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Unfortunate rumor -


Bulldawg

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this somehow found its way to the customer service section of the promedia.

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On 2/13/2003 6:59:57 PM PROTAN4 wrote:

TO MR.FRED KLIPSCH

My name is Rob Braley, i just wanted to say that i think you are taking your company down the wrong road.i have been selling your speakers for close 10 years,and now you are selling out.by you selling to best buy the legacy that your father started will be lost. no $10 a hour kid will ever care about your company, and soon you will be forgotten like polk and advent.if your dad was still alive this wouldn't of happen.

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as much as I'd like to check out klipsch speakers at my local bestbuy, I don't like where this is going and what this could do to their reputation, and further down the road; their products... (when I can possibly afford them15.gif ) I fear what this marketing will do to the klipsch forum within 3-5 years... have u all been to the promedia section recently?

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On 2/13/2003 11:25:13 PM GooseChaser wrote:

this somehow found its way to the customer service section of the promedia.

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On 2/13/2003 6:59:57 PM PROTAN4 wrote:

TO MR.FRED KLIPSCH

My name is Rob Braley, i just wanted to say that i think you are taking your company down the wrong road.i have been selling your speakers for close 10 years,and now you are selling out.by you selling to best buy the legacy that your father started will be lost. no $10 a hour kid will ever care about your company, and soon you will be forgotten like polk and advent.if your dad was still alive this wouldn't of happen.

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as much as I'd like to check out klipsch speakers at my local bestbuy, I don't like where this is going and what this could do to their reputation, and further down the road; their products... (when I can possibly afford them
15.gif
) I fear what this marketing will do to the klipsch forum within 3-5 years... have u all been to the promedia section recently?

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"as much as I'd like to check out klipsch speakers at my local bestbuy" - with the 50 other systems playing at the same time? No way in HELL you could audition speakers seriously at Best Buy. You could at Circuit City, they have listening rooms and such, so they are OK. Best Buy is the place that makes you stant 2 feet away from a 60" TV to look at it, can't really "test" it out.

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Some info taken from articles in Twice-This Week in Consumer Electronics.

Canton, Mass -2/3/2003-Tweeter Home Entertainment Group said it grew its flat panel sales to 11.6 percent of revenue in the companys fiscal first quarter, but the retailers business as a whole took it on the chin. As a percentage of revenue, operating income in the first quarter decreased to 3.6 percent, from 9.1 percent year over year. This was due to a 340 basis point increase in selling expenses as well as a 160 basis point decline in gross margin, to 34.9 percent. The large increase in selling expenses, as a percent of revenue was primarily attributable to missing its sales plan by almost $37 million, said Tweeter.

Richmond, Va.-2/10/2003 In a dramatic effort to reduce costs, Circuit City has moved its sales force from a commissioned to an hourly pay structure, will pink-slip about 4,100 employees (3,900 being commissioned salespeople) and will shut 10 more product repair centers. In an unusual move that underscored the shift in corporate culture, the chain delayed the openings of its 626 stores on Feb. 5, the day of the announcement, in order to inform its workforce of the changes. The chain will also add a third sales manager to about 400 stores, ostensibly to support the audio and video departments, but will dismiss 200 repair center workers as it closes an additional 10 service centers. Circuit City has already cut the number of repair centers from 37 to 17 over the past four years, as falling prices and enhanced features have made consumers more inclined to replace broken products rather than fix them. Its a major blunder,' said Warren Mann, executive director of the MARTA Cooperative of America buying group and a former Circuit City supplier while on the manufacturing side of the business. 'Theyve gone to the dark side of retail, with a clerk floor like Kmart. You cant make money selling better goods in a self-sale environment. Mann sees the layoffs as an opportunity for service-oriented dealers to pick up good sales people. Theyre hard to find and keep, and Circuit City is just throwing them away, like they did with appliances.

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I am so glad that Tweeter lost their Klipsch rights. Around here, they are HORRIBLE!! I am fortunate enough to have a local dealer 2 miles away from Tweeter that carries Klipsch that is top notch. Also, about 50 miles away there is another that is pretty good. The Best Buy thing scares me a little bit(actually, a lot). First of all, they sell Bose. Secondly, it is impossible to audition any equipment in a 20' high warehouse with about 1000 other noise sources going off in the same area. I hope that Klipsch made the deal including that Best Buy build an audition room in each store that Klipsch is sold. At least it is only the Synergy Series.

