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Listening to it! Listening to other similar devices. Getting the opinions of others. Check the wallet.
You've decided to add a new piece of equipment to your system. Now begins the process of figuring out which make and model you want. How do you test products to make sure you get the right stuff?
Arm with 5 favourite and familiar CD, change one component at a time. Narrow down to 2 or 3 components. Do a second round. Choose the one I like most! Pay for it. Take it home. Wire it up and run in. And it never sounds as good as in the demo room...
I like to buy my equipment used, first I determine how much I can afford to spend. Then, I start looking in the paper, online, go to different stereo stores etc. After I locate a piece of gear, I try to do as much research as I can, then listen to the equipment, preferably in my system.
Listening to my current system and making comparison listens to various upgrade products. Some of the first components I bought on instinct, or recomendation, or price, and also comparison shopping. I try to listen and compare when possible, either in the salesroom, or my own listening room.