Opinions on Magnepans sales/marketing approach to

This is probably a naive question, but I'll ask it anyway: Why don't middle-sized manufacturers like Magnepan built 5 or so pairs of "demo-only speakers" that they will ship to potential customers to audition in their home for a fee? Here are some thoughts on how it might work...

--The fee is just enough to allow the manufacturer to break even on the cost of construction/shipping/logistics for the "lending program." They don't make money on the fee, to keep it as low as possible.

--Maybe the customer is allowed to keep the speakers for 1 week, and then the shipping/freight company picks them up from him and ships them to the next potential customer. In other words, the speakers never go back to the manufacturer unless they develop a problem. They simply circulate from potential customer to potential customer.

--After his 1 week in-home demo, if the customer wants to proceed, he then buys a new pair FROM HIS LOCAL DEALER, who provides him with all the subsequent support he needs. That way the dealer doesn't have to stock the speaker and the customer gets to hear it the way he wants, i.e. in his own home with his own equipment. Everybody's happy.

--Maybe the lending program is ONLY FOR SELECT MODELS, so that the local dealer isn't cut out of the picture too much. And maybe the lending program is coordinated through the dealer, so that the dealer can do a certain amount of "filtering" for the manufacturer, to weed out the crazies.

--The cost of the in-home demo may of course get expensive if the speakers are very large/heavy, due to freight costs. But the folks who can afford large/heavy/expensive speakers can probably also afford a more expensive demo, given that they may be about to spend more than $10K, $20K, $30K... And for smaller speakers, amps, preamps, etc., the cost of freight is much less burdensome.

--Since the lending program is through the manufacturer, it costs the local dealer exactly $0. That should diminish the implicit or explicit pressure dealers sometimes apply when they agree to an in-home demo of their store's stock.

I, for one, would be VERY tempted to participate in a lending program like this, and I suspect there are plenty of other audiophiles who would feel the same way.

Bryon

I suggest next vacation plan a trip to Boston, enjoy the sites and listen to the 20.7.

Funny! :-)

BTW my initial post/question was about business judgement and current dealer situation not about the character of the folks at Magnepan or dealers. Everyone at Magnepan I have ever talked with have been helpful and wonderful to work with over the last 25+ years I have owned Maggies

Having said that the fact is in the DC/Baltimore area you cannot hear 20.7s a 14k flagship speaker for Magnepan. You can however hear many Wilson, Avalon, Magico, Meridian models costing 2-6 times their price.

I am not really sure what that says but I do find myself asking how many dealers have actually heard the 20.7 and if not how can they recommend them? What is their "value add" if they themselves have not heard them?

Not crying poverty and I have been a Maggie guy forever, but I still cannot see spending 14k on something I have not heard.

Thanks for feedback.

Wendell will need to soon move on with an estate plan. That will trigger being acquired by one of the mega buck hedge funds. ARC was the latest to need an 'estate' bailout. Small companies no matter how profitable they are, need liquidity so they can fund the owner's retirement and pass on the wealth created to the heirs. The trade off for customers is that production will need to grow and marketing vastly expanded. Distribution of the product will need to increase. I would not be surprised to see Maggies at Best Buys hi end business.

In a way, I think that the comments posted above apply to much of hi-end equipment purchasing experiences.

When I was a kid, a buddy and I used to hang out at a local super high-end retailer to listen to the latest and greatest gear coming out. Being just kids, most of the time we just listened and gawked because we didn't have the dough to buy.

Today, there aren't that many high end retailers around and certainly the breadth of equipment selections no where approaches the many fine brands on the market. And as I have said on other threads, I am uncomfortable hanging out at the few brick and mortar shops still around unless I am ready to make a purchase. I think it is inconsiderate to take up a saleperson 's time unless I am a serious buyer.

So what is one to do?? We're kinda stuck with relying on reviews and comments from other A'gon members. Also, a lot of my gear is made by old line companies who have excellent reputations like ARC and VPI.

Welcome to the modern web based IT economy.

Just my opinion.

Elizabeth, You may be right about keeping the company the size it is, I guess, we will see. The 3.7s were my 4th set of Maggies I have purchased and I for one will not buy the 20.7s without audition. I am fairly sure I would buy them IF I could hear them 1st and cannot imagine I am alone.

Having said theat there are only 2-3 dealers in country with 20.7s on floor where as almost every dealership had 20.1s to audition. From my recent conversation with Wendell I do believe he realizes he has a challenge and flying folks to White Bear Lake isn't going to work too well. The back order ststus will subside as all the "early adopters buying the latest and greatest with no audition" comes to an end

I also have to ask how can you have a "statement speaker" when no one can hear it?

I agree, the business model going forward on $10K and up speakers will be buy on the review. Dealers have little incentive to stock demo's on those price points as auditioning them is so subjective. Only in hearing in the listeners environment will work for many. Also, a dealer stocking problem exists as few manufacturers will 'floor plan' the units for more then 30 days. Even with the dealer getting list price, it will be hard to make money on the carrying cost of the demo and inventory.

I wonder if this will backfire. I bought my 3.7's back last November, while Magnepan was blowing smoke about the 20.7 rumors. As it is, I like my 3.7's well enough there is no way I will take a beating on reselling the 3.7's, then buying the 20.7's without a decent audition. If I heard the 20.7s at my dealer, who knows? I can't get too mad at Wendel though. The 3.7's perform way above their cost.

This is going to be the type of buying we are going to be faced with in the near term future and it is only going to get worse -in audio and probably many other commodities. We have created this problem by insisting on the best possible deal and buying from some saavy person selling whatever it is, for less on the internet. The lure of lower price is difficult to resist for most people. As you said, in this economy, we can't afford a bad purchase decision.
The only salvation maybe the emergence of a new business plan/model where regional "Demo" stores somehow supported by the manufacturer will exist to audition before purchase. This has been done in a way with regional home based audition/sellers.
I haven't heard much about this since leaving my old home area where there was a home distributor audition person or two, and some brick and mortors that still survive.
It is only gonna get worse until we come up with some kind of solution.
Personally I had to go through several years worth of making a bad purchase for my taste and selling at a loss. I had to buy most of my components on faith. It is an expensive way to go. Strange all that in the name of buying for less actually costing more.

It's much easier to do it. You don't have to have an extra space to demo just push links with great reviews and find some or more dumbs to go for it.