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Klipsch Makes Major Distribution Changes


Guest Joshua Ryan Hall

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Guest Joshua Ryan Hall

Dear Forum Members:

Wow! News DOES travel fast. First and foremost, I want each and every one of our Forum members to know that we did not intend to leave you out of the loop or be secretive about our brand strategy and distribution changes. As you can imagine, we had an obligation to notify our dealer partners immediately. The logistics of communicating a complex issue to over 1,000 dealers and their employees in 48 hours is a daunting task, and we were unable to get the information posted in the Forum until today.

As a few members have already communicated from having seen the official news release from Business Wire, Klipsch has discontinued its relationships with Magnolia Hi-Fi and the Tweeter Home Entertainment Group and its subsidiaries. We will work with both of these retailers on transition plans that will address issues you may have, such as parts and service needs.

Additionally, Klipsch will begin selling a limited line of award-winning Synergy Series loudspeakers at Best Buy stores across the country on Memorial Day weekend this May. This limited line excludes the Synergy in-wall, in-ceiling and outdoor models.

The Reference Series, Klipschs flagship line of high-performance loudspeakers, will continue to be sold exclusively through audio/video specialists nationwide. As you may already know, Klipsch introduced 14 new Reference Series models at the Consumer Electronics Show in Las Vegas this January, including 4 new bookshelf speakers that start at $299, and three new floorstanding speakers that start at $599. These new models along with any new Reference Series loudspeakers will remain exclusively available from the A/V specialists, and new A/V specialist partners will be added in areas where the Reference Series is under-represented due to the discontinued relationships.

The full press release is now posted in the NewsCenter. Bob G. and I, along with many others will be closely following the questions that come up regarding these major distribution changes, and we will do our best to address every one of your concerns.

--Joshua Ryan Hall

joshua.hall@klipsch.com

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It's about time.

I never want to see a Reference speaker in Best Buy or Circuit City. It is totally unbecoming for them.

You guys say you are the "value leader". It is important that you really believe this, because to a consumer like me -- YOU ARE the value leader. No one touches you. No one.

I recently bought a set of Cornwalls. They are nice, but they are not in the same class as the RF-7s. I will take a lot of heat for this position -- so be it.

Over the last two years, I have driven my RF-7's with several different circuit types: Solid State, Pentode, Triode, Ultralinear, and SET. The RF-7's always respond favorably.

I just finished building a set of crossovers using designer parts in an attempt to squeeze the last ounce of performance out of them.

I have made this offer to Bob before, and I'll offer it again. Pay me $65,000 a year, and within two years -- I'll have every high-end retailer in the midwest selling them.

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Joshua,

It would be helpful to know who the new retailers of the Reference line will be. I understand that it may be inappropriate to announce names immediately. I suggest that you give us a time table as to when you think that you will be able to announce your new distribution arrangements.

AS you probably now know, customers do not like uncertainty or a disruptions. Just as Klipsch is doing what it thinks is in its best interests, customers will do what they perceive to be in their own best interests. The two do not necessarily coincide.

I heartily endorse your efforts to add customers. However, it is usually a good idea to try to keep existing customers.

Bill

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Dean,

Had a pair of RF-7's. Sold them when I finished refurbishing my Cornwall's. For me the opposite was true. It wasn't even that close. The only thing the RF-7's did better was mask bad recordings and cd's. And like you, I've used SET, PP, SS, etc. to drive them both. If you have any weakspot in the signal path, the CW's let you know in a big way. That fact can get upsetting at times. So much of what is on cd and vinyl today is recorded or pressed very poorly and can be unlistenable with CW's. What tipped the scales for me was listening to uncompressed FM through both. I listen to NPR, KKJZ (very good jazz station) and a couple of good classical stations in my area on a variety of tuners (Accuphase T-101, Sansui 717, Sony 5000FW, Mac MR78). I also like the look of my CW's better.

Regards,

Chris

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Hee hee, how completely bizarre.

Well, the Cornwalls are my next project. They are a gorgeous set of speakers, and I have no intention of letting them go. I'm going to start by damping the metal lenses, replacing the internal wiring, and then building a set of ALKs. If you've been following the thread in 2-channel, then you know I think the main problem is the ringing of lenses at when I turn them up.

I do think they sound great, just right now as they are -- the 7's sound better to me.

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Guest Joshua Ryan Hall

Mr. McGoo/Bill:

We do not know who the new Reference Series dealers will be, yet. I'm certain those A/V specialists that begin selling the Klipsch Reference Series will conduct special advertising and customer events, and the marketing department at Klipsch will be doing everything we can to support them, too.

--Joshua

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Guest Joshua Ryan Hall

Kenratboy:

Good Guys will remain a Klipsch Reference Series dealer. The Circuit City rumor was simply speculation that was not and is not true.

To reiterate, here are the distribution channels:

1. Klipsch Reference Series, A/V Specialists nationwide

2. Klipsch Synergy Series, Best Buy stores nationwide

3. Klipsch ProMedia, Best Buy, Circuit City, CompUSA, and others nationwide

--Joshua

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I still don't understand why Klipsch would pull out of a very successful relationship (as I understand it to have been) for another venture when you could keep Tweeter and just add on Best Buy.

Also, will you not be able to purchase Synergy and ProMedia from the specialty A/V dealers? That is where I got most o fmy promedia's and our first synergy systems.

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Hi Josh,

Well from what I understand Percy's in Worcester MA will no longer carry Klipsch either.

We have a small HT group at my work. Someone brought up that they heard, through a reliable source (of course well its the same source that told use about the Klipsch pull out) that the Reference line will be available exclusively on-line.

This seems to be in line with the dismantling and starving the gray market distribution channels.

Any truth to the I heards?

Scott

Can't wait until Friday when I pick up my RF-7s from Tweeter.

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Scott:

That is an untrue rumor. Klipsch Reference products will only be available through A/V specialists with physical storefronts. A few of those specialists (such as good guys!) may also offer Reference online to those customers only in close physical proximity to one of their stores.

PhilH

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Phil,

Thanks for the reply.

I have been in the Good guys in Tacoma and Silverdale WA. Nice Stores..... Mag Hifi was nice too.

But unfortunately living in the Northeast Tweeter is the major sources for Klipsch. We do not have Good Guys, SA, Mag hifis just Tweeter.

Perhaps I will just have to wait and see how this pans out.

thank you

Scott15.gif

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OH.... Not good, I buy my equipment from Magnolia HiFi. Not good not good not good especially when I have built up a good relationship with my dealer at Magnolia HiFi. 7.gif

Furthermore, it really is bothersome considering I was just about to purchase another RF7. I was going to get a great price on it too, now I may just be outta luck. Again, you get a 7.gif

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Isn't Sound Advice in Florida part of Tweeter? I purchased my speakers from there because of their speaker upgrade plan, allowing customers to receive full purchase price of existing speakers if placed towards new speakers.

I wasn't planning on upgrading yet, but now I may have no choice if they are going to quit carrying the klipsch reference line. Any idea how long it will be before this new distribution plan takes effect?

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Oh Gadfly Hurtz, say it isn't soooooo....best buy? ...I know your rolling over in your grave...soon more from Tijuana ...going the route of polk...I can't say I ever sold much synergy but I can't understand why the change in ref distrubution...were magnolia and tweeter not doing something properly or did best buy have some requirements before picking up synergy? they don't even sell they clerk......14.gif15.gif6.gif7.gif

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