in Search
Untitled Page

ARCHIVED FORUM -- April 2007 to March 2012
READ ONLY FORUM

This is the first Archived Forum which was active between 17th April 2007 and 1st March February 2012

 

Latest post 07-06-2008 2:39 PM by Greg. 23 replies.
Page 1 of 1 (24 items)
Sort Posts: Previous Next
  • 07-02-2008 12:22 PM

    • Greg
    • Top 500 Contributor
    • Joined on 04-17-2007
    • London, UK
    • Posts 109
    • Bronze Member

    I'm thinking about applying to open a B&O store...

    ...am I insane?

    I should say I considered this very seriously, had all the figures etc from B&O, back in the late 90s but didn't go through with it. Now, should probably be an even less sensible idea since technology is moving faster than ever and B&O a little slower than usual... plus the whole 'credit crunch' situation...  is this a crazy idea I should instantly park, I wonder...

  • 07-02-2008 12:39 PM In reply to

    • Craig
    • Top 10 Contributor
      Male
    • Joined on 03-29-2007
    • Costa Del St Evenage
    • Posts 4,855
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    Greg:

    ...am I insane?

     

    Yes, but if you think you can make a go of it. Why not, I know I would if I had the chance.

     

    CraigSmile

    For millions of years, mankind lived just like the animals. Then something happened which unleashed the power of our imagination. We learned to talk and we learned to listen..

  • 07-02-2008 12:59 PM In reply to

    • 9 LEE
    • Top 10 Contributor
    • Joined on 02-14-2007
    • Moderator - UK
    • Posts 5,223
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    Well, it's the right time if you take into account the fresh approach from the new UK 'CEO' Lars Flyvholm.  I saw a statement he released to dealers and if his intentions are carried out we will see a huge improvement in the service and support dealers get.

    As for the market at present, it will certainly take a great deal of effort and commitment to make it work - but you will reap the rewards when the economy eventually picks up as you will have an established business all ready and waiting for the good times!

    Lee

    Smile

    BeoWorld - Everything Bang & Olufsen

  • 07-02-2008 1:52 PM In reply to

    • Greg
    • Top 500 Contributor
    • Joined on 04-17-2007
    • London, UK
    • Posts 109
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    9 LEE:

    Well, it's the right time if you take into account the fresh approach from the new UK 'CEO' Lars Flyvholm.  I saw a statement he released to dealers and if his intentions are carried out we will see a huge improvement in the service and support dealers get.

    As for the market at present, it will certainly take a great deal of effort and commitment to make it work - but you will reap the rewards when the economy eventually picks up as you will have an established business all ready and waiting for the good times!

    Lee

    Smile

    I must admit that was kind of my thinking. It's a gamble of course, but B&O are talking a good game (in terms of new product and infrastructure) and as you say better to building up the business in the slow times and firing on all cylinders when the market picks up.

    I guess the issue is not so much effort and commitment - I'm certainly prepared for that - but the very large financial commitment, which would result in some exposure for my wife as well.  

    I've sent off an email request, so we'll see what B&O have to say about it ;-)

     

  • 07-02-2008 1:54 PM In reply to

    • ®
    • Top 75 Contributor
    • Joined on 04-01-2007
    • UK
    • Posts 970
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    Good luck, you'll need it.

  • 07-02-2008 2:01 PM In reply to

    • Greg
    • Top 500 Contributor
    • Joined on 04-17-2007
    • London, UK
    • Posts 109
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    britops:

    Good luck, you'll need it.

    Yes, that's exactly what prompted the 'am I insane' question. Although I'm not overly concerned by share price per se, not being an investor as such, one has to assume that dive is a reflection of poor sales in the stores - and that of course does concern me. We'll see. 

  • 07-02-2008 2:28 PM In reply to

    • 355f
    • Top 100 Contributor
    • Joined on 04-19-2007
    • Posts 655
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    Greg:
    britops:

    Good luck, you'll need it.

    Yes, that's exactly what prompted the 'am I insane' question. Although I'm not overly concerned by share price per se, not being an investor as such, one has to assume that dive is a reflection of poor sales in the stores - and that of course does concern me. We'll see. 

     

    I think for one to take on such a proposition at the present time one would need to be in the category of a barking millionaire.

    The way the franchise system works for B&O means that the rapid growth one saw in new dealerships and ever increasing product pricing had the effect of minimising the general downturn in sales to B&O- so the sales figures are a lagging indicator.

    I would wait and see if the new sourcing strategy from B&O results in better products with pricing that will be realistic.

     

  • 07-02-2008 3:09 PM In reply to

    Re: I'm thinking about applying to open a B&O store...

