Unfortunate rumor -

[MrMcGoo]

IMHO it was a mistake to drop Tweeter and Magnolia. There will undoubtedly be some new outlets for the Reference line. What Klipsch has failed to comprehend is that it will take years for the new outlets to make up the lost volume. The new sales staffs will take time to train and take even longer to believe in Klipsch; it will take longer still to develop the new customer relationships. Established distribution channels have enormous economic value.

I hope that the Reference line does not bleed to death while this transition in distribution takes place. On the other hand, the addition of BB to sell the Synergy line may be a good move. However, BB may tarnish the Klipsch immage for the Referece and Heritage lines. Only time will tell.

I get the impression that Klipsch is having growing pains and that this is the latest symptom. I wonder how much market research went into this decision and how much excecutive guessing went into the decision.

[shoe11]

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On 2/15/2003 2:12:51 AM MrMcGoo wrote:

I get the impression that Klipsch is having growing pains and that this is the latest symptom. I wonder how much market research went into this decision and how much excecutive guessing went into the decision.

----------------

Clearly growing pains. If you read the other audio forums many audio enthusiasts label Klipsch as good, but not great. This has always pissed me off given the wonderful sounds that my current setup provides, but now I'm not so sure that those same people don't have a point. In the future I would love to see strong reviews for new Klipsch products in Stereophile, The Absolute Sound, etc that are truly "Reference" quality, but it seems to me that Klipsch is set on relegating their brand name to the weekly Best Buy circular.....pictured right next to the washing machines and refrigerators.

~shoe

[RangerSix]

I'm not sure what all the hallabaloo is about. Putting the Synergy line-up into Best Buy is not such a bad idea. While not top of the Klipsch line, the Synergies will allow Klipsch to get their foot into the door of a wider consumer market. Brand loyality is often sparked with the purchase of lower end stuff. Pioneer, Mitsubishi, and Yamaha, to name a few, have all sold their low-end stuff at Best Buy, but IMO it hasn't hurt their reputation as makers of quality products. However, what doesn't make sense to me is saying goodbye to specialty stores such as "Tweeters". Those stores were an alternative for individuals wanting something better. There is more to this story than what the press release is telling us.

For the audio snobs ... geez, it's just a set speakers! Get over it. My travels to Japan had taught me one very hard lesson: The mark of a great person is not based upon prestigious titles or esoteric names, but rather is measured through one's actions. That goes for speakers also. If you get wrapped around the axle over Klipsch catering to a low-end store, then that insecure behavior says more about the person, than it does the speaker.

Anyway, something to think about.

[Bruinsrme]

Russ,

I will be intersting to see. This is an unfortunate decision from a convenience point of view. In Massachusetts there are a number of smaller electronics shops in Boston. But what I found was they look at every sale as a one time big purchase where Tweeter, over the past 3 years, changed there approach to let's start here today and build at the customers speed.

There is another store local to me called Percy's. They too carry Klipsch and I have been in their show room a few times, looking at range/stove/microwave combos. Percy's does have two very nice sound rooms but rarely do they direct people into them. This demo room has one set of speakers one receiver, one dvd player and one sub woofer poor selection. the other one is strictly by appointment only.

I love my Klipsch and will most likely purchase a pair of RF7's next week before Tweeter's stock is gone. Perhaps the next time I need speakers I can step over to the carpeted area and check out the Klipsch speakers.

I hope my ignorance in this business decision is is just that, ignorance. But if it wasn't for Tweeter I would have Bose or Cambridge Sound in my HT.

Let's hope I am wrong,

Scott

[kjohnsonhp]

There seems to be two key points here:

1. The segmentation of Klipsch into their VOLUME products and channels (ie Synergy/ProMedia & Best BUY) and their VALUE products and channels (ie REFERENCE and AV Specialty stores).

2. The gap in channel coverage in the Northeast from the split with Tweeter.

On topic one I think Klipsch is doing the correct thing. They have been heading down that path and this should help them drive programs better for each segment. With such strong segmentation I wonder if we will see the Synergy line begin to increase in performance and overlap with the Reference line while the Reference line may feel more pressure to have a low price point and overlap with Synergy.

On Tweeter there is probably more to the story and future news to help fill the coverage gap.

In Dallas/FW there are Tweeter and Ultimate stores next to each other in many towns. The growth and overlap of these regional chains seems to have caused a problem.

[Bruinsrme]

In the Northeast there are numerous marketing issues that are hurting companies such as Pioneer, klipsch, sony, and other major players including Tweeter. The key element impacting retail sales is the Internet and its grey market selling channels. Walk in to Tweeter and look at the price tag and think for 30% less i can order it over the internet and have it delivered.

I am guilty of supporting such purchasing. I was not able to justify $3800 for the Pioneer 49TXi but I could swallow the $2800 for the same unit with some risk invovled.

The Klispch name is getting raked over the coals in the grey market and perhaps this is one way to break such a market and reestablish their distribution channels for their flagship products.

