Could You Become an Audio Dealer? Magnepan Answers "Maybe"

by The Audio Beat | March 6, 2021

peaker manufacturer Magnepan is well known for the innovation of the planar-magnetic technology that is the centerpiece of its speakers. The company's latest innovation aims at bringing new blood to its dealer base and providing a blueprint for a new kind of audio dealer, one that takes advantage of online processes.

Magnepan calls this new kind of hi-fi seller the "virtual dealer." Wendell Diller of Magnepan uses the success of Mike Hoatson (right) of The Listening Room, in Baltimore, Maryland, as a guide for the virtual dealer. The backbone of this retailing strategy involves, first, the use of Zoom or WhatsApp for some customer interactions, especially speaker setup. Whereas an expected service of audio dealers has been in-home setup, Diller suggests that remote setup can replace this, because "a large percentage of our customers live too far from a dealer to provide in-person setup."

Next, a virtual dealer would embrace Magenpan's LRS speaker program to bring in new customers. The LRS is Magnepan's least-expensive model, at $650 per pair, and not one from which Magnepan makes much money. The company calls the LRS a "gateway drug"; it introduces customers to Magnepan speakers. The virtual dealer will use the LRS in welcoming new ways, including by having a stock of loaner pairs that potential customers can borrow, introducing them to the unique form and sound of Magnepan speakers. This introduction would later lead to customers wanting to hear larger Magnepan models, either in their homes or in the virtual dealer's retail space.

Investment is always a consideration for a new business. In this regard, Diller stresses the need for "a minivan and a room in your home for demonstrations" -- no traditional storefront necessary. "Other investment is in inventory of demo speakers; no real capital investment is required."

If this concept catches on, more than Magnepan will benefit. As a final point, Diller says, "We would like to see 'Mike Hoatson' dealers in every city, including smaller markets that lost their stereo store."