NAD and PSB to go factory direct

Danny Tse

Lenbrook America is the parent company to NAD, PSB and Tivoli Audio. Looks like Lenbrook will drop almost all of its independent dealers because of this move....

Lenbrook goes factory direct

coolsax

Wow that's pretty crazy... my main local dealer has most of his demos on NAD gear and carries the entire PSB line.. hmm wonder what they'll end up switching to.

B Run

coolsax wrote: »

Wow that's pretty crazy... my main local dealer has most of his demos on NAD gear and carries the entire PSB line.. hmm wonder what they'll end up switching to.

Hey man where do you go here in Austin? I've looked up a few places but haven't been anywhere yet.

Monster Jam

Frankly, I am surprised more manufacturers haven't made this move. Without looking at the books, I bet Emo and Outlaw is killing them.

I recommended a few months back when B&K put the brakes on operations that they should have considered internet direct. Parasound is internet direct, even if they say they aren't (i.e. Audio Advisor and Audio Advisor through Amazon).

EDUBAG

I would expect a price decrease in both brands, you know cutting the middle man. the end consumers will benefit from this but at the price of a lot of the mom and pops store or brick and mortars.

the fact that other companies are selling direct are forcing this move, is either this or out of business.

with internet being so effective i am surprised that the old authorized dealer/network model is still so active for this type of equipment. however, they will have to implement a 30 day money back kind of thing since audio gear is so much more susceptible to personal taste than any other electronic.

we will see!!!

Monster Jam

There is STILL a market for authorized distributors - particularly when the job calls for more than connecting an amp to a receiver and the customer isn't motivated to put in the tough work a contractor can do.

carwashguy

This is always a good thing for consumers.

punk-roc

until you want to hear it in person before you buy..

dorokusai

Monster Jam wrote: »

Frankly, I am surprised more manufacturers haven't made this move. Without looking at the books, I bet Emo and Outlaw is killing them.

I recommended a few months back when B&K put the brakes on operations that they should have considered internet direct. Parasound is internet direct, even if they say they aren't (i.e. Audio Advisor and Audio Advisor through Amazon).

They have and will eventually but I doubt Emotiva or Outlaw is killing them, as much as times change and you need to keep up. NAD and the PSB lower end have been direct for many years.

When Thiel started being sold by Audio Advisor....the hi-fi market was clearly feeling the financial clamp but it's smart. Polk Direct is thriving even with an almost complete shutdown of the retail side of things from the B&M side. Otherwise, who knows what could have happened.

FTGV

punk-roc wrote: »

until you want to hear it in person before you buy..

True,but unfortunately B&M shops are becoming few and far between because they can't compete with online sales.Having worked for both a NAD and PSB dealerships in the past I can attest to their excellent dealer support.Lenbrook is operated by some very sharp people so they must feel strongly that selling direct is their only option.

shack

You all are missing the point. As I read the article, they are not going factory direct to the conusmer. They are not dropping dealers/retailers. They are going factory direct to the retailer...skipping the independent sales reps. Often these independent reps will support more that just one mfg. but have smaller territories. It appears Lenbrook has decided they will have a smaller sales staff...that they employ...who will cover much larger areas. Now the dealers may not get the support they need due to fewer reps out in the field and may decide to drop the Lenbrook lines...but they should still be able to get the product.

FTGV

Yes you are indeed correct it's some of the repping firms that are being eliminated.

dorokusai

shack wrote: »

You all are missing the point. As I read the article, they are not going factory direct to the conusmer. They are not dropping dealers/retailers. They are going factory direct to the retailer...skipping the independent sales reps. Often these independent reps will support more that just one mfg. but have smaller territories. It appears Lenbrook has decided they will have a smaller sales staff...that they employ...who will cover much larger areas. Now the dealers may not get the support they need due to fewer reps out in the field and may decide to drop the Lenbrook lines...but they should still be able to get the product.

You should explain that to the local dealers in this area. Should I sign you up for a symposium? The article is what it is but I didn't miss anything personally.

shack

dorokusai wrote:

You should explain that to the local dealers in this area. Should I sign you up for a symposium?

You can't afford my services....

mantis

Wel trained Rep's are priceless. They take the time to visit your shop, tell you what's going on , help you with spec's , teach younger guys the ropes , the service goes on and on.

I think this is a bad thing. More people out of work , less people in the business , less personal time.

The world is just broken.

Gulfstrings

shack has correctly taken the meaning from the article that Lenbrook is replacing independent manufacturers reps with their own direct sales staff.

I think this is a good thing because direct sales staff is actually employed by the Company (Lenbrook) and will function under whatever type of management system is in place. Undoubtably, sales quotas and service quality will top the objectives list.

Manufacturer's reps may sell everything from electronic components to baby diapers. Their "equity" in any business is their relationships with the purchasing entity, your electronics store, for example ... or Wal*Mart, not necessarily the supplier company.

I've had both direct sales staff and mfg rep groups selling my products. I always had management control over my sales employees. Mfg reps, as independent business folks, are only as loyal as their income from selling your product dictates. Their focus may be somewhere else. They may even drop your line if a better offer becomes available. All's fair.

It's possible Lenbrook's lines - and the customer accounts they will sell directly to, will benefit greatly from this new relationship. Mfg reps make lots of money.

It's also possible, that Lenbrook's "move" may be due to decreased sales/profits. Cost savings should be realized by consolidating their own sales managment staff while eliminating mfg rep commissions.

Let's hope Lenbrook survives this economy. It's possible these changes may be a somewhat desperate effort to do so and a reflection of the state of their business.

dorokusai

shack wrote: »

You can't afford my services....

100% true and no article neccesary.