I just retruned from Best Buy. In all of their HT area there wasn't an associate to be found. 11 customers turning knobs and looking at price tags and not a sole to help them. This is the kind of customer service the synergy product line will be receiving.

I will be selling my my RF3II and moving into the RF7s as soon as I talk to my salesman at Tweeter on Monday. Of course if the price is right.

Scott

[BBB]

Hey Scott. All you had to do is whisper extended warranty in one of the BB isles and you would have had a dozen 18 year olds swarming around you like flies on a buffalo chip.

[Bruinsrme]

yes that is very true.

I did notice a rather newly made respective blank wall space filled in with overstock in the same area as the Bose and Sony speakers. Maybe they are planning for a new product.

Having a 13 year old in the house I frequent BB at least once a week. Most of the speakers I see leaving there are HT in a box. I seriously hope this is the right move for Klipsch and that their name will not be confused with second rate products and poor customer service.

I can't wait for my RF7's

Would you like to upsize that extended warranty?

[freemark]

I work for tweeter. I must admit that I was disappointed in Klipsch's decision. Here at our store we have always given Klipsch a great deal of support. I have been in this business for 15 years and I can say without a doubt that Klipsch has made a huge mistake. I sold JBL when they were good. I sold Polk when thay were good. While I don't know what their financial picture is like. There is no doubt that Polk and JBL suck compared to how they used to be. In the long term Klipsch is only hurting themselves.

As for some of the other comments in this group.

1- the internet sale of Klipsch will only increase. Tweeter/ SA never sold speakers gray market on the internet. All the speakers found on the internet came from the small dealers out there. If you quadruple the # of small dealers you have just quadrupled the number of potential gray market dealers.

2- Klipsch was a miidle of the line speaker for Tweeter. It is definately not "too high line" for Tweeter. Klipsch will be a high line for BB. And will most likely be a high line for any dealers they pick up. Anyone who has taken Marketing 101 can tell you that the most advantageous position to be in for sales numbers is the middle. While Klipsch was a "bread and butter" speaker for us it will be a nice occasional sale for BB and most other dealers. Klipsch will do what JBL, Polk, and Advent did when they tried to go mass market; they will lower prices and quality to try to increase sales since no one at BB will be able to explain or demonstrate the reason for their higher prices. In the end Klipsch will be a "used to be good" speaker.

My bet is that Klipsch will regret this change. While some other speaker company is salivating at the chance to be sold at a very well regarded mid-fi company with a well trained sales force.

ps. Wal-mart will be next in line to be a Klipsch dealer

[Invidiosulus]

I don't see the synergy line as being the "high end line" of speakers in BB

While they may be the nicest in the store I don't see them as costing that much more than the JBL fake studio series.

I also don't consider current JBL products to suck overall, The stuff in best buy sure isn't the top of the line that JBL has to offer.

JBL still makes excellent products in the prosound area and of course they still sell(in japan) the 4312 and the like.

Peace, Josh

[BBB]

Ah, Father... You are so wrong. Let me explain...

Life, which you so nobly serve, comes from destruction, disorder and chaos. Now take this empty glass. Here it is... peaceful... serene...boring but if it isdestroyed!

...Look at all these little things... so busy now. Notice how each one of them is useful. What a lovely ballet ensues, so full of form and color.

Now think about all those people that created them. Technicians, engineers, hundreds of people who will be able to feed their children tonight so those children can grow up big and strong and have little teeny weenie children of there own and so on and so forth. Thus adding to the great chain..of life.

You see father, by creating a little destruction, Im in fact encouraging life .In reality you and I are in the same business.

Cheers.

[dougdrake]

The phrase "tempest in a teapot" comes to mind. All this will settle out, and we, as Klipsch owners, will continue on our merry way, with little to no name recognition from the masses and disrespect from the audiophiles. Nothing changes. I still love my "extended Heritage" speakers and will continue to buy them.

In my own case, while the Reference series are great and all, I never foresee owning anything but Heritage. In fact, I was disappointed to think that if there is a clearance at Tweeter/SA, I won't benefit from it 'cause there's nothing I want to buy. Too bad they weren't carrying the Aragon line...

DD

[erdric]

>>I still love my "extended Heritage" speakers and will continue to buy them.<<

So, is this the unofficial name of the Chorus/Forte/Quartet line? I've always wondered how to classify my Forte II's. I feel the same way about future Klipsch purchases. If anything ever happens to my Forte II's then I'll just Ebay another pair. Try as I might, I don't care for the Reference line. My RS-3's do a good job, though.

>>In my own case, while the Reference series are great and all, I never foresee owning anything but Heritage. In fact, I was disappointed to think that if there is a clearance at Tweeter/SA, I won't benefit from it 'cause there's nothing I want to buy.<<

Ditto. I may pick up some of the architectural series if they get rid of them for a good price. I've toyed around with using ceiling installed speakers for the rear center channels because I don't have room for anything else.

