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Topic:
Nortek acquires Panamax
This thread has 8 replies. Displaying all posts.
Post 1 made on Friday April 29, 2005 at 10:40
juliejacobson
CE Pro Magazine
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Nice little custom powerhouse now with Linear, channelplus, omnimount, Xantech, Elan, SpeakerCraft, M&S.

Press release is here: [Link: media.prnewswire.com]
"CEPro: your website sucks!" - Fins
www.cepro.com
[Link: twitter.com]
Post 2 made on Friday April 29, 2005 at 13:36
2nd rick
Super Member
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I wonder if the P'maxes will now qualify to extend the Elan warranty like the Z Power does...

I would actually use a P'max on purpose.
I think that the warranty extension is about the only reason anyone EVER used the Z Power.

They should allow the extended component warranty to extend to the 'Craft ms/mz preamp too.
Rick Murphy
Troy, MI
OP | Post 3 made on Friday April 29, 2005 at 13:49
juliejacobson
CE Pro Magazine
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On 04/29/05 13:36 ET, 2nd rick said...
I wonder if the P'maxes will now qualify to extend
the Elan warranty like the Z Power does...

Great question. I'll ask. It would sure make sense.

In general, there seems to be little if any collaboration between the various Nortek brands, other than cost savings from shifting some manufacturing to Nortek plants in Asia. (I discuss that here:
[Link: blog.ce-pro.com])
"CEPro: your website sucks!" - Fins
www.cepro.com
[Link: twitter.com]
Post 4 made on Friday April 29, 2005 at 14:11
2nd rick
Super Member
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They also shifted Channel Plus/Multiplex tech support into the Linear facility a few years back and the RF system design tech support gurus of the early/mid 90s seem to all be gone...
I guess they are not needed as much aanyway with the Open House modules that do all of the designing for you.

Here are a couple more minor brand amalgamations:
1) 'Craft is supposed to have a copycat to the Elan Z600/601 comm module for their new MS/MZ system
2) Xantech is shipping a branded version of the Elan DTNR (which is made for Elan & Xantech by Teac).
3) Open House structured wiring products are now in the 'Craft dealer book, and numbers there help your program with the rest of the line.

I would be shocked if they DIDN'T roll out re-badged models of the current Elan, Proficient, or 'Craft speakers with the Xantech name in the next year or so to fill in that lineup, especially considering that they ultimately want the three lines to stand on their own legs and not necessarily cross pollinate the lines in the same dealers.

Maybe even Open House under all brand names, Xantech IR under all brand names, Panamax surge/line conditioning products under all brand names, Elan's coolio sources and add-ons (Via DJ, DTNR, Z 880/881, and the Z600/601) under all brand names, and 'Craft speakers under all brand names.

If the Open House experiment works with Speakercraft dealers, I think this will eventually happen.

Why allow the dealers to go to the open distributor market?? At that point they may or may not choose to support your ancillary lines, give them a direct purchase option that gives them a few more points of profit and helps make annual committments, "essentials" mix programs, freight programs, etc.

If the goal is all lines standing autonomously, this could only help create loyalty to one price sheet.

This message was edited by 2nd rick on 04/29/05 14:23 ET.
Rick Murphy
Troy, MI
Post 5 made on Friday April 29, 2005 at 15:25
rlustig
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All of the Elan structured wiring systems are now rebadged open house pieces as of a few months ago.
OP | Post 6 made on Friday April 29, 2005 at 15:46
juliejacobson
CE Pro Magazine
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Thanks 2nd and RLustig. Good stuff. I've inquired if they'll have some deal where Panamax products will extend warranty on Nortek brands. Will post when I learn something.
"CEPro: your website sucks!" - Fins
www.cepro.com
[Link: twitter.com]
Post 7 made on Monday May 2, 2005 at 00:25
AHEM
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I've very mixed opinions on corporate takeovers and buyouts. Every few years we seem to go through a phase where one company becomes a huge buyer of other companies...think of Jensen, Rockford Fosgate, Harman, Klipsch and Directed Electronics.

Can anyone honestly think of ONE situation of a small company being bought by a large corporation and the result was that the formerly small company's product actually got better?

The usual scenario occurs when Big Company buys Little Company is that Little Company's best people leave and the products become homogenized.
Post 8 made on Monday May 2, 2005 at 03:31
hifiguru
Long Time Member
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I would be shocked if they DIDN'T roll out re-badged
models of the current Elan, Proficient, or 'Craft
speakers with the Xantech name in the next year
or so to fill in that lineup, especially considering
that they ultimately want the three lines to stand
on their own legs and not necessarily cross pollinate
the lines in the same dealers.

I realy enjoy working with most all of these lines. The problem I see in all of the re-badging is the loss of brand idenity and the resulting loss of loyalty and profit margins. In other word, if you can buy a Channel Plus system with 95% of the capability of an Elan S6 for 20% less why bother with Elan.
We are the people our parents warned us about
Post 9 made on Monday May 2, 2005 at 06:32
2nd rick
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On 05/02/05 03:31 ET, hifiguru said...
I realy enjoy working with most all of these lines....

This is the issue that I would like to see addressed, I think too many of us have dealt with these different lines for different categories in the past, and are now torn on which way to move forward.

Now that Speakercraft and Elan are each developing into full line vendors, the cross-selling should be minimized.
I don't think they should continue to cross-sell the newer accounts, because it only weakens the overall marketplace.

I think a dealer that focuses efforts on one or the other would be better off than a dealer who still splits P.O.s, has seperate invoicing, and not to mention missing the volume discounts and program dollars...

The only real advantage I can see is that having distinct credit lines at both might help weather the occasional cahshflow shortcomings when a single line could be too easily taxed.

The largest shortcoming to overselling the dealer base is that unscrupulous dealers will swipe "me too" quotes from committed dealers when everyone has evertything.

My opinion is that you sell what you sell, including yourself...
Just because the client saw the S6 or Gloria at an earlier presentation doesn't mean that you shoulkd abandon your plan to pitch an MZC system or whatever.
Don't cater to his enthusiasm over another presentation and follow through with presenting what you would have if he came to you first.

Sorry to go off on a tangent, but this issue makes me boil sometimes.

The problem I see in all of the re-badging is
the loss of brand idenity and the resulting loss
of loyalty and profit margins. In other word,
if you can buy a Channel Plus system with 95%
of the capability of an Elan S6 for 20% less why
bother with Elan.

I think they are committed to keeping the individual MZ systems for each brand at this point, although sharing manufacturing resources could make them ALL more profitable and price competitive. I could see sharing IR, speakers, and the few oddball Elan components that make it more competitive, like the ones I mentioned earlier)

I agree that it would be a HUGE mistake to offer the same MZ system from all lines, especially if any certain line (Channel Plus) will be geared more toward open distro.

They seem to be handling it pretty well so far...
Rick Murphy
Troy, MI


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