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Klipsch Makes Major Distribution Changes


Guest Joshua Ryan Hall

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got mine. I just order the second set of RS7s from sound city for an amazing price. In 2 weeks I should have the 7.1 up and blasting.

I find the decision unfortunate. It will be interesting if klipsch discontinues the 7 when the new .5 series hits the street.

Will best buy provide their employees training on how to sell the syenrgy line?

Big boxey vs small cubed.

My guess

There will be satellites like an HT in a box

Synergy line

Then the Reference line with a new focus on Bookshelfs (vice towers) but keep a single tower speaker RF35

Subs will remain the same with the RSW for the reference and the KSW line for an alternative.

Just my thoughts

Time to listen to the r7s

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The vast majority of the time manufacturers introduce new concepts in the high end model and then let it trickle down. Look at all the components we use. At first only the hi end stuff had thx, and of course it trickled down to nearly all surround sound receivers. Same with DVDA/SACD. So to keep this brief I find it difficult to swallow that the flagship speaker would not have undergone a facelift or component upgrade prior to the baby of the series. Perhaps there are other plans for the flapship. (wasn't the Titanic the flapship ship?)

For Klipsch's sake I hope I am totally off base, but in all my drooling in electronics usually the latest and greatest has all the cool new stuff, which is usually the top of the line.

Just my thoughts.

scott

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I think it is good for the the company and the consumer for the klipsch to be sold at best buy. I have friends that bought speakers there because it was convient, but they were crap. For the same price they could have bought some klipsch. I think they should sell the whole line there. There will be a lot more people that will become fans.

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but better to come. KLIPSCH soon!*****

****end quote*******

maybe not, ...bb where good audio goes to die....

*******************************

when the mass merchants become 65+ % of a mnfgrs buisness , as best buy will certainly be, they begin to dictate terms . They say "gee, we don't think that your models x and y fit into our price structure ; so either figure out how to make them cost us $40 and $60 less or we can't carry them"....The Klipsch guys (like polk in a similar situation) grab their ankles and say "yes sir, great idea sir!"...and thus goes quality audio...... 15.gif

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I told a friend who was looking at some direct-marketed speakers that the problem with the concept is that audio memory is so short that comparisons need to be made with the same gear in the same inviornment and while indeed this is great to do in your own homw, most people do not have the funds or time or patience or help of others neccesary to do a blind comparative demo in their own home. He pointed out that cc and bb are rarely able to get the combination of equipment that he wants to compare to work together...I say they are not concerned with the appeal of the quality of product as much as they are with the appeal of the price, and this is why people should choose a better retailer with a better sales staff which has the ability to a/b speakers,etc...Because he is one of those people that marketing can convince that he can get a product just as good for half the price he was hard to persuad(a very tight bast@&d he is)...so I told him to buy the direct marketed product of his choice and I would bring over several alternatives at the same price point and do a comparative demop...he now owns a fine set of Mirage omni50's.........if the mnfgrs of hi-fi equip persue the "NO-comparative-demo" retail/etail model then it will be price over quality...just like rcvrs with all the features in the world but no build/sound quality....

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Klipsch takes its leadership role as the number one supplier of high-performance loudspeakers seriously. The sale of audio separates has been declining at 15-20% per year for the last three years. The primary reasons are that times have changed, people have changed and consumer desires have changed. Most specialty manufacturers have remained focused on limited distribution, with little regard to the environment in which many consumers want to buy products. We feel an obligation to try and bring the experience of better audio to a larger audience. As a market leader, we refuse to sit by idly as the market continues to shrink.

Klipsch firmly believes our state-of-the-art, high-performance products must always be represented by our highly trained and knowledgeable specialty retailers. We also believe that many consumers in many markets have never had the specialty retail experience, nor are they familiar with what it is. For 2-1/2 years, we have successfully executed our Klipsch ProMedia strategy through Best Buyconnecting with an entirely new customer, giving them their first step-up audio experience with a true high-end audio company in the multimedia space, and educating them on the advantages of our high-performance home loudspeakers, only available through our specialty retail partners.

