life without audio dealers

As someone who has taken on the role of distributor for a high-end audio company, this argument is of particular interest to me...

I have the complete freedom to steer the brand here as I see fit, which translates to being able embrace either a direct sales or traditional brick and mortar business model. I found there are arguments for and against each one.

If I sold direct, I could offer a 35% - 50% reduction in pricing, as well as having my hands on each and every sale directly. The latter yielding the type of relationship I would hope the customer would find value in. If I went down that road, to take the place of the audition at the dealer or his recommendation, I would also offer a trial period in the range of something like 60 - 90 days, as I agree with the sentiment that only via having a component in one's own system can the best decision for the individual be made. I want to be clear in my desire to provide the ability to audition a component either way - through direct sales or a dealer network.

However, I have seen very few companies become sucessful along the lines of direct sales, among them are Prima Luna and Zu. I have also watched as companies like Coincident, Jadis, and Von Schweikert more or less come apart at the seams when they have (willingly or unwillingly) gone down the direct sales road.

I have the utmost confidence in the sonics, build quality, and value for money the product line I represent possesses, and feel that allowing people to able to see, hear, and touch it will result in brand acceptance and sales. But, in my opinion, I feel building the dealer network is the best way to accomplish that. While that opinion certainly diverges from the majority opinion in this thread, after thinking it over long and hard, I made the decision, rightly or wrongly, that it is the more prudent one.

Apart from all of this, I work a high level full-time job in an extremely stable company, and am hesitant to walk away from the money and benefits it allows my family to enjoy. OK that may sound like a cowardly reason, but I have to be honest. On the other hand, I feel it has yielded the unforeseen benefit of being able to take the long view of things, and act along those lines to build the brand up the way I feel is the best and most ethical manner, as opposed to most in this industry who have to unceasingly generate sales at whatever expense in order to put bread on the table.

In the end, my sincere desire is to provide the best possible service to people interested in our product, and I am really open to embracing whatever the best vehicle to provide that is. Right or wrong, I have chosen the brick and mortar avenue, but am always here to listen as to why folks believe I made the wrong decision.

I think the first point Onhwy61 puts forth is the best of this very new year; one that will possibly not be outdone in the next 365 days.

This is only my opinion, but there are more than enough small manufacturers in this hobby. The number of companies offering tube amplifiers or loudspeakers is incredible.

I believe we need more BIG companies embracing our hobby, which they seem to do less and less over time. Put aside whatever political arguments that folks get into about it around here, perhaps the last time was the effort Sony and Philips (Marantz coming from their effort) put behind SACD.

Most of us here on Audiogon are using amplifier designs from the 1930s - 1960s and loudspeaker designs from the 1950s - 1980s. Reflecting upon that, one will notice the likes of AT&T, Altec, RCA, Matsushita, Sony, etc. were the driving forces behind them. It's hard to imagine the LP, CD, FM, tube or solid state amplifier without big companies behind them. Yes, a lot of breakthroughs came out of places like Quad, AR, and Klipsch, but it can be also inferred that without the bigger companies leading the way, the work of the smaller ones may not have been able to come to light either.

Not much has progressed from these technologies, and without companies who have the resources to dedicate scientific and engineering personnel and hundreds of thousands or even millions of dollars into a project, I predict that not much will. While I certainly feel that happiness can be found in the components on the market today, I don't think anyone would disagree with me when I say that even the best doesn't come close to real, live sound.