[Audible Nectar]

>>I still love my "extended Heritage" speakers and will continue to buy them.<<

"So, is this the unofficial name of the Chorus/Forte/Quartet line? I've always wondered how to classify my Forte II's. I feel the same way about future Klipsch purchases. If anything ever happens to my Forte II's then I'll just Ebay another pair."

Yeah, I call 'em "The Heritage Brothers". Looks like a Heritage, sounds like a Heritage, it must be a Heritage (although, not technically a Heritage). And yes, I'll keep buying them, too.

[Guest Joshua Ryan Hall]

Doug:

Your are correct. It is not folklore. Current Chairman and Owner Fred Klipsch read the article about our late founder Paul W. Klipsch in American Way In-Flight Magazine and carried it around in his briefcase for years before calling and talking with his distant cousin, whom he had never met.

A few years later, Fred Klipsch and Judy Klipsch bought the company from Paul Klipsch and Valerie Klipsch.

Sometimes the real story is more interesting than anything I could make up.

--Joshua

[Guest Joshua Ryan Hall]

Doug:

I promise I am reading every post and not JUST responding to yours. You happened to have touched on topics that I could respond to with authority.

"It'll be interesting to see how this plays out. The thinking may be that just as the ProMedia brought a lot of people to the Home Audio line that never would have known about it, maybe the Synergy series in Best Buy will bring a lot of people to the Reference series as they upgrade, or wonder 'What else does Klipsch have to offer?'"

"...it DOES give the masses the ability to hear both Bose and Klipsch in close proximity to each other."

WOW! You hit the nail on the head. While, specialty audio distribution is Klipsch's CORE BUSINESS and it will continue to be, the presence of the brand in broader distribution drives NEW customers to the A/V specialists that carry the Reference Series. This was proven with the ProMedia multimedia speaker line.

As stated elsewhere in this string, Klipsch will establish new relationships with A/V specialists in areas where Reference is not represented because of the discontinued relationship with Tweeter (and Magnolia Hi-Fi). Though some posts are confusing the issue and thinking that we have replaced Tweeter with Best Buy, that is NOT the case. The two distribution channels are separate.

Regardless of the negative comments on this string about Best Buy, Klipsch believes they are, in fact, and excellent retailer that meets and exceeds the A/V needs of many, many customers through their 563 stores nationwide. The retail environment at Best Buy is different than the retail environment at our A/V specialist partners across the U.S., just as Reference and Synergy products are different. Klipsch believes both product lines are well suited to the unique selling environments in which they will continue to be available.

Also, I agree that allowing a broader base of consumers to discover the Klipsch sound experience in direct comparison to other brands, will win even more families to Klipsch ownership and introduce them to dynamic, detailed, powerful home theater performance.

--Joshua

[justin_tx_16]

Well, I have a question though. When I want to get new Klipsch speakers, and say I am still in Houston, how will I acheive this?

Wait wait... oh that's right, there are TONS of klipsch dealers in houston hehe Never realized that till I went to the dealer locator, WOW!

I still think Tweeter should still keep the heritage and reference stuff, why raise the exposure in the "lower level" and decrease it in the higher end shops? Ohwell, I will leave this up to you guys

[Colin]

I am sure that this was a tough decision for Klipsch that was resolved by a MBA type with two spreadsheets, side by side.

On one, deal with the largest and most popular chain electronics store in the country and go up against Bose, but with the lower price line only. On the other, deal with a powerful A/V chain that treats both lines like second class citizens. Classic MBA problem: sell more units at a lower price and tighter gross margins, or sell less units at a higher price and larger gross margins. (The classic answer is that the firm with the higher margin PERCENTAGE wins.)

For me, the sad fact is that high-end music salons do not have flea-powered tube with Klipsch big old horns solutions on display (at least not in Minnesota, New Hampshire, Massachusetts or Florida that I know of, in the last two decades). So now people who didnt experience the Reference series, which is much better than the Synergy, will not get the chance to hear them at all.

Some thoughts:

- If Sound Advice wont carry Klipsch anymore, maybe I can score another close-out subwoofer.

- Better go compare Mission loudspeakers to Klipsch while they still have them.

- Cant wait to get Klipsch into Best Buys wonderful demo room (love punching the button to listen to 5 different loudspeakers), so I can compare Klipsch to the others there.

- Without the high-powered salesmen to diss them, maybe the public will buy more Klipsch on their own.

[converge]

FWIW, i bought the ProMedia 2.1 at Best Buy last year. when it came time this year to upgrade my HT, the first thing i did was listen to the Klipsch Reference line. i was immediately sold on the RB5's.

[Bruinsrme]

I happened to be in a store in the Massachusetts, believe it or not it wasn't tweeter, and the salesman stated they too were dropping the Klipsch line as they were told KLIPSCH was moving the Reference line to on line sales.

Let me say that this is in line with Klipsch trying to prevent their gray market dominance.

Can anyone confirm nor deny what I heard?

Thank you,

My RF 7s should be hear monday. glad I had the opportunity to listen to them. Looks like I wont be able to do that in the near future..

Let's see

New RF3 family end of April but where will they be sold?

Synergy Best Buy May.......