HELP Electrocompaniet stole Christmas


What a mess:
After finally deciding that spending money on the latest EMC-1 parts mod, I contacted Electrocompaniet's distributor back in October to arrange to bring my EMC-1 MkII to him directly in PA so as to avoid RT shipping risks and expense for this 50 pounder. All was set for a Christmas week mod, as I was to be in NJ visiting my relatives that last week.
I called on Christmas eve to arrange a drop-off time, and was told that Christmas Day noon would be fine, but that I had to arrange the deal through a dealer! Yikes! So I remembered Fathers & Sons and called them, arranging for the paperwork and profit to be credited through/to them. Fine. So I drove 2 hours through a nasty winter storm to arrive at Warshaw's house, where he said he'd NOT perform the mod if my EMC-1 didn't have a serial number on it, as there was a grey-market guy in New York who sold a few of these this year. I assured him that mine indeed had a serial number, was produced in spring '01, and bought used by me in summer '01. He said OK, and lugged the player into his house, saying he'd call me in a couple of days to pick it up. Great!..............
I returned to NJ and watched the storm intensify....
Two days later I called to arrange a pick-up hour, and Alan told me that he did NOT perform the mod because the player had been originally sold by a Danish dealer, and NOT through him, so he had made a decision to NOT support any players not originally sold thorough him. No warranty repars, parts, nor mods!..............
I was stunned, couldn't convince him to make an exception since he had never asked me to provide a serial number beforehand, and I went through a total of a half-day of driving through a storm to accomplish this mod.
He just told me to come pick it up at my convenience. I glumly arrived on Saturday and retrieved my untouched puppy, where Alan said that unfortunately I had to share the victimization of the gray-market. I asked if I should contact a Danish dealer to see if a board-swap could be done (of course thinking he didn't really know the answer), but he thought that Electrocompaniet wouldn't support my player either! I asked with some incredulity what was going to happen with all the players that people have when they move from one country to another (!), but he said that this policy was the only way they have of penalyzing the gray market.... I suggested that in THIS CASE he should have installed the mod because of his lack of due diligence in assessing the production/sales history of this particular CDP, ESPECIALLY given my enormous effort in delivering it to his doorstep on Christmas Day.... I left sadly but gracefully.
WHAT SHOULD I DO? I contacted the Danish dealer but he's not responded. Should I contact Electrocompaniet directly and try to arrange a board swap or purchase the parts mod "kit" and instakllation directions (I'm pretty familiar with boards and soldering)? Should Alan have acted differently? Isn't the world getting small enough so that internationally-sold products should have protected lives independent of sales point?
PLEASE HELP!
A Happy and safe New Year to all!
Ernie
subaruguru
All I have to say is this is an upgrade.

The dealer is really, really, REALLY stupid for not perfoming the work because his profit margin has to be amazingly high. I know this because I have friends in Scandanavia and EMC gear is consistantly 50% to 70% of what it costs retail in the US.

Electro really needs a way to remedy this disparity in price. Electro (and Electro distributors) should punish dealers that sell grey market and NOT customers.

Electro and it's distributors should realize that it is not the distributors or dealers that keep them in business, but it is ultimately the customers that do.

You piss off one customer and have the possibility of the effect snow balling. And boy is this one snow balling!

I do agree, however, that Alan was well within his rights to not perform the upgrade. Heck, up until not too many years ago, many retail stores (of all types) did not allow returns on merchandise. And it is well within the rights of stores not to allow returns. HOWEVER, very few retail stores today do not have return policy (at least for cash). Heck Costco, a superstore warehouse, will let you return things INDEFINITELY if you have the receipt for any reason at all. These return policies GET CUSTOMER BUSINESS.

The ELectro's distributor's policy stinks (though it is in his legal rights), so WE DO NOT HAVE TO BUY ELECTRO GEAR.

Pardon me Sos, but here are my thoughts about Electro gear:
1 - It is way overpriced in the US.
2 - Their equipment is middle of the road in hi-end audio at best.
3 - If you think the newest Electro CDP is any good at all for $5500 or so, please try the Ayre CX-7 or GamuT CDP or Musical Fidelty CDP (both sell for $3k in the US new). You will wonder why the Electro costs so much.
4 - Electro amps are powerful, but dark. There are many other amps that are LOTS HIGHER SOUND QUALITY. The list goes on and on.... starting with Ayre, GamuT, Monarchy, Audio Research, McCormick, Bel Canto... too many amp brands to list.
5 - Electro preamps are a joke. Just ask someone who has lived with one a while.