    In a word, mad or rather sheer madness.  If you have the money, sure but if you are going to be chasing sales than I would hang fire for at least 3-5 years for the current mess to settle before investing the sums of money required to open a franchise.

  • 07-02-2008 3:17 PM In reply to

    Re: I'm thinking about applying to open a B&O store...

    I would wait at least a year, and don't forget: location, location, location...

  • 07-02-2008 4:59 PM In reply to

    • 355f
    • Top 100 Contributor
    • Joined on 04-19-2007
    • Posts 655
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    wtlc2zpx:

    I would wait at least a year, and don't forget: location, location, location...

     

    Not so sure about that one.

    I think the high costs associated with high street stores is simply to much for the new climate we find oursleves in.

    How many specialist hifi dealers have prestigous high street stores?

  • 07-02-2008 5:28 PM In reply to

    • 9 LEE
    • Top 10 Contributor
    • Joined on 02-14-2007
    • Moderator - UK
    • Posts 5,223
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    I do tend to agree there.  High street locations are for impulse buyers in general. A high value Bang & Olufsen purchase is rarely an impulse purchase on a Saturday afternoon shopping with the wife and kids.  It does help brand awareness of course, but that's the job that B&O should be looking after - as well as the franchise owner in a local sense of course.

    Personally, a Bang & Olufsen purchase was an 'event' for me - as was even browsing, and in a stange way it made it even more special if i had to make an effort to get there.  The cherry on top was an unhurried sales demo thanks to the lack of morons walking in off the high street to gasp at the prices, tell how his Sony was five times better and an eighth of the price and generally waste the salesmans time.

    Sorry to mention the name on the forum, but when i chose the location for LifeStyle AV i purposefully went for a premises out of town. Not only was the rent over 60% less than a town centre location, the rates were cheaper and i know that every customer i see is a serious one.  If someone visits my shop, i am delighted to give them all the time they need as they are serious enough about the brand to come and find me, even if they don't buy anything.

    In boom times, it's great to have flagship stores in premium locations - but when it's time to batten down the hatches, overheads are everything.. 

    Lee 

    BeoWorld - Everything Bang & Olufsen

  • 07-02-2008 5:37 PM In reply to

    • ed7
    • Top 200 Contributor
    • Joined on 12-06-2007
    • uk
    • Posts 297
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    definitely a quick way to be a millionaire but you must be a billionaire to start withStick out tongue

    good luck

  • 07-02-2008 5:53 PM In reply to

    Re: I'm thinking about applying to open a B&O store...

    9 LEE:

    I do tend to agree there.  High street locations are for impulse buyers in general. A high value Bang & Olufsen purchase is rarely an impulse purchase on a Saturday afternoon shopping with the wife and kids.  It does help brand awareness of course, but that's the job that B&O should be looking after - as well as the franchise owner in a local sense of course.

    Personally, a Bang & Olufsen purchase was an 'event' for me - as was even browsing, and in a stange way it made it even more special if i had to make an effort to get there.  The cherry on top was an unhurried sales demo thanks to the lack of morons walking in off the high street to gasp at the prices, tell how his Sony was five times better and an eighth of the price and generally waste the salesmans time.

    Sorry to mention the name on the forum, but when i chose the location for LifeStyle AV i purposefully went for a premises out of town. Not only was the rent over 60% less than a town centre location, the rates were cheaper and i know that every customer i see is a serious one.  If someone visits my shop, i am delighted to give them all the time they need as they are serious enough about the brand to come and find me, even if they don't buy anything.

    In boom times, it's great to have flagship stores in premium locations - but when it's time to batten down the hatches, overheads are everything.. 

    Lee 

    I believe you're right Lee. I like to visit specialist shops myself and often find the best ones are not in the High street. There are exceptions to the rule of course...

    Beoworld's twenty-eighth ninth prize winner and fifty-first second prize winner. Best £30 I've ever spent!

  • 07-02-2008 6:57 PM In reply to

    • beoaus
    • Top 150 Contributor
    • Joined on 04-16-2007
    • Melbourne, Australia
    • Posts 445
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    I would say possibly...

    "Buy in gloom sell in boom" . If you have the finance and can weather the storm you may have a good negotiation point for a start. This may lower your initial commitment, terms, whatever.

    ...It is really is tough to see where B&O are headed or where they will be placed in a few years. Then if B&O are focusing on rationalisation they may not even want new dealers...

    Good luck, beoaus.

     

  • 07-02-2008 7:55 PM In reply to

    Re: I'm thinking about applying to open a B&O store...

    Sounds like a great idea.  However, perhaps waiting a few months may be prudent, it would be of great interest to know what the new CEO's plans are for the company.  

    In the future, I am looking to be 'silent' partner in B&O store here in the US.  Michigan lost its only B&O store.  The market here could support a store.    