As many specialty retailers migrate toward custom installation, Best Buy is filling the lower mid-fi void in an environment where many highly educated, high-end consumers want to buy. Best Buy will do a great job representing our Synergy Series, enlightening significantly more people to the experience of high performance audio. The natural evolution will be converting many of our best Synergy customers to the ultimate in high-performance loudspeakersthe Reference Series.

Paul Klipsch brought the Heresy (non-fully horn-loaded speakers) to market because times had changed, people had changed and consumer desires had changed. He too wanted to reach out and expose more people to the passion of high performance audio.

With regard to the new Reference speakers, Klipschs top 25 retailers have been in Indianapolis over the last 3 weeks and their unanimous opinion is they are the best sounding line of speakers Klipsch has ever produced. You dont have to take my word for it, but I encourage you to audition the products when they hit the stores in May. Ive been with Klipsch for over 11 years and I think these new Reference products are the finest products weve ever taken to market.

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Mr Jacobs,

Thank you for taking the time and addressing this topic in such a public arena.

I am sure that my disappointment of Klipsch discontinuing relations with Tweeter is felt by others. What I find most disheartening is the fact that the Klipsch products are being undermined in the so called gray market. The gray market prices are far more attractive ad well below what most retailer can sell them at while maintaining an acceptable profit margin

With the limited availabilty of Klipsch in the Northeast I can only assume the gray market will pick up where Tweeter left off. The gray market has hurt your authorized dealers. Personally I have purchased a full Reference 3 setup and an RSW10 setup for nearly 34% less than the retailers in my area could offer or would offer. I understood the implications, many consumers do not, of buying from the gray market and willingly accepted the risk.

Will there be steps taken to eliminate the gray market to protect the limited numbers of authorized dealers and unknowing consumers as well as protecting Klipsch's name and reputation?

Regards,

Scott Carroll

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Best Buyconnecting with an entirely new customer, giving them their first step-up audio experience with a true high-end audio company in the multimedia space, and educating them on the advantages of our high-performance home loudspeakers, only available through our specialty retail partners.

*******************************************end quote

wrong....they will expose the high-end customer to a cheaper version that they can't compare to the ref series and can't even compare to the jbl's ,etc., which will cut into their higher-end sales and split jbl's buisness ...see polk....God ,I feel for Paul , 'cause he'd be flipin' his lapel by now......

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Best Buyconnecting with an entirely new customer, giving them their first step-up audio experience with a true high-end audio company in the multimedia space, and educating them on the advantages of our high-performance home loudspeakers, only available through our specialty retail partners.

*******************************************end quote

wrong....they will expose the high-end customer to a cheaper version that they can't compare to the ref series and can't even compare to the jbl's ,etc., which will cut into their higher-end sales and split jbl's buisness ...see polk....God ,I feel for Paul , 'cause he'd be flipin' his lapel by now......

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

On 2/17/2003 1:58:33 PM justin_tx_16 wrote:

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.

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

My friend works foir Sound Advice here in Florida, and Tweeter just Bought em !

He told me Tweeter ripped off B&W, so B&W pulled the line from Sound Advice when Tweeter bought em !

Perhaps Klipsch wants to actually get PAID ??

What a far fetched concept, EH ?

Say La Ve, Sound Advice, and hello Best Buy !

Good riddance to Sound Advice anyway !

All they ever did was bad mouth Klipsch products anyhow !

Every time I strolled in a Sound Advice store, all they did was tell me how Klipsch sucked !

How I " Needed " Martin Logan ??

Good Riddance to Sound Advice and their 2 for 1 whoreing of Klipsch product.

I shall not shed one tear, not one !

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I am sure that my disappointment of Klipsch discontinuing relations with Tweeter is felt by others. What I find most disheartening is the fact that the Klipsch products are being undermined in the so called gray market. The gray market prices are far more attractive ad well below what most retailer can sell them at while maintaining an acceptable profit margin

**************end quote*******************

This is one reason that I'm not all that upset about not selling their speakers any more....

