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J&R not selling Klipsch by phone or online


Dr. Dave

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They are authorized and I have purchased from them. I live in NE and had my order the next day. I believe you do need to ask for double box if that is what you want. I forgot, but my box was covered with Fragile Stickers. I would do business with them again in a heartbeat. I just hope that bringing attention to them on this board does not hurt their ability to mail order.

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I agree with Charlie. I live 60 miles from the nearest dealer. If I would like to purchase the products, I have to get in a car drive for an hour, deal with the dealer, and drive an hour home. I purchased my RF-3s from the dealer in a face to face transaction. They had a great price. Now they have jacked up their prices, so I mail ordered my RS-3's. I was going to replace my center PSB with the RC-3, but it looks like I will almost have to pay retail for the center. If that is the case, I will pass on the transaction. I really think that Klipsch is shooting themselves in the foot. There are several reputable internet dealer's out there and should allow internet sales, but police the companies that provide the service.

I understand that the retail shops have to handle the overhead, but there is a couple of models that one can work from. One is to provide the goods at a fair price, one that provides a profit and competes with the internet sales shops and sell more units so that the total margin remains the same. The second is to sell less units at a higher price to achieve the same total margin. I have know several retailers that have found the former model to work much better than the latter. Additionally, there is add on sales that the retailers can achieve through cable sales, etc. Just my 2 cents.

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I'll have to chip in with my two cents also.

I ordered my sub and surrounds from J and R. The local shop wouldn't even come close. I work for my money and spend it wisely, so if I have to pay full retail, I may have just bought my last set of Klipsch speakers. Or untill the nearest dealer comes to his senses, but with this memo, I don't see that happening.

I know somewhere someone at Klpsch is tracking sales. I'd like to see what impact this has over the next few quarters.

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A guy has to ask himself the question: Do you really need a warranty? If I was SOOOO concerned about havimg a warranty I wouldn't be looking at Klipsch. Klipsch makes a great product. I would take my chances.

Buy from whoever has the product. Period. If Klipsch only wants to sell to customers who have a dealer down the street, hey, fine. If they can make a profit that way, good for them. Amazing that a company can can flourish that has such a restrictive, non-customer friendly policy.

As for me, shoot, I'll turn to eBay and buy used or from whomever. Would rather buy new from a good dealer but right now Klipsch's policy makes that difficult for me. My local dealer has nothing in stock.

Simple solution is for Klipsch to get a couple on-line vendors and set a price floor on their stuff. Local vendors get price protection but at least a guy in Podunkville has options.

Good Luck and Klipsch On!!

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Since I've learned so much by reading these boards, I'll tell you guys what I've found...believe me, I've done my homework. I read reviews and listened to the Reference series at my local dealer, and am dead set on getting the entire set along with the subwoofer. I found the set much cheaper at Crazy Eddie's, go figure. Though he claims the warranty is good, it's not. The only places online that Klipsch honors warranties from are Vanns and Ubid, funny how the prices at Vanns are the same as my local dealer. Anyway, I just got off the phone with Vanns, and they have FREE SHIPPING, and they even throw in a 20 ft monster cable for the sub for free. My advice if you don't have a local dealer nearby is to buy from Vann's. What good is a warranty?? Blow one speaker and ask yourself that question again. As for myself, my local dealer is having a sale next month, 50% normal markup, that's the time to buy since this higher-end stuff is marked up substantially. Good luck shopping fella's!

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I already have a solution to circumnavigate this policy. Of coarse I will not be posting this solution. As I am sure it was our praise of internet deals that got everybody's underwear in a bunch. I guess we are going to have to keep our traps shut (or in the case of the BB, or fingers tied). Hell I could fly out to NYC stay in Time Square at the Marriott then rent a van and drive home and still save money for the difference in the price of my system compared to the local dealers. And yes I know the Marriott is $265+ a night. My question is, what is Klipsch doing to promote its products to other dealers? Are the dealer incentives that bad that only one dealer is willing to carry some of the best valued speakers on the market? In my area there is more competition for names like: B & W, Hales, Martin Logan and Krell than there is for Klipsch. Sorry about the ranting, I do love my Klipsch speakers. I just think there has to be a better way to manage Klipsch transactions in the marketplace.

Happy listening and enjoy!

JT

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Dr. Dave, Kief's is in Lawrence ,Ks and are pretty good people to deal with. At least in person they are...They ARE a authorized dealer and carry Klipsch and others, they also carry a good line of solid state and tube hardware. Saw some Bryston equipment I'd like to have.....