     Key is going to be the buying experience, which I think is something too many store forget.  

    Good luck and keep us posted,

    Dario 

    When I hear music, I fear no danger. I see no foe... Thoreau
  • 07-02-2008 9:23 PM In reply to

    Re: I'm thinking about applying to open a B&O store...

    I think timing this is tough. I mean you have many month lead time before you open up. I personally would wait though, to see what moves they make with product releases.

    Based on what I read here, they might get back on track. If we do get a new multi HDMI chassis for BV7 32 and a BV 8 40 and BC6  I would think that means they got the message.

    Question is, how far are they with that. Current product range is in my opinion difficult to sell. And I am not talking about specs of the screen, I am not overly impressed with the minor improvement concept that the industry is driving. But some things just need to be there, read HDMI connections.

     For Music systems I think they are cool, if they bring BS5 and it does bring the sparkle back into the eyes of the customer - great. If then they would bring that remote concept for the kitchen that we saw here, that should help as well.

     

    So in a nutshell, I would look for the product introductions and updates in the years end report that comes out in August. Economy can swing either way between starting the process and opening the shop door for he first time, so I wouldn't worry much about that.

    BS9000, BS2300, BC2, BL2500, BL3, Bl2, BS1, BV8, BC4, A8

  • 07-03-2008 1:41 AM In reply to

    Re: I'm thinking about applying to open a B&O store...

    Over the pond and up north, the B&O store here in Toronto is on the prime high end shopping area (Gucci, Cartier, LV, Hermes, etc.). They are apparently quite busy and supported by a strong client base. Parking is not so convenient, but you can always double park briefly for loading.

    I guess if you have deep pockets to grow and gather a loyal client base, then it could be a good time to get in. As an observation, most people who can truly afford luxury items are typically recession friendly. If they want one, they just buy one, regardless of world economics.

    Not to beat a dead horse, product knowledge is key. Also, you have to consider technical support, install, and repairs.

     

    Exciting times! Good luck!
     

  • 07-03-2008 2:46 AM In reply to

    • camshaft
    • Top 150 Contributor
    • Joined on 04-16-2007
    • Pennsylvania, USA
    • Posts 575
    • Founder

    Re: I'm thinking about applying to open a B&O store...

    I think its a bad idea.  When you're talking about business, you can't let your passion for the brand be your driving force.  If it were a 'widget' brand, rather than B&O, and you saw that this widget company was in the same current state and financial situation as B&O, would you be as eager to open your widget store?

    Austin 

    -Austin (resident audiophile skeptic)
  • 07-03-2008 7:36 AM In reply to

    Re: I'm thinking about applying to open a B&O store...

    Greg:

    ...am I insane?

    I should say I considered this very seriously, had all the figures etc from B&O, back in the late 90s but didn't go through with it. Now, should probably be an even less sensible idea since technology is moving faster than ever and B&O a little slower than usual... plus the whole 'credit crunch' situation...  is this a crazy idea I should instantly park, I wonder...

    Greg, I think you should go for it and set up a dealership in Plymouth, where its sunny all year round Big Smile. I will be your first customer Smile

    Never Mind The Ball-Cocks www.markmossplumbing.co.uk

    A labourer uses his hands
    A tradesman uses his hands and his head
    A craftsman uses his hands, his head and his heart

  • 07-03-2008 9:37 AM In reply to

    Re: I'm thinking about applying to open a B&O store...

    One of the prime causes of failure of new venture start ups is inadequate working capital.

    So,three basic questions.

    Do you have enough start up capital,and an adequate contingency fund?

    Could you comfortably weather the failure of the venture?

    Have you identified the size of your target demographic in the proposed area of business?

  • 07-03-2008 10:22 AM In reply to

    Re: I'm thinking about applying to open a B&O store...

    Hi Greg,

     We will se in a couple of years whether you were insane or not!

    I have just bought my own Bang & Olufsen store and i am willing to help you with some advice and tips.

    First of all i hope that you know that this is the worst possible time open an Bang & Olufsen store ie. the world economy. EVERYONE can feel irt right now. Second; are you ready to drown yourself in papers en masse? the daily operation of a Bang & Olufsen store involves a lot of computer/accountant knowhow Third; are you ready for the econimical strees that will surface sometimes?

    Then ask yourself these questions:

     How many potential customers are there where you plan to open? Where is the closest Bang & Olufsen store?  Have you got any salespersonnel lined up or are you the salestalent? Who will install and service the products? Do you have someone to fill out all the daily operation papers? What if you have a bad month? or two? or three? Will this break your private economy? Do you have a good network?

