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The technique has enabled Richer Sounds to secure itself a lucrative niche in a £4 bn audiovisual market dominated by independents.
While leading multiples stock mainly the mass market, volume selling midi systems which became popular in the early 1980s, Richer Sounds sells only hi-fi separates such as tuners and amplifiers. It buys either end-of-line ranges which manufacturers are hoping to off-load before the next, cosmetically different model arrives from Japan, or small orders of current models which, perhaps because of poor stock management, the manufacturer is prepared to sell at a reduced price. Now, as manufacturers' stock control improves, three-quarters of its stock is current models.
Suppliers are keen to do business with this quirky* retailer. "People like Dixons and Comet have so many stores (344 and 262 respectively) that unless you've got 5,000 of a model it's not worth their while putting it into their distribution system," says Clive Roberts, sales and marketing director of Akai. "With Richer, you can do a deal on 30."
Marketing is a key weapon. Richer Sounds advertises regularly in national newspapers ("We buy late space at a discount," Richer says) and in alternative* magazines such as Private Eye and Viz. Every month it produces up to 350,000 copies of a brochure pushing the latest offers.
The shops are like walk-in warehouses. Outside, ''bargain bins" tout special offers including audio cassettes for 59p. Inside, compact disc players, tuners and speakers from leading names such as Sony, Akai and Marantz are stacked from floor to ceiling.
Banners hanging from the ceiling proclaim: "If you've seen it cheaper, we'll beat that price by up to £50."
Good service is another priority. At Richer Sounds staff are trained not to be pushy*. They all attend two training seminars a year at Richor's country house in Yorkshire, where more attention is paid to following the correct administrative procedures.
First-time hi-fi buyers get a call to check that they have plugged in the equipment correctly. Customer receipts include a freephone number they can dial if they have a problem. Richer's own name and office number are supplied too.
The emphasis is on fun. If it's raining, customers are given a free umbrella. In summer they get a Chilly Willy (a type of ice lolly). Other seasonal gifts include mince pies at Christmas and hot-cross buns at Easter. "We have a laugh," Richer says. "We don't take ourselves seriously, but we do take our customers seriously."