Can Polk Audio survive?

treitz3

With the economic downturn causing previously sustainable businesses to collapse and the consumer holding onto seemingly every penny they have, can Polk Audio survive the economic downturn?

I'd like to hear your thoughts as to whether or not Polk Audio has a strong enough presence to be a sustainable entity to make it through these tough times. We all know that Tweeter is closing and that will have a certain percentage of lost sales for Polk Audio. I read a post I]that admittedly I do not know whether or not it is true[/I on this forum that Fry's will be phasing out Polk as well. We all also know about the possible fate of Circuit City as well, filing for bankruptcy protection. This will only further the hurt of Polk Audio sales if they do in fact fold and I'm wondering how this will effect the overall sales and sustainability of the Polk Corporation.

As a longtime fan of Polk Audio and current owner of their products, member of this forum and a fellow audio freak, I am concerned for Polk Audio. I am praying for the best possible outcome for all. I'm also wondering about how this economy will effect the dichotomy of this hobby as well....but I'll save that for another thread.

If you feel that Polk may be one of the companies hit and hit hard by the economy, B]hypothetically speaking[/B what would you do if you were the CEO of Polk to make the company survive during these times?

Frank840

if I were a Ceo or somewhere in that comand. I would be out on the Corner Selling the product. Really nothing else you can do.. everyone is taking a hit.

leroyjr1

I think every speaker company is feeling the effects of the economy. I think Polk will survive.

mrbigbluelight

Everything's an opportunity.

CC is going down, but Best Buy in the not-to-distant past started making Polk a presence in their brick and mortars.
American offers Polk, also.

Ultimate Electronics, I don't know.
But the key is, I believe, with CC out of the picture, efforts can be focused on the other outlets, efforts that were, IMO, wasted at Circuit City.

dorokusai

Can Polk Audio survive?

Yes.

SolidSqual

Some businesses might be taking a hit, but those who haven't paid for their inventory or product with credit are living the high life. With demand down for materials, so is cost in many ways. Just my two cents based on experience working in my family construction business. The Good Will for our company's reputation (garnered with years of hard work) keeps us busy with work.

Interestingly, the construction industry was one of the hardest hit in the recent downturn and yet we're still turning a healthy profit while some of the competition is tanking. Why? Because we didn't spend what we didn't have.

Polk will be fine if they have their **** in order (they certainly have the good will). Things are bad. But it's not 1929

exalted512

I dont think DEI has experience growth in the last 5 years...
-Cody

bigaudiofanatic

YES they can

McLoki

If you are concerned - I suggest purchasing some speakers in the near future. It will make both you and Polk feel better.

Either way, they have been through worse than this - I am sure they will be fine..

Michael

disneyjoe7

Polk will be fine Tom don't get your panties in a twist.

Fatbrando

As long as one SDA owner makes the sacrifice of selling me his Speakers and goes and buys NEW speakers directly from Polk, I think they'll make it....


FB

dorokusai

exalted512 wrote: »

I dont think DEI has experience growth in the last 5 years...
-Cody

They bought Polk....how is that not growth?

exalted512

Growth, as in $/share.
-Cody

George Grand

Did Gloria Gaynor make it?

dorokusai

exalted512 wrote: »

Growth, as in $/share.
-Cody

Do you think that's specific to DEI stock?

exalted512

dorokusai wrote: »

Do you think that's specific to DEI stock?

Well, the competitors that Scottrade lists, which all have a bigger market cap, have ALL experienced growth at least once in the last 5 years. DEI is also has had the biggest loss YTD.

So to answer your question, every one of their competitors has a loss YTD, but DEI is the only one consistently losing, and losing more.
-Cody

sucks2beme

My guess is one of the following:
A: a speaker re-design and a push for higher end Polk back in the
smaller shops.

B: A deal with BB to put the high end stuff in the Magnolia showrooms.

C: Dropping the high end market like some others have done to focus
on high volume retail in the big box stores.

A push for more on line direct sales.

The loss of CC and Tweeter has to hurt the bottom line. Somewhere
there's a bunch of execs planning something. No company can sit tight
while sales outlets are closing up. Every dollar counts. I hope for option
A: myself.

Early B.

Matt must have saw the writing on the wall when he sold a couple years back. It's a good time to retire.