In the Hifi world there are so many choices of electronics. Dealers and distributors need to be almost extra sensative to customers needs. ESPECIALLY WHEN A CUSTOMER WILL PAY GOOD MONEY ($800) TO DO AN UPGRADE THAT I IMAGINE HAS A PART AND LABOR COST OF MAYBE $300 to $400 MAX.

But hey, it is the Distributors perogative.

It is our perogative to buy or not buy Electro gear.

KF
Sos, many of your points are well-taken. But I still contend that:

A) The distributor in this case was responsible for agreeing to the initial criteria - laid down by him - under which the customer was to bring his unit in for upgrading, and he should have followed through on that agreement as did Ernie.

B) It is ultimately EC's problem about the gray-market goods. The manufacturer and distributor must find a way to accomodate US customers who wound up with these units unknowingly, without making them into the fall guys. Remember, we aren't talking about warranty service here, but a paid upgrade. EC was never out anything for those units, and they and Mr. Warshaw are going about protecting his distributor's franchise in the wrong manner, IMO. Penalizing the Danish dealer is one thing, but penalizing US market second-hand owners is unconscionable, and I think the members' displeasure on display above is understandable.
Well, now we know the 2 sides to this story. It seems to me that those who say that EC (and the overall high-end community) needs a way to deal with the global used market) are correct. And SOS has certainly pointed out the distribution issues that the consumer does not usually know about. I guess the moral is to always check the s/n before purchasing an expensive item to verify provenance. In addition to grey market, could also be stolen. Certainly distributor should have noted that the s/n needed to be verified as legitimate import if that was his policy. Although asking does it have an s/n seems to suggest that there are issues the consumer should be aware of. Definatelly a bummer all around.
STATUS QUO:
I was telephoned by Mike at Father's and Sons (the EC dealer I arranged on Christmas Eve to purchase the mod through, at $650), and had a lengthy, friendly chat.
First, my two contacts with Mike have been nothing but accomodating, friendly, and professional. He fears a market overreaction to this unfortunate incident, and hopes that his dealership is not blamed. I agree with him....
Zaikesman, thank you for your so-well-worded synopsis....
Mike further explained the reasons for the distributor's (Alan) general policy, yet his unease with the particular decision made in my case.
He wishes to see a means created to satisfy my desire for an upgraded EMC-1 MkII, and proposed several tentative scenarios, all in the spirit of being helpful:
1.He related that Alan (the distributor) would agree to perform the upgrade/mod on my particular player for TWICE the normal retail price ($1600), so as to recoup his lost distribution-profit....
We agreed that this option is highly undesirable, due to cost and the unpleasantness involved in having to deliver the unit back and forth again to Philadelphia...only to pay $1600 for what was agreed to be a $650 mod!!
2. Mike offered to sell me an add-on EC separate DAC (which includes the sought-after modded analog board, at a healthy discount ($1500 instead of $2000). In addition to this being costly, since I would end up with TWO DACs (!), the large size of this outboard component would be unacceptable to my wife. I have no room for it inside our cabinet. Also, I'd have get more SPM interconnects. Not such a bad idea, but then I'd feel compelled to resell the unneeded 24/192 DAC, which I'd rather not do. It was only the great looks of the EMC-1 that persuaded my wife to accept its prominent visibility in our best room. Having two of them totemed together is out of the question. Nice thought, though, Mike.
3. Mike offered to sell me a NEW EMC-1 MKii with UPgrade and take my gray-market one in trade to use as a demo unit.He said he'd get back to me with a final cost today, so I agreed not to add to this thread until I heard from him. I haven't heard from him, and felt compelled to rejoin this thread as it's apparent that my presence was requested....
Mike said the cost to me would have to exceed the UPgrade cost ($650), but he didn't know yet by how much.
4. I mentioned the possibility of buying the UPgrade parts kit myself, or asking Mike to install it if I sent him the boards...or even returning the lightweight boards to EC for exchange or modding. He said the mod was extensive enough so that the dealers don't want to do it, and that in Europe the intact EMC-1s are returned to Norway for this mod. Obviously, a transatlantic trip of a 50 lb box is cost-prohibitive, so EC set up a scenario where the distributor would install said mods in North America. Mike was pretty certain that EC would support Alan in NOT modding my player. In a previous conversation, Alan suggested that I just sell the player to someone else and buy a new one. Neither Mike nor I believe that this is a prudent option,nor do I believe that Alan REALLY meant to say that.
