The inside view
By Steven B. Zaboji
Founder and President, Balaton Marketing, Inc.
Sterling, Virginia
As a long-time manufacturer’s sales representative in consumer electronics, I have had the opportunity to interact with thousands of consumers seeking information on buying Hi Fi stuff or who had problems in resolving issues relating to their equipment or the retailers where they made their purchase.
Like the technologies that we represent, the distribution channels through which consumer electronics are sold have proliferated in numerous and confusing ways. Since I often field questions as to where to buy things, what to buy or how and where to get equipment fixed, I thought I would devote this month’s column to an overview of my industry’s selling channels.
In the beginning there were many customers who were chasing relatively few products. Most retailers or Hi Fi “shops” as we called them were owned and run by audiophiles or hobbyists. Their primary purpose was to display and connect all the available components, e.g., loudspeakers, amplifiers and record players (turntables) and to make them available for comparative “A and B” shopping.
Our industry grew rapidly and soon real business people were in the game. Competition grew fiercely, regional and national chains stores like Circuit City and Best Buy sprung up, and the fledgling mail order/discount operators were literally put on marketing steroids via the ubiquitous Internet. The centralization of information via Google, Amazon and others has changed the shopping landscape forever. The Internet and the power of its viral communication has profoundly altered the business landscape, and anyone who wants to do their due diligence in purchasing anything can now do so with relative ease and transparency.
Unfortunately, the feeding trough of our industry is no different from any other as evidenced by the sales chicanery by unscrupulous brand-equity thieves who misrepresent products and services in order to capture the dollars from hopeful and easily deceived consumers.
Here is my point: When buying anything, please remember that there is no such thing as a free lunch. When buying consumer electronics consider what it is that you are trying to accomplish and try to find the resource that is commensurate with the job at hand. When you purchase anything from a retailer or e-tailer make sure that they are authorized by the respective factory to sell and service the product you are considering purchasing.
Mature manufacturers do care about a consumer’s experience with their products and go to great length to maintain an orderly market. Conversely, the more successful a manufacturer is, the more the brand-equity thieves target their products. Most manufacturers will not honor warranties if their product was bought from an unauthorized dealer -- so be certain who you are dealing with.
If your consumer electronics purchase includes some complexity for installation, you'd be wise to seek out a local custom installer (check out www.cedia.org) or audio specialist for advice and installation. Personally, I recently updated my own home theater, and this time I utilized a professional custom installer to detail the wiring and to install and program a Universal Remote Control system. The experience was transformational and I am grateful for the professional who made it all happen. Good listening!
About the writer: Steven Zaboji is a veteran of the audio-video industry, having started as a sales rep for major retailers. He founded Balaton Marketing in 1972 and currently represents some 14 product lines relating to home entertainment systems. Zaboji is also the founder and CEO of an e-publishing company called Virtual Representative. He is writing a book about his experiences in the industry and on his love of flying to be called “Business on a Wing.”
Contact Zaboji at www.balatonmarketing.com or at his e-publishing company, www.virtual-representative.com.