Sony Changes Management

1. Linda, Irman, David & Mike,

   Great points all. That said, NOW WHAT? To put the problem into context…

   At one time brick & mortar installing specialty retailers represented the lion’s share of the business for most suppliers. When the suppliers expanded their customer base to bigger boxes, brick & mortar installing specialty retailers continued to promote these supplier’s brands. When the supplier’s winked at transshipping to the guys in the back of the magazines, brick & mortar installing specialty retailers continued to promote these supplier’s brands. When these suppliers winked at the transshipping to the Internet guys, brick & mortar suppliers continued to promote these supplier’s brands. When the suppliers began to sell the Internet guys direct, brick & mortar installing specialty retailers continued to promote these supplier’s brands.

   Perhaps the time has come, based on your laments which are very similar to many other brick & mortar installing specialty retailers, to look to a leader, develop a force multiplying strategy and speak to the supplier community with some resolve.

   You have identified the symptoms of the problem. It is OK to complain. BUT Next the actual problem must be identified. Then action is in order. Absent that course of action, I am not sure the complaints will be very productive.

   I am happy to discuss in more detail. 949-228-2153 or [email protected]

2. The good old days of turning profit in a stereo shop have been gone for years. Industry trainers will cheerlead that “educate the customer BS” into the ground, and have for 15 years now. No matter how good a closer you might be, you can waste days of your time pitching some yuppie why he needs this that and the other option at your store and all about warranty, then two weeks later he comes back in with all the same product you showed him purchased online, and is expecting you to install it close to the same labor rate you priced using your product.
   Brick and motor sales are dead. We sell wire and installs now. That’s about it, if you have any sense you’ll start selling insurance or switch industries. The manufacturers have done this to themselves and they really don’t care they are moving more heat than ever. Sure there’s maybe five companies that won’t whore product out on eBay but give it time and they will have their own eBay store (or equivalent) in a year or two.

3. the race to zero start few years ago and now were so close to zero , look at the new pioneer nex , they were map pricing 10 days ago and now there below dealer cost, i never saw in any industry prices dropping like this from $1500.00 to $860.00 in one week!!!!!!! and pioneer guys keep coming and wants more orders from us???
   what a shame to the car audio industry not much left……….

4. Ray, there is ABSOLUTELY nothing these days that cannot be found on-line (and at ridiculous margins.)

5. Bobby, I agree with you. Ray, how do you expect the consumer to go and get this educational experience when, as soon as they compare the prices, they go straight to Walmart and look no further?

6. Bobby,

   I am in league with most of your observations and laments. That said I feel compelled to make one observation… The reason the lower priced stuff (hopefully lower featured too) is available in the Coke machines (big boxes) is because they typically are not capable of delivering an education (creating demand) to the consumer. Such an education is the WHOLE REASON a specialty retailer exists. To have better. To Show better. To create demand for better. To add value to the consumer’s listening experience. If its all about price… A specialty retailer will NEVER WIN. The focus should be on ADD VALUE.

   For sure there are many reasons to be disappointed with the current state of affairs.

   That said specialty retailers gotta lead the way in providing a consumer experience (including better product) that the consumer cannot hope to find at the big box or on line.

   Ray Windsor

7. Turning a profit means nothing to these companies anymore it’s all about how many boxes they can move regardless of the distribution. Kenwood reps came to us recently and asked “Why are you not buying as much product from us anymore?’ Well because you are now in Wal Mart an with the models you have ( same as I have except a different number on the box) I have to now knock off 10% to 15% of my price and make less money. Pioneer, Kicker, Sony, and now Kenwood! Isn’t JVC/Kenwood the same? Why are they both in Wal-Mart? Alpine is now my go to line because I can still make some money and no Wal-Mart. Are they a specialist line? Absolutely not, but it’s the best we got right now. Now do I dislike Wal Mart, etc, places having Kenwood, Pioneer, Kicker and Sony? Yes! But it would not bother me half as much if they would just change the box or even the product somewhat so that we could show our customers some differences. As it is now it’s all looks the same except for the model number. Tony you are right Rockford Power Class is awesome, but the price is to high for a large number of customers. Why not protect the punch series and give the prime to anybody or everyone? Rockford product on the internet is pretty much at cost so we don’t stock anything but Power Series. Hate it when a customer comes in and I am at MAP and they tell me I can get it for this. Sorry for the rant, but sometimes you just have to let it out.

8. It looks like the race to zero is starting
   To catch up to all the main brand factory
   I have notice kenwood and pioneer making
   Big changes the only one that seem to make
   Some good changes is alpine even tho I don’t
   Sale alpine in my store looks like them and Rockford
   With the power class are finialy making changes
   So is brink and Molitor stores can make a little money
   Hope the changes help Sony out

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