BTW -- Polk has tremendous name recognition. They'll be around for a while.

mantis

Early B. wrote: »

Matt must have saw the writing on the wall when he sold a couple years back. It's a good time to retire.

BTW -- Polk has tremendous name recognition. They'll be around for a while.

Thats the exact problem right now. 2 many writings on 2 many walls. Remember Polk Paul left to go with Def tech as well. This was not a good sign for me as well as Matt himslf getting out. Maybe it was just time for a change. I realize I don't do well with change lately but if polk went under.... man I don't even want to finish that.

McLoki

Isn't Def Tech under the same corporate umbrella? I would not exactly consider that abandoning ship. Also, I am pretty sure there were pics of Matt at Polkfest. I would guess he was able to get back to what he loved (building speakers) rather than running a really large company (and the money probably wasn't bad either. )

I am pretty sure you will be able to rock on for quite awhile, for now here is my advice:
1) Pick up head.
2) insert into hole between shoulders.
3) stop running.

Michael

NotaSuv

Polk has some of the best customer service I have ever experinced, along with good quality products, and a good repeat customer base....yeah times are tough but in the end I think Polk will survive and grow as the economy rebounds.

reeltrouble1

dorokusai wrote: »

Can Polk Audio survive?

Yes.

exactly.

Tom, sorry you missed the Fest, heard you have been very busy. Anyway, when you see the folks at HQ you can get your finger on it, the feel, POLK is the strongest part of DEI. This is a company with staff who really pull together, the whole place is energized with people allowed to let there thoughts and work habits cut loose. Although if Matt bought it back sure would not bother me any. Now if Matt ever leaves that could be a problem and then there is Jim Herd, wow, what a team along with the Al's and Suskind.

Matt Polk is an exceptional person.

RT1

danger boy

Polk Audio is diversified enough to survive this down turn in the economy.. so yes they will survive and be fine.

ND13

Gloom, Despair, & Agony on me...
Deep, Dark Depression
Excessive Misery:rolleyes:

They made it thru Carter.

DollarDave

ND13 wrote: »

They made it thru Carter.

++

Man, I remember those times. We are nowhere close to that.

Polk will be fine. Bose? Well, we can only hope.

ND13

Yeah, we'll talk when interest rates are 13+% for homes and 21+% for autos....that's for perfect credit.

HB27

I feel the companies marketing a good quality product and good service in hard times will survive.
The disposable products won't be purchased as much as buyers will concentrate on products that will last longer and give excellent service. I'm sure survival will depend on everyone from top to bottom in any company pulling together to keep strong or at least survive.

shack

Will Polk survive?...IMO yes. Ted had it right when he talked about the energy and focus of the people that make up Polk. It is that intangible that gives them the edge in tough markets. Will DEI survive?....harder to say. They are in big the auto "accessory" market and even aftermarket auto is affected by the new car sales, so it is hard to say what their future holds. Their HT and speaker markets are luxury items that are really susceptible to a bad economy since they are totally discretionary purchases. IF...DEI doesn't make it...and that is not any kind of prediction...I would anticipate the Polk and DefTech would be sold off intact (probably back to the original owners at a fraction of what DEI paid for it). Polk will survive without Tweeter and Circuit City...although it is not a given that CC is going away. They may be able to restructure and come out ok...just much smaller.

cfrizz

I believe that they will survive. They are diversified enough. They just have to find another store for their RTI's & LSI's. I say put them in BB Magnolia stores.

If they can get the so called hi end stores to get their noses out of the air, put them in those stores as well.

Do more direct selling on the web. Outlaw, SVS, Emotiva etc. have all been doing ok without the middle man.

Yes it is better to go to a store to actually listen to speakers, but at the rate it's going there aren't going to be any stores to go listen to them in!

megasat16

Guys, Why speculate? Look at the current situation.

I am sure Polk will survive as long as they sell their Brand Spanking New speakers on eBay (as Refurb or B stock or Remanufacture) with less than half of the retails and ppl are buying them. And the main question is how much Polk spent to manufacture their products. As long as it carries some margins or balance out in this tough time, it'll come out OK on the other end.

Hope we all are too to see the end of it.

treitz3

Still feel the same way? *prays*