    If you want some more advice from a recent storeowner dont hesitate to call me 0045 20303102

    Henrik

     

    BeoVision10-46MKII,BL3,BL2,BS8,Beo5

  • 07-04-2008 11:53 AM In reply to

    • Greg
    • Top 500 Contributor
    • Joined on 04-17-2007
    • London, UK
    • Posts 109
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    First of all, thank you so much to all of you who've given this great input. The initial information from B&O arrived in the post this morning, so I will review it all over the weekend and give it a lot of consideration! I will certainly keep you posted and will pick up with one or two of you offline which I hope is OK!

    If I go ahead, it would be in an area I know well which is pretty affluent, and a reasonable density of population, but not already well served by existing stores (but not Plymouth, sadly - although the seaside is quite appealing!). As for salespeople, I would look to 'poach' some people I have already worked with at a well-known retailer of computers and mp3 players (and more recently phones). I also have someone in mind for the installation team, and have a reasonable level of tech and finance experience having done various systems management jobs in investment banks.

    I guess what does worry me somewhat is the financial exposure - not sure I could afford to lose it all.

    Anyway, more consideration required... I'm still far from certain it's a good idea!

    Thanks again,

    Greg. 

  • 07-04-2008 12:12 PM In reply to

    • 355f
    • Top 100 Contributor
    • Joined on 04-19-2007
    • Posts 655
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    There is another aspect.

    B&O historically had a product range that lasted for years but im not sure the high tech revolution has done the dealers many favours.

    With flat screen technology moving so fast the prices of previous models falls in a dramatic way- what was a non HD BV5 worth - 12800 new - less trade discount. But to dispose of this the realistic  value- 60% less. This is replicated throughout the flatscreen range.

    So almost all dealers are discounting heavily to get business, which means it will be difficult to ask full retail, then one has to sell a lot of tvs to cover the losses on outdated stock.

    In my opinion the game has moved on, B&O want to much money up front, demanding sites that are to expensive for the available business now. In fact they need to reduce the number of dealers in the UK by some margin as the new sales figures will not support the business as it once was.

  • 07-06-2008 2:39 PM In reply to

    • Greg
    • Top 500 Contributor
    • Joined on 04-17-2007
    • London, UK
    • Posts 109
    • Bronze Member

    Re: I'm thinking about applying to open a B&O store...

    355f:

    There is another aspect.

    B&O historically had a product range that lasted for years but im not sure the high tech revolution has done the dealers many favours.

    With flat screen technology moving so fast the prices of previous models falls in a dramatic way- what was a non HD BV5 worth - 12800 new - less trade discount. But to dispose of this the realistic  value- 60% less. This is replicated throughout the flatscreen range.

    So almost all dealers are discounting heavily to get business, which means it will be difficult to ask full retail, then one has to sell a lot of tvs to cover the losses on outdated stock.

    In my opinion the game has moved on, B&O want to much money up front, demanding sites that are to expensive for the available business now. In fact they need to reduce the number of dealers in the UK by some margin as the new sales figures will not support the business as it once was.

     

    You make some really, really spot on points here.  A key aspect of B&O's appeal (to me, at least, and I suspect to many customers) was that they were rarely if ever first to market with a new technology, but would wait for it to 'bed in' and then come to market with a very good implementation, with very high build quality, which would last for years and be sold in more or less the same form for many years.  This philosophy, while still appealing in some respects, is perhaps fundamentally at odds with the vastly increased rate of technological change in this industry over the last 5 years.

    Having said that, I think there's a certain amount of 'tech fatigue' among consumers - I believe part of the slow uptake of blu-ray has been that consumers have already had to move from VHS to DVD, from CRT to LCD/Plasma, from non-HD to HD or Full HD. They also have to choose Sky or Freeview or Freesat or DVD recorder or HDD recorder or PC Media Centre or Apple TV or Location Free or Slingbox or.... it's become such a fast paced and complex world that I believe we're reaching the limits of consumer's appetite for change.

    Also, the kind of changes that might happen in the next 5-10 years, and the hardware requirements for them, have already been amply telegraphed (e.g. adding gigabit ethernet and N wifi, with ability to play HD content from the internet or - B&O - home media server).

    A bluray-capable DVD drive, 5 HDMI ports, and very high quality surround (with ability to decode HD audio formats) - even the ability to outsource audio processing to the anticipated new 'audiophile' B&O audio system - these things should be a given. 

    A company like B&O, if its new management are sharp enough, should be able to deliver something quite special that is probably future proof for 5-10 years.

    Then, I think, there's scope for future business to sustain or create the right quality of dealership in the right places with the right customers. Agreed some existing dealers may go. I don't really believe that B&O are looking to take on more franchisees than they'd like, just to bank the franchise fees and put the stocking merchandise down as sales... surely the brand is too valuable to do that??

Page 1 of 1 (24 items)