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Interesting Klipsch is going after a few internet "stores" Good one


TheEAR

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Here is what I found

"Klipsch Audio Technologies announced today that it has filed suit in the U.S. District Court for the Southern District of Indiana against companies operating the following internet sites: crazyeddie.com, 50TopSellers.com, AuthorizedElectronics.com, TheBestPriceStore.com, and HomeTheaterPhiles.com. Klipsch is seeking recovery of damages as well as an injunction to prevent the defendants from inducing authorized dealers to transship Klipsch products, interfering with the contractual relationships between Klipsch and its authorized dealers, infringing on Klipsch trademarks, illegally using Klipsch's copyrighted materials, and otherwise competing unfairly with Klipsch."

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Hey, that's really GREAT NEWS because I really do hate buying things for less. In fact, I always tell my car salesman to keep his factory rebates and cash back because I prefer to pay full price when I buy a car. Heck, let's get rid of all tax cuts too, as I'd much rather have more money taken out of my paycheck!

Pardon the sarcasm, please. I understand the premise of what Klipsch is getting at. But I'm kinda on-the-fence with m00n on this one. Only Klipsch and the brick-and-mortars stand to really gain anything out of this. And, also the few unfortunate consumers whom may have been sold (used) goods that weren't what they thought they were buying. I do agreed with the premise. -Picky

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Picky, back in the day when I actually worked in a retail stereo store for a few months, the highbrow lines wanted monthly reports of how many units were moved and how many were discounted and deeply discounted. The store signed ironclad contracts that only allowed disounts during certain "permissable" periods, and deep discounts only when directly approved by the manufacturer.

Cruel as it may seem to you and others, if Klipsch wishes to retain its reputation as being one of the vanguard speaker lines, then it MUST protect its price line. The easiest way to undercut its market position is by allowing retailers to independantly adjust price lines without consent.

The balancing act is a Catch-22. Klipsch is in a volume and revenue maximization mode, while still seeking to hold price line. If you are a wise consumer, you will save your money and wait for retailers that lose their Klipsch dealer license, then rush in to score a deep discount. You also could pick up discontinued models or wait for the once or twice a year sales. You could even consider the used market. Just don't hammer Klipsch for doing what they rightly perceive as protecting their turf - because it IS their turf!

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Ear: Appologies. My sacasm wasn't meant to be aimed directly at you.

Dave: Thanks for enlightening us on how this retail game works with the manufacturer/retailer contract. I never did understand why the prices are fixed on certain products, yet not on others. Now I do. Believe me when I tell you that I am not flaming Klipsch for doing this. I really don't blame them, especially now that I have a fuller understanding thanks to you. I did (and do) buy all of my Klipsch products from local, authorized brick-and-mortars and because of that I have a fully warranty and dealer service at my disposal. As you mentioned however, that was "In the day". But, today, things in the retail game seem to be changing faster than the manufacturers can keep up with due to online sales. I certainly know that I personnaly have saved an enormous amount of money by shopping online for some things, and yes, at the expense of local brick and mortars. As cruel as that may seem, it is now a reality. It's hard not to utilize such tempting resources when the most important thing to many consumers is price. Thanks for your insight. -Picky

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On 2/2/2004 4:14:15 PM Fish wrote:

This is not really an easy issue to take sides on.Klipsch is within its rights but,I ain't payin $1800 for a rsw15 and would venture to guess not many would.

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I agree with Fish, Klipsch has the right, but guys like me will be the losers.

Bought my Reference stuff at the local Sound Advice on a whim because it was on sale and I got a good deal. Might have bought the RSW-15 at the same time had they carried it and had it also been on sale. $1800 is too much for me.

A local home theater installer is my Klipsch Reference dealer now and if they don't do deals, my next Klipsch purchase is going to have to be used.

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You are close to being right, Dee. The ones in the worst position are the old fashioned botique stereo stores that are getting the double or triple whammy. Flip's is a great example. They were fairly hardline at hewing to the retail price, so people flocked to the gray or backdoor market and got the price they wanted.

Flip's can't compete with Best Buy on volume. They can't compete with Ultimate Electronics on price. They won't drop their quality product lines for cut rate or lesser but good product lines. The Heritage speakers supply line that were their bread and butter for years dried up and withered away. Flip's closed.

I can't get a price quote for ANY Heritage speakers in St. Louis from Best Buy or Ultimate. I don't want to buy reference line speakers. Ergo, I buy used.

The more product Klipsch puts on the market, the larger the percentage that ultimately will be sold at deep discount because they are now dealing with arena dealers that have little desire to hold price lines. The arena dealers depend on volume and turnover, not quality and customer loyalty. It will be interesting to see how the clash internal to Klipsch, and the dichotomy of sales pitted against quality plays out.

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