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With Tweeter out, NEW dealers will step in line to fill the huge gap that will be created. From the wires it appears Tweeter will still be servicing its customers, so don't cancel those orders yet. Unless you want to wait till the fire sale starts. With Best Buy only getting "synergy only" no archetecture or outdoor lines! The Refrence product will never darken a Best Buy store. Especially since the two lines will be enginered by two seperate staffs. Hopefully, that will create more higher end prouduct.

From what I have seen @ CES (the new stuff)will rock!! Klipsch knows what it has, the exclusiveness of the line will always remain.

2.gif

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Goosechaser,

The South Florida Klipsch retailer is Sound Advice...but if you want to see Klipsch speakers you better hurry...I understand that Tweeter and Sound Advice are the same company or owned by the same company. Of course, as someone else already mentioned, there will probably be a Klipsch Clearance sale in the near future.

Dave

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Around here, there are two "high-end" audio shops and a Best Buy and a Circuit City.

The "high-end" shop that has been the Klipsch dealer for an ungodly time is Stereo One. But they got heavily into the 12 volt thing a number of years back...also getting into the "built-in" H/T scene a few years back. The owner told me recently that he intends to drop his 12-volt stuff, remodel his store, and get strictly into the high-end market again...with built-in H/T being his other thing. He also told me that he wants to, and is intending to carry the top of the line Klipsch products in his store, but currently has no binding contract to do so....and is awaiting word from Klipsch on the matter. Meanwhile...

Best Buy is carrying the promedia stuff, and the other "high-end" audio store, Law's Electronics, is currently carrying the Klipsch line...with RF-7's and such being offered. But its amp line is primarily Sony...this just doesn't seem to "jive" well with my thinking of "high-end"!!

It appears that there will soon be a major battle between Law's Electronics and Stereo One for the Klipsch home speaker lines...at least the ones Klipsch currently offers at its "top of the line" realm! Neither of these two stores currently has any Heritage speakers...and I wonder if either of them INTEND to carry them!!

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Where is the idea of Circuit City as a distributor coming into play? (press relase listed below)

Local Tweeter salespeople I spoke with state that a strategy for sales of existing inventory has not been formulated; however, any purchases will continue to be covered by 60 day price protection policy (if the items did go on sale).

Klipsch Announces New Distribution Strategy and Retail Partner

Thursday February 13, 8:18 am ET

INDIANAPOLIS--(BUSINESS WIRE)--Feb. 13, 2003--Klipsch Audio Technologies announced today a bold new distribution strategy that includes ending relationships with two key dealers, part of which was announced on Tuesday, and adding a major new retail partner. According to company officials, the changes will bring order to the market, address escalating regional conflicts, and provide a consistent brand story across all channels of distribution.

As of Tuesday, Klipsch has discontinued its relationships with Magnolia Hi-Fi and the Tweeter Home Entertainment Group and its subsidiaries. Additionally, Klipsch will begin selling a limited line of its award-winning Synergy Series loudspeakers, excluding installed and outdoor models, at Best Buy stores across the country on Memorial Day weekend this May.

The Reference Series, Klipsch's flagship line of high-performance loudspeakers, will continue to be sold exclusively through audio/video specialists nationwide.

Fred Klipsch, chairman and owner of Klipsch Audio Technologies, said Ultimate Electronics and Good Guys immediately embraced the new strategy, and that Klipsch has named them "flagship" retailers along with remaining PRO Group members and many of Klipsch's top 25 independent specialists.

"The specialty retail landscape has undergone radical change due to aggressive retail acquisition and consolidation," said Klipsch. "We are moving forward with a strategic realignment that eliminates regional conflicts and creates order in our core business of specialty retail distribution with the Klipsch Reference Series. At the same time, we will broaden our market penetration and brand exposure through Best Buy with the Klipsch Synergy Series."

According to Paul Jacobs, chief operating officer of the Klipsch Worldwide Products Group, Klipsch has been selling its ProMedia® line of computer speakers through Best Buy for two years, and it has been successful as a brand strategy to increase demand for high-performance home theater systems. He expects the changes announced today will have an even greater positive impact on the Klipsch brand.

