Hi Folks
What are your thoughts on opening a discontinued and refurb product store on our website ?
james
This begs the question... what is happening with these products now? Assuming the Bryston dealer network is being used to sell these units at present, there are margin improvement opportunities having Bryston transition to dealing directly with consumers for these products.
In addition to offering discontinued and refurbished products direct to consumers, I suggest a bigger and more profitable opportunity exists.
I note the high volume of transactions (based on my observations only) for used Bryston products on reseller sites like eBay and the Audiomarts, for example. I also note the pricing of used Bryston products is far from inexpensive indicating that used products retain their value.
It would make sense for Bryston to participate in this active and relatively high value aftermarket for their products especially when many units in this market are being serviced for free based on Bryston's generous warranty program. I believe Bryston would gain more customers who are otherwise hesitant dealing in the current aftermarket.
How would Bryston enter this market in a bigger way? I suggest a trade-in program using the existing dealer network. A dealer sells a new unit to Customer A who has a Bryston product to trade-in. Based on a Bryston trade-in valuation table, the dealer knows what credit he will receive from Bryston and makes a sale to Customer A. Dealer sends traded in product to Bryston for credit against future purchases. Bryston brings the trade-in up to spec (which it would have done anyway under its warranty program) and now has a unit to offer direct to consumers on the Bryston resale site.
Existing Bryston product owners would be more likely to upgrade knowing that they don't have to deal with eBay or the Audiomarts. New customers to the Bryston brand can be obtained knowing that they are buying used equipment directly from the manufacturer at a price point below what current products sell for.
All the while, Bryston is keeping a closer connection to its customers while increasing margin opportunities.
You have a great idea.
My 2 cents.