As with Denon ,I will not show products whose mnfgrs turn a blind eye to grey market sales as long as their #'s keep growing....

this on-line availability shows the appeal of the short term dollar chase while cutting your wrists with your retail partners...I'm sorry the old man is gone , clearly the company is going for the fast buck....time for me to dump inventory and change direction ........AND inform my customers into what changes are occuring15.gif

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Guest Joshua Ryan Hall

REFSELLER:

For the sake of me and others here understanding your reactions and perspectives, will you please identify who you are and at what dealer you sell/sold Klipsch Reference loudspeakers?

--Joshua Ryan Hall

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I'd prefer not to if that's o.k.....these opinions are my own and I would rather not involve my company in this. I am sorry if my tone is harsh, I've been selling A GREAT DEAL of Klipsch speakers for MANY years , and unfortunately am taking this a little too seriously. I should feel that it's just time to move on, but having met the ol' man years ago, I am disturbed by what is happening. I am of the opinion that when I now pitch Klipsch speakers their perception (with the enthusiast) will be affected by their availability in bb and the average joe won't be able to listen to both series side-by-side and may just go to bb to buy the synergy, which will eat into my ref sales. the easiest way to sell the refs was to play them against the synergy. People will always gravitate towards the cheaper klipsch in the abscense of an A/B comparison......Audio memory is short......undoubtedly the company will have to devote more of it's resources to producing the cash-cow line ,taking away from what will be devoted to the heritage and ref lines....

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Refseller

Mr Jacobs, klispch COO, took the time to post response to our concerns.

In my eyes, I respect him for taking the time to respond to our concrens.

This decision appears to affect your future livelihood and financial stability. With the passion you have demostrated I have no doubt that you believe in the product and have a strong desire for your customers, family and friends to experience the same passion that you feel. I commend you for that.

As a reseller your resources to discover the facts behind this announcement have got to reach a great deal further than those of the average day consumer/forum goer. The relentless pursuit of the details surrounding Klpsch's new business strategy in a public forum, anomosity towards their decision and using the BB as a resellers soap box accompanied with the reluctance of using the retailers name as to protect them, seems to have crossed the line hyprocrocy. On one hand you want Klipsch to expose the details of their new business strategy publically but you refuse to share the identity what resellers soap box you are standing on pubically.

Perhaps sometimes information is withheld to protect the interests of companies and as it is sometimes to protect an individual.

We do not have to like or agree with the posts or business decisions Klipsch makes, we can voice our opinions and concerns, which we both have, but ultimately Klipsch will either bask in the new found glory or sink like the Titanic. If the latter is the case both you and I can gloat in saying WE told you so.

Scott

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We do not have to like or agree with the posts or business decisions Klipsch makes, we can voice our opinions and concerns, which we both have, but ultimately Klipsch will either bask in the new found glory or sink like the Titanic. If the latter is the case both you and I can gloat in saying WE told you so.

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@end quote...................

I agree wholeheartedly, offering my opinion is all I'm doing.......

If my tone is too emotionally charged, please be understanding of why...I will turn it down a notch, sorry if I offended anyone.....

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Is klipsch going to set the selling prices on these speakers? I know that some of the other compinies do this, and I think it might be a happy medium. The good audio shopps wont here the there cheaper at bb then. I know Polk does this and it doesn't seem to be effecting there sales. I think Klipsch should take a very good look at this so it won't blow out of control. Hint Hint Hint.6.gif6.gif6.gif

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I do not know for sure but I would assume there is some type of contractual agreement for price control.

The problem resides in the fact that there is such a large gray market selling the same product at nearly 1/3 the price as the brick and mortar locations. How can stores like Tweeter compete with that. They can't!!!

Klipsch doesn't need price control they need distribution channel control!!!!!!!!!

scott

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

On 2/27/2003 5:51:59 PM T.Paul Jacobs wrote:

Klipsch firmly believes our state-of-the-art, high-performance products must always be represented by our highly trained and knowledgeable specialty retailers.

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

And so you remove them from "Magnolia HiFi" and keep them in "The Good Guys", oh CMon! You need to wake up and smell the coffee if you think your speakers are being represented well by "The Good Guys". They don't know their a$$ from a whole in the ground. And talk about dishonest...7.gif

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