Best Buy quoted me $5,000 for it.  You can’t expect me to say, “No problem, I’ll pay you an extra $1,200 for getting the same exact thing from Best Buy.”

That message came from JackB via CEPro.com, our sister web site for custom electronics (CE) professionals.

CE pros and specialty A/V retailers will give you all sorts of reasons for charging more for their wares. Some of those reasons are valid. Others not so much. Here are some reasons you might be better off paying a little more for an A/V product that may be sold elsewhere for much less.

Same Product, Higher Price

It usually goes like this: Why should I buy that TV from you when I can get the same thing from Best Buy for $500 less?

That’s a very good question. These days, many CE pros let you bring-your-own-TV to the party. It saves them from the headaches of shipping, repair and inventory management (not to mention client haggling).

So if they’re all too happy to relinquish those burdens, are you OK with taking them on?

Test-Drive Before You Trade Up

TVs, receivers and other critical A/V components are one thing. But what do you say to a dealer who wants to sell you “better” speakers, cables or power management products?

You can say, “Show me.”

Many specialty A/V retailers will let you try before you buy a pricey HDMI cable or magical black box. They’ll let you experience the splendor of premium speakers in your own listening environment.

Here’s a trick: Live with your original choice of gear for a few weeks. Then live with the dealer’s choice for a few weeks. If you experience more joy with the better set-up, then step up.

You’ll have to source the product, possibly pay for delivery, schlep the display upstairs, store the unit until your installer is ready, keep the bulky box until the warranty period expires, handle returns and repairs—a nightmare if the TV is already mounted – and do all of those other little things you’ve come to hate about buying and maintaining a TV.

How much would you pay to rid yourself of those nuisances? Some may pay quite a bit, others nothing at all. If you’re in the second group, hunt for a CE pro that wilI let you BYOT.

Different Product, Higher Price

Often, CE pros will try to convince you to buy the brands they happen to carry simply because they make more money doing so. These TVs may be specialty brands that you can’t price-shop on the Internet. Or they might be higher-margin products for the dealer.

Very possibly, however, the professional installer might just recommend a more expensive TV because – here’s a shocker – it could be better suited for your space. Perhaps it produces brighter pictures in a multipurpose room, for example, or it allows wider viewing angles for your buddies to enjoy.

On questions of picture quality, it usually comes down to trust. Do you believe what the salesperson is saying?

However, there are other reasons for buying the dealer’s preferred brands – reasons that are very real, but often invisible to the customer. For example, your dealer may have an excellent relationship with a particular vendor that has a proven record for on-time delivery and aftermarket service. Don’t underestimate the value to you of a manufacturer that serves your installer well.

Another biggie: It can be a tricky thing to integrate a TV or other A/V component into a control system, what with the nuances of HDMI, complicated power-saving features, and most importantly the control protocols that are unique to every brand. If you insist on a brand that your dealer does not carry, you will almost definitely pay more for installation, integration and service.

When possible, go with the brand that the dealer knows best. If you’re set on a specific brand, find a CE pro that already carries that line.

 

 



Julie Jacobson - Editor-at-large, CE Pro
Julie Jacobson is co-founder of EH Publishing and currently spends most of her time writing for CE Pro, mostly in the areas of home automation, networked A/V and the business of home systems integration. She majored in Economics at the University of Michigan, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. Julie is a washed-up Ultimate Frisbee player with the scars to prove it. Follow her on Twitter @juliejacobson.



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Comments (3) Most recent displayed first.
Posted by Bill  on  10/05/10  at  12:51 PM

Couldn’t agree more.  I picked up a Sony projector this spring and a local CI guy was only 50 bucks more then the best Amazon price.  Talk about a no brainer on a 3K piece!  I lament the demise of the small AV shop.  There is no place to get a decent demo anymore. Sure BB is handy but thier people are about as smart as doorknobs, for the most part.  I also have heard them outright lie to customers and don’t get me going on the deceptive Monster cable demos I have seen.  My favorite was two 42 inch TVs playing off a single DVD player. One was Monster cabled via components and the other a composite video input.  The sign said in big bold letters that the difference Monster makes over what comes in the box is easy to see.  What they don’t tell ya is 3 RCA jacks from Radio Shack at a buck or two total could do the same thing.  I have a hard time believing a small AV dealer could stay in business being so deceptive.  Of course, I still may be angry at myself for not buying Best Buy stock at the IPO that I was offered 25 years ago, but thats a whole other story.

Posted by Jason  on  10/05/10  at  11:58 AM

Speaking as a DIY guy, I understand the *potential* value of paying CI people more for the same product… you’re dealing with someone who is going to have a relationship with you and with your equipment, not just sell you something and move you out the door, and that relationship extends to sourcing, shipping, handling, and maintaining, all things that have a concrete value (as long as you’re dealing with a reputable installer).

People that don’t get that either don’t have any real context to understand what that higher quality of service is like, or the CI guy isn’t doing a good enough job of educating the customer.

That said, for someone like myself, the potential issues that I would have to handle really aren’t a big deal.

As for a different product being a better fit with the CI or the space, that all comes down to properly educating the customer.

Posted by Bob Cole  on  10/05/10  at  07:00 AM

The sad thing is, many of us who are ligitimate CI guys, especially the custom retailers, sell everything at the same price as Best Buy! We have to.  There is the presumption that they are less but it’s not necessarily true. 

Your point is, what is best for the end user. Best Buy wants to move a box. The good CI guy has that persons best interests at heart and wants to provide him a better experience - and has the skills to do so, hopefully. The smaller guys are sometimes out of the loop and maybe not in tune w/ the street price, and some, as you mention, really don’t care. 

There is too much smoke and mirrors and snake oil in this business right now and, frankly, most consumers have no idea what they are really getting.  They need to deal with someone they trust because this stuff becomes part of their life for a long time. It’s been my experience that most people understand this - or let’s say enough do that there is business for all.

Bob



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