Trunk-Slammer said:
"Maybe sales were just so bad that some suit, or beancounter, decided it was time to take a shot at some other method of moving the line?"

Yep, I had a pretty candid discussion with a rep a while ago and was told that they just weren't selling much of the product against the many multi-zone systems available through distribution. The product (ZON) gets a lot of attention and awards, but just doesn't sell.

I think that Klipsh took a long hard look at what Polk was doing with NetStreams and decided they wanted a piece of that pie. They are coming out with a whole slew of CI speakers and wanted something to plug them into. They probably offered Oxmoor a trunkload of cash for exclusivity in distribution and Oxmoor whacked all the Rep companies (from what I understand).

This suspiciously mirrors the whole way that NetStreams has exclusive distribution with AVAD and Polk also distributes with them. The only difference is that NetStreams DigiLinx is a very open architecture (in comparison to ZON) and could really be an interesting line.

When I spoke with some folks at the ZON booth about the Crutchfield deal they were pretty blunt about the fact that they 'gotta do what they gotta do' to move as many boxes as possible. THAT is the business THEY are in. WE as custom dealers need to always remember that about manufacturers.

Audible Solutions said:
"Or we will morph into techology consultants and try to sell design services."

I had a funny reaction to that statement as it not necessarily being a negative. I haven't been around as long as many of you, but that is the very approach I take to every client and every system. The equipment is a means to an end. Yes, I need, (and very much want to protect!) equipment margins. However, with the above approach the equipment gets sold in a trusted relationship. After all, who in the heck ever "shops" the curtains that the interior decorator is specifying. It just gets invoiced.

My $0.02 worth...

Now that's FUNNY....Might someone ask Mr McCroskey why he thinks HD doesn't sell any of those shingles that they stock?



Oh ok. Crutchfiled is just going to showcase the line, so all the dealers will have better sales.....RIGHT.


Might someone ask Mr. McCroskey to get HIS head out of HIS a**?

Were I a ZON dealer, I would absolutely dump the line in a heartbeat. Will sales be affected? If we were talking about the average "name" product line, no. But since you're talking about a no name item, I do believe so.

Without going into too much detail, my understanding is that Klipsch basically took control of the company several weeks or maybe even months back, but the deal didn't officially go down until the start of the CEDIA show.

I'm guessing that Klipsch figures that they'lll have a pretty good chance of selling the product through their network of existing Kliipsch dealers, which is approaching the point of having one per street.

How many of them buy into it willl be very interesting to see.

From what I have heard on the street Klipsch tried to make the same deal with Netstreams as Polk did.

I did not hear why they would partner with Polk but not with Klipsch.

Anyone know why?

Audible.
The problem with our industry is we, speaking as our group, are trained to SELL SELL SELL. We don't listen to our clients needs. The key is to listen to their needs and provide a solution to the needs. I just walked away with a $35,000 job yesterday because I listened. The other guy didn't listen and ran th cost over $200K. Unfortunately, not all the jobs need to be Ultra Techno. I find very few of my clients want full lighting control and home control. It is usually the architect trying to show off for their clients.
In my territory, which is less than 10 square miles, there are probably 20+ homes with $300K automation systems in them. I haven't seen one yet that was reliable. I have seen MANY put in the trash and settled in court. I am confident that the failure lies with both the installers and the very poor quality electric on our island. It's very unfortunate for our industry. I wish, we as group, could get it together.
All I can say, the secret to survival is SERVICE. Sell yourself not your product. Your clients won't allow you to fail. They will be your best advertisement and future leads.
Sorry for the rant!

He would like it available through Crutchfield so he can be guaranteed to make the sale by selling it for less than MAP. He never said he wanted them to buy it from Crutchfield.

As I'd mentioned, Crutchfield isn't the real problem. It's the willlingness of the manufacturer to sell to places SUCH as Crutchfield.

It's the tell tale "this line is about to be whored out" signal.

The next thing that they'll tell you after they setup the mass merchandisers is "well, we've already been in Crutchfield for a year and that hasn't caused you any problems, so what difference does it make if we setup Megalowmart."

The basic premise is weaning the dealers into their new marketing strategy.

I would encourage everyone to remember that with all of the choices that we have these days, why bother supporting someone who's stabbing you in the back and doing it with a smile on their face?