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Since Klipsch's letter applies specifically to Internet sales, I imagine that mail-order and telephone sales from non-local authorized dealers are still possible. At least I hope that's the case...I was fully planning on buying a Klipsch RSW subwoofer when they become available, but I only have one dealer locally, and they don't discount. If I can't get the sub through mail-order or otherwise, I'll be forced to go with another brand. Klipsch really seems to be shooting themselves in the foot with this internet policy.

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While I understand Klipsch's desire to support their dealers by controlling the use of the Internet by the dealers, the company is fighting a losing battle. This is the same war fought and lost by the IBM company in sticking with the dealer channel to sell its PCs. In 1999 IBM lost more than a billion dollars on its PC business due to its unwillingness to recognize that people know a good deal when they see one. Having realized their error, IBM is back on the road to making a profit on the PC line selling direct to the consumer and through mail order and internet dealers. Would that Klipsch would learn from this example.

The point is to stay in business and make a profit while making a quality product. If you can't reach the people who want your product you WILL lose business. E.g., I don't have a lot of confidence in the local Klipsch dealer when the total store is less than 500 spquare feet and they have only one pair of Synergy speakers on hand. Their primary market is auto speaker systems. They're willing to order anything I want but I have to willing to buy it to hear it. Thanks but no thanks! I would buy from a known reputable dealer that just happens to have a web site from which to sell a product I know. How about having large regional dealers who carry everything Klipsch sells and giving up on the little guys who aren't really interested on selling the product, but simply want to trade on the name recognition?

Its time to get the premiere speaker manufacturer out of the first half of the 20th century and into the present.

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

Richard Hemmings

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Richard,

Good post above and agree. However, I don't think Klipsch cares about growing their business. I really don't. They see themselves as a high-end manufacturer of audiophile speakers that sells to a small segment of the market.

And, it appears they want to stay that way. Unlike IBM I believe Klipsch is not publically traded on the stock market and thus has no shareholders to please. In a privately held corp as long as the top brass is getting paid what they want there is little incentive to take care of the "customer". Since the Klipsch Police have spoken earlier on this board it is very clear that Klipsch views their "customer" as the local dealers and not guys like us.

However, for the sheer sake of pride I wish Klipsch would hold their holy beloved dealers to higher standard. Do they send reps to the field? Doubt it. It is total BS that you have to buy speakers sight and "ear unseen." I struggle with that here. My local dealer does not manage his inventory. Has no earthly idea when certain models will be in and doesn't special order etc. And, I actually had to take the sales guy to the section of his own store to even show him he sold Klipsch!!! When I said I wanted to look at Klipsch he said "we don't sell Eclipse". What an idiot! But, hey, Klipsch thinks the local dealer is such a prized possession. They knew less about their products than 99% of us that read these boards do.

Anyway, my frustrated 2 cents worth...

Mike

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Let's just hope that someone at Klipsch who is in a policy-making position reads the posts on this forum. One of the main reasons I purchased Klipsch speakers (and, I suspect, this is the same for many others) is because of their high performance-to-price ratio. My local dealer was willing to enhance that ratio further (by giving me a package deal) because he knew that I could purchase through mail-order or internet sources. I did pay a bit of a premium by purchasing locally, but it was worth it to gain the extra service my dealer provides. However, there is a limit on the premium I am willing to pay to purchase locally, and Klipsch, through this new, heavy-handed internet sales policy, is going to seriously reduce the negotiating power we consumers have. Additionally, many, many people seem to lack faith in their local dealers and some may not even have access to a local dealer period. Klipsch has to realize that customers come first, and by alienating their customers in this way, they're going to lose sales to other brands which have more flexible sales policies.

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And I had some hope for them making some progress in the past year since this last came up on the boards here. Oh well, I guess I'll just have to be descrete and private when helping people who have questions regarding this in the future. I'm glad that klipsch cares about me enough to make me pay a significant amount more and deny me my perfered method of shopping for big ticket items.

-Q

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I agree that Klipsch should not disregard the internet customer. However I have never tried to buy any brand of speaker on the net. Are there speaker brands that do market well on the internet and are they equal to the quality of Klipsch speakers?

TKA

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I don't want to sound like an a&s kisser,but

the administrator hit the nail on the head.I too have purchased items from "unauthorized dealers" in the past because of price and local unavailability.But I think that price aside, any of you really understands that Klipsch has to have dealers to market their product.I too am happy when I purchase an item over the internet and get a good product

at a savings.When I get a bad item that is defective I have to hope that the etailer hundreds of miles away will stand behind his sale.I am tired of typing now and will cut to the chase:The other day Dell sent me some software to download to my computer.I had trouble with the software and it also corrupted other programs.A few days later Dell called with a survey and I lamblasted him about the crappy software.He asked me how I liked my computer.I told him every time

I used my computer and ran in to new problems

I would sit here pizzed off and my eyes would

wander down to the Dell logo.I of course associated the sortware problem with my Dell.