Jacobs explained that the Reference Series and the Synergy Series will be managed by separate product development and engineering teams. He said this two-line strategy would allow Klipsch to focus distinct products towards uniquely different retail selling environments, and that the internal separation would guarantee continued delineation between the product lines.

"The audio/video specialists who fully supported the Klipsch Reference Series experienced marked increases in sales," Jacobs said. "This distribution realignment builds on the success of that full line strategy and creates a consistent brand story in every market with our Reference Series.

"We are excited that the Synergy Series will be offered at Best Buy because they are an excellent retailer whose effective merchandising will communicate a consistent brand story."

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Also wanted to point out something that I'm sure you all knew already -- Fred Klipsch is not PWK's son. He is a somewhat distant relative who, to the best of my knowledge, knew nothing about the Klipsch product until he read an article about Klipsch in an airline flight magazine and wondered if he was related in any way. (This may be folklore, but it's what I heard.)

It's no secret that Fred and Paul were not the best of buddies. Heck, look who still owns the PWK logo -- his wife, not Klipsch LLC.

DD

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One major concern I'd have with the new distribution channel is matching up the Klipsch to the amps and receivers they carry at Circuit City and Best Buy. Pure ear bleed. (I can't comment on Tweeter's receiver selection as there are none in my area).

Mace

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>>Also wanted to point out something that I'm sure you all knew already -- Fred Klipsch is not PWK's son. He is a somewhat distant relative who, to the best of my knowledge, knew nothing about the Klipsch product until he read an article about Klipsch in an airline flight magazine and wondered if he was related in any way. (This may be folklore, but it's what I heard.)

It's no secret that Fred and Paul were not the best of buddies. Heck, look who still owns the PWK logo -- his wife, not Klipsch LLC.

DD<<

Actually, I didn't know this. Weird. How did a distant relation get control of the company, especially if PWK didn't get along with him?

I hadn't thought of the problems with auditioning the speakers at BB. Poor acoustics coupled with bright, low-end receivers ought to have Synergy speakers flying off the shelves. Brilliant move Klipsch LLC.

I'm going to scream the first time I hear a customer at BB say "Wow, these Bose sound so much better than those big Klipsch speakers. They must not be very good."

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IMHO, Klipsch should have sent Synergy to Best Buy and Circuit City but KEPT Tweeter to sell the reference and Heritage along with the Quintet System for those HTIB big screen TV buyers, you know what I am talking about right?

Well, put the Synergy stuff out there for the masses, but also make a deal with say Denon or Onkyo to join them in their new venture, though they are not THAT great. What they SHOULD do now is send the Synergy's there but require Best Buy to have an audition room (as stated above) and connect the speakers to a quality amp and dvd/cd source.

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These are the top of each line receivers offered by Best Buy on their site and are the only ones I have found on the shelves of my local BB. There may be others in different stores.

1)Kenwood VR-6070 -6 x 100W; THX Select certified; multiple 6.1, 5.1 and matrixed surround decoding modes; full digital bass management; multizone A/V operation.

2)KLH - R5100-100W x 5; Dolby Digital and Pro Logic decoding; 6 DSP modes; digital AM/FM tuner; 30 station presets; 2 digital audio inputs (1 optical, 1 coax).

3)Pioneer VSX-D811S-100W x 5; Dolby Digital and Pro Logic decoding; 6 DSP modes; digital AM/FM tuner; 30 station presets; 2 digital audio inputs(1 optical, 1 coax).

4)Sony-STR-DE-885/S-100 watts x 5; 32-bit Dolby Digital, DTS and Dolby Pro Logic II decoding; 32-bit DSP; Virtual Matrix 6.1 mode; Digital Cinema Sound.

5)Yamaha-HTR-5590-120W x 6; Dolby Digital/DTS (6.1/5.1), Pro Logic II, Neo:6; 45 DSP variations; low-impedance drive capability; 192kHz/24-bit DACs; 32-bit DSP.

All within a price range of $149.99 to $799.99

They stock more Sony receivers than any other brand.

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Simply dreadful. Sound Advice is the only dealer in my area that sells Klipsch, but I wonder if they'll hang onto them? They sell some brands Tweeter doesn't offer, Tweeter offers brands SA doesn't carry.

I'm also worried about the quality of Klipsch's product once they go big. Their current big market units are the Pro Medias, and well... no comment.

I'm just happy I'm getting my ref. system now and not later.

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