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  #21  
Old 08-15-2017, 11:51 AM
joey_v joey_v is offline
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If you want to see what happens when you don't control your pricing and protect your dealers - check out Cary Audio.

Good gear, I own their preamp...

But piss poor resale value. And I have no reason to buy them from a local dealer because of the ease of which you can call around to get the best deal.... hence, there are really no local dealers.

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  #22  
Old 08-15-2017, 12:09 PM
malba2366 malba2366 is offline
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Originally Posted by joey_v View Post
If you want to see what happens when you don't control your pricing and protect your dealers - check out Cary Audio.

Good gear, I own their preamp...

But piss poor resale value. And I have no reason to buy them from a local dealer because of the ease of which you can call around to get the best deal.... hence, there are really no local dealers.

It is a tough problem to protect the value of the product but to open up to a wider audience. I think Mcintosh and its affiliated brands have done a good job walking this fine line by opening up the lower end of products to online/phone sales and keeping the higher end dealer only...and as far as I can see Mcintosh resale values are very good even for the products that can be shipped. As a side note B&W products are available for online sales in their home market and other countries.

There are also a lot of people who take offense with these products being sold at BB Magnolia stores, but the way I see it this is a positive in getting the products visibility among mainstream customers. High end audio stores are a great avenue for audiophiles to purchase products, but not such a great avenue to reach a broader customer base which is important to stay in business. The ability of these companies to innovate and bring us the great products we all enjoy (at somewhat affordable prices) is predicated upon them being to sell some models at volume....the other option is for a brand to make great products but keep prices super high and unattainable to almost anyone (ie. magico, gryphon etc).

Most of the (bigger) audiophile brands have been purchased by venture capital firms, and other investors over the past few years. These investors main goal is to make profits, not the hobby. To keep the stream of new gear coming will require the opening up of new markets to satisfy the investors' return on capital. Also, there is now a competitor with very deep pockets, vast R&D capabilities, large distribution network and huge opportunities for synergistic sales (Samsung) with a big presence in this space, so other brands will have to aggressively seek out new customers while trying to hold on to their own.

Last edited by malba2366; 08-15-2017 at 12:33 PM.
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  #23  
Old 08-15-2017, 01:58 PM
Patrick Butler Patrick Butler is offline
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Hi malba2366,

I understood the context of what you wrote, and you didn't offend me.

Most people who buy our products (not including headphones and personal portables) do so because they heard them at a store. Short of that demonstration experience, there is no reason (a want if you will) to buy. Brick and mortar is an expensive proposition (product isn't free, people cost money, etc.) and retailers expect that manufacturers will help protect their investment. They are right to expect that. We've got the broadest possible distribution in North America, which makes going to a dealer as convenient as it can be.

Making everything for sale online isn't going to move the needle on my business. Short of a demonstration, there isn't really anything compelling that you can tell me that would make me want to buy a $2k pair of bookshelf speakers. But what moving business online will do is send a clear signal to our dealers that we don't care about them, and that will negatively impact my business in a massive way.

Best regards,

Patrick




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Originally Posted by malba2366 View Post
It was not my intention to say that firing him was a good move (I apologize if my post read that way, or offended anyone), and I am not complaining about anything....My point was that the antiquated sales policy might be hurting them with customers who are used to being able to research and purchase almost anything from the comfort of their home and have it delivered to their home rather than driving from store to store looking and negotiating.
The retail industry has been greatly disrupted by online shopping, and just like other industries that have been disrupted by technology those companies who refuse to move forward with the times could be left behind.
I can understand keeping the high end Diamond series under the current price policy but the CM/700 series and lower could be made available for online sales as those products can attract a much broader clientele who may not seek out high end audio retailers or live near a Magnolia store.
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  #24  
Old 08-15-2017, 07:06 PM
joey_v joey_v is offline
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Patrick said it best.
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  #25  
Old 08-17-2017, 12:05 PM
Richard D. George Richard D. George is offline
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I wish Doug Henderson good fortunes. Hopefully he will land a spot at a good company.
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  #26  
Old 08-17-2017, 02:51 PM
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Richard... Welcome to AA!

For your Support!
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  #27  
Old 08-17-2017, 04:08 PM
Richard D. George Richard D. George is offline
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Thank you.

You are welcome.
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  #28  
Old 12-05-2017, 04:18 PM
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Quote:
Originally Posted by W9TR View Post
Guys,
Throwing Doug Henderson under the bus and complaining about pricing policies and territory protection for brick and mortar dealers is just not appropriate for this public forum. Think about it, please. Thanks.
Tom
Yep. I'll likely purchase my new speakers from my "local" dealer as I want him to stay in business and am willing to pay a bit of a penalty for him to do so. Ain't no free lunch. If want a local dealer you need to support him (or her) when you can.
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  #29  
Old 12-05-2017, 05:49 PM
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Originally Posted by Formerly YB-2 View Post
Yep. I'll likely purchase my new speakers from my "local" dealer as I want him to stay in business and am willing to pay a bit of a penalty for him to do so. Ain't no free lunch. If want a local dealer you need to support him (or her) when you can.
+1
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