Well I do like the computer but I am still peeved about the software.The analogy being Klipsch,I am sure, spends lots of time and money cleaning up behind others.They would like for you to be happy with their product and if not you can take it back to your local dealer who will make it right.I intend to do more business with e-tailers but I will

check and buy from local dealers if they will

be somewhat competitive.By the way, went to a local dealer today (I was not aware they were a Klipsch dealer) and auditioned the Reference line.They had KLF20's for $999 a pair.It was the hardest thing I have done to leave without a pair of them.I can go back tommorrow ,though.Lets give the local dealers

a chance,for our own good.(the Reference was

brighter IMO than the Legends-played thru Sony ES & Denon 3801-the Denon was quiter too).KLIPSCH ON!

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I agree that there should be some regulation of Klipsch products, but there needs to be some meeting ground for future distribution.

I recently visited my local dealer and inquired about a KLFC7 speaker. The MSRP is $600. The salesperson pulled it up on the computer and it showed that they stopped carrying it and it had sold out at dealer cost for $300.

A 100% markup is ridiculous. Restricting sales hampers the free market and makes such markups possible.

There needs to be a compromise where compition can reduce dealer profits to a more beneficial level for the customer. Authorizing more dealers, wether online or not, would help make this possible.

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There is one thing that bothers me about the whole klipsch internet thing. On one hand they slap the "uncles" and on the other hand they themselves sell on the internet. They unload all of their discontinued stock through Ubid. They don't even try to pass the discontinued business to the dealers.

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And I thought you guys were just a bunch of yahoo audiophiles...imagine my surprise upon returning to the list after a brief absence, to see here all these thoughtful messages on the state of Klipsch's internet policy.

I've been away on a several day journey to get to the nearest authorized bricks'n'mortar Klipsch dealer, so I could pay MSRP. I failed. I couldn't fit the speakers into my VW bug, and since I live well outside their local area, they weren't allowed to deliver or ship. What's a poor doc to do?

But seriously...what are we consumers to do? I'm not a genius, but it seems that the official Klipsch internet policy is likely to backfire (as similar fear-based responses have for others - thanks for pointing this out Dick). No doubt the current situation is complex, and there are no simple, easy answers for transitioning to a more flexible marketing model. Many retailers are grappling with similar issues to those that have prompted the strikingly Byzantine course of action adopted by Klipsch. All I can say is ,"Good luck!" Fortunately Klipsch makes a superb product that at least a select few consumers want. Otherwise their punitive internut policy might hurt them more than it probably will anyway.

Schwar: I don't think the policy letter would allow the kind of mail order and telephone sales you suggest. At least that's not my take on the document.

Dick: your posting was directly on target. Though we both are probably underrating the very real difficulties facing Klipsch . Still, the equivalent of their response has been tried before with unfortunate results, as you point out.

MBM135: Perhaps you're right on target, too. Slow growth is a perfectly justifiable business strategy. "Small is beautiful"?

qball: You sorehead! "I feel your pain, man!"

Webmaster: Thanks for taking the time to post so thoughtful a response. And thanks as well for sharing the internet policy documentation. The historical picture you paint does help me see your situation in a different light. I can understand how this response is good for customers from the perspective of protecting them from the potential of unauthorized junk or shoddy service. But from several other angles, I'm at a loss as to how this policy is, on the whole, beneficial for CUSTOMERS. It seems mostly designed to protect DEALERS (I know they're key, especially in your business model). I know you may say that in so doing you are ultimately benefitting the customer, but I don't think it will work that way for most people.

I disagree strongly with only one statement in your fascinating posting: your contention that this policy "encourages dealers to expand their horizons through the internet within the parameters of the new policy." Within those parameters there is little room to see a horizon, much less to expand one. But, no doubt that's just a difference of opinion. I am truly biased on this matter. I live too far from an authorized dealer to make business there attractive. So, I feel like I'm stuck.

By the way, I did a word count on your posting, and here's the score on the number of times the following words appeared:

CUSTOMER - 3

DEALER - 14

I know this is a cheap shot, but nonetheless, as a CUSTOMER I have to wonder if this isn't reflective of the emphasis Klipsch is adopting in its internet policy...

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yea the Dr. makes a great point. in a nutshell klipsch needs to develop there own e-commerce system like a KlipschDirect rather than simply rely on the dealers for it. then

klipsch can market all their speakers to the areas not covered or to where the dealers don't get w/ the times. a good case study might be Compaq Computer vs. Dell, given that

computers are more of a commodity but on the other hand e-commerce sales growth is still in it's infancy. great speaks though smile.gif

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