I feel that I should restate my love for this EMC-1 MkII CDP, as many of you know via my frequent posts and discussions thereof. I also DO understand manufacturer/distributor/dealer relations as I managed such a hornet's nest myself back in the 70s and 80s in a lab equipment manufacturing/sales scenario. My policy was always to put the product first. I certainly agree that warranties can be invalidated by abnormally sold product, but that ALL PAID SUPPORT be denied (as Alan told me) seems punitive...especially in my case where NO EFFORT was made by Alan to procure the serial number of the CDP in question before my long process of delivering the unit to his doorstep. But I don't mean to churn this sour cud up again....
I certainly am chagrined to read that EC products are regarded as "mid-fi" in their homeland. Maybe that's just goes with the turf in all home markets....
I've noticed that US products in the UK sell for $=L, or about a 60% markup. Conversely, a $3200-equivalent Norwegian CDP would sell for $4800 in the US. At $5500 Alan may be gilding the lily, but that's not for me to say, as I don't know his operating margins.... As a buyer/repairer/seller of used Subarus I believe that I should be reimbursed for ALL my time involved therein, and do so at about $50/hr....
(So let's see: I've lost about 6 hours in personal time driving back and forth to Alan's house twice, plus about $5 in tolls and about $15 in gas. So that's my $315 loss so far.)
The 3rd option above may be the only tenable option as I don't believe that Alan will provide the mod unless somehow forced to by EC. I don't see that happening, although I haven't contacted them yet, per suggestion by Mike to hold off to see if something locally could be worked out.
So, back to option 3 above: What should this option cost?
I would be trading a 1.5 yr old EMC-1 MkII in PERFECT condition, with NO apparent warranty I guess, for a NEW one with the $650 mod in place. I think EC's warranty is three years (I don't remember), but I suppose that an extended warranty like that costs about $299-350 at most at a dealer when you buy a big TV or other high-ticket consumer electronics, right? So that's $650 + $350 = $1000 at most, plus probably $35 or so for insured UPS? It'd be nice if EC would pick up that $300 or so of my expense as a goodwill gesture (equals the valueof the warranty?) but I don't expect that of anyone. OTOH, it can be said that I enjoyed a discount by buying a nearly-new used unit that originated in Denmark. I too, tried to email the Danish dealer listed on the EC site, but to no avail (yet).
As has already been said, it should be no skin off EC's nose where the CDP originated, and the consensus is that the distributor in each country should support the product...perhaps NOT in honoring warranties, but CERTAINLY in offering paid-for repairs, parts and upgrade mods.
So, when Mike (or any other EC dealer) offers me a trade of a NEW modded EMC-1 for mine, how much should I expect to pay?
I need to know how to act with utmost fairness to all; I do NOT want to hurt the market presence of EC nor its distribution network (I have UTMOST respect for EC's products, and know the pains of a distributor), nor unduly extend this unfortunate messy situation longer than necessary.
Paying $1000 to swap my player for a new one seems fair (although I'm still feeling the sting of losing 1/2 of Christmas Day to this affair). That would bring my total investment up to the level of a new one with a modest discount, and I hope would be fair to all. Mike would get a demo player at $1000 less, and I'd get my mod and a warranty, and we can all put this mess behind us. EC and its ditributor wouldn't be financially penalized (or even involved!).
I would then return to blabbing to all of you how good my EMC-1 CDP sounds, suggesting that many prospective buyers consider it, etc., as I have done profusely in the past year. I don't doubt that my past comments have persuaded some to purchase new EMC-1s.
If I'm forced to go without this mod either by nonexecution (EC and Alan's decisions) or a prohibitive trade-in offer (above $1000) then I will have the choices of continuing to enjoy my CDP as-is or selling it and swapping brands; both of these scenarios would preclude my ability to laud EC and its products to others. However, I'd really like to see a win-win situation prevail (as much as that's possible), and would ask all kind thread-participants to weigh such an outcome when considering whether to buy an outstanding EMC-1 in the future.
If I don't hear from Mike, EC, Alan, or another EC dealer soon I guess I'll call Mike to hear his goodwill offer, and be very grateful if he can accomodate me.
Thanks to all for your generous comments. To those remembering my spinal injury, I'm about to have my third epidural injection Monday, and hope that it in combination with acupuncture (maybe), would allow me to use less pain-relieving medicine. In the meantime, please excuse my non-linear posts. It's hard to concentrate right now....
Happy New Year to all, and please continue to help me out with suggestions for a fair conclusion that would meet my needs and not injure any reputations nor markets. I just can't do it by myself. Gratefully, Ernie.
Well I got the upgrade price wrong in the above post:

My above post should say a $650 upgrade will probably cost the distributor about $200-300 max in parts and labor.

Anyways, I feel for you Ernie. If I were in your place I would have blown a gasket by now. And if I were living with your pain, I would probably not be able to see straight.

KF