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
Ernie,

What a pain in the Ace! Everything has already been said but since this is not a warranty issue, why not do it. Used, grey market so what. Solve the customers problem and this big mess would not have been debated on the Gon.

BTW, Ernie and I emailed recently about the EMC-1, I will not be buying one either. Sorry Ernie, I would be out of business if my company did not resolve our customer issues no matter what, period. Looks to me like they missed the opportunity to turn a negative from a customer into a positve. Imagine that. Oh yeah, bought a used Pass Labs X-1 preamp here on the Gon a few weeks ago and Pass sent me a shorter connection cord that goes between the pre and power supply for free. Too bad they don't make CD players.

Now, hows that Ayre sound again!!

Sean is still reading my mind, just a little more bluntly. While I appreciate Sos' efforts to come into the discussion with a different perspective, I continue to find their focus on the issue of warranties to be somewhat off-topic. Obviously, almost everyone reading on this forum will be copacetic with the idea of buying used, and that usually means no warranty. In Ernie's case, the supposed fact that his unit may have originally been gray-market shouldn't have had any impact on the situation, since as a second-hand owner he wasn't seeking warranty service anyway.

I don't think anybody could really argue with a manufacturer who stated a policy saying that products not purchased through their domestic authorized dealer network would be ineligible for normal warranty service by that market's distributor. There should certainly be a provision for offering paid non-warranty service however, and maybe even a discounted rate for paid in-warranty service offered to original owners of merchandise bought from non-domestic authorized dealers (gray-market). Whether or not to offer transferrable warranties to second-hand owners is a separate question, but again I don't think anyone would balk if a company stated that such a policy could not be extended to second-hand purchasers of gray-market units, or at least not without some sort of discounted rate or reinstatement fee being charged. But again, that's not the issue here.

I think that pretty much this whole participating forum has agreed that:

A) In this case the distributor did not do right by the customer in Mr. Warshaw's handling of Ernie's situation.

B) Ernie ought to be able to purchase this upgrade, at the very least, for the regular full-boat price and no more. He quite possibly should even get it at the discounted price he originally arranged to have it done for, since no one (that is, neither the dealer nor the distributor) thought to check for the gray-market eventuality prior to agreeing on Ernie's price and course of action. But even if Ernie doesn't ulimately get the discounted rate, he certainly shouldn't have to pay to ship his player anywhere, simply by virture of the distributor's mishandling of the process so far.

To sum up, what Ernie and we (and F&S) are going to find out, is whether EC and their US representative place the customer's interests first, or not. So far, their policies seem to indicate that they even put their unscrupulous Danish dealer's interests ahead of those of the customer, but we shall see. Regardless, Mr. Warshaw's actions heretofore clearly indicate that he puts his own interests ahead of the customer's. As for the issue of whether Ernie ought to defer to F&S, as the dealer involved, in interceding on his behalf with the distributor and manufacturer, I respectfully submit that the situation has already gone too far for them to be his best advocate. Ernie's dealing has really been more with the distributor than with the dealer; Mr. Warshaw has already superceded F&S's wishes and authority in this matter, and only EC themselves can effect a remedy, barring a change of heart on Mr. Warshaw's part. While F&S's efforts are both necessary and reassuring - and should be continued - regardless of whether or not they are successful in persuading Mr. Warshaw to reverse course, I think Ernie should let them know that he will be contacting EC personally about what has transpired up 'til now, as is his perfect right (and duty, IMO). As has been stated, and is evident to anyone reading, this question as it regards EC in America is now (and in truth must have been before) an issue bigger than one second-hand customer's upgrade trials and tribulations.
I think there are good reasons why some companies products continue to do well on the used and new market.

Companies such as Ayre, Krell, Mark Levinson, Magnapan, Sonic Frontiers/Anthem, Pass, Plinius and GamuT (these I (and friends) have had wonderful dealings with) really stand behind their products. Many times they will even stand behind products that are out of warranty and not even owned by the original owner. I have several stories that I may tell later in this thread.

It is such a better business decision to support your products wherether they be new, used, or even grey market. The manufacturer made the product and they should offer the various upgrades and product support to anyone who owns their products. The grey market issue is a problem best resolved at the manufacturer and dealer level. Most of the time it is not that terribly hard to fix.

As Audiophiles we should support companies that stand behind all of their products. And not companies/distributors that play games with their customers. The world is becoming a global economy. Companies need to rethink their pricing strategy to accomodate the global economy.

KF
I can't help but think, that even though this isn't a "warranty" issue, it could still have the same ramifications. Considering Ernie was willing to pay full price for a new product/service, it doesn't seem that far fetched to think that if Ernies player was in need of repair, he would have been denied that service too. As such, why would anybody buy Electrocompaniet gear used, knowing the risks involved. Knowing that Electrocompaniet carrries less value on the used market certainly would make it less appealling as a new purchase as well. You might end up marrying the damn thing, till death due you part (with little chance of resurrection). This is a digital piece to boot. Digital items usually have the shortest shelf life and quickest depreciation in the business, as evidenced by the "upgrade" sought here. Why would any customer want to do business with a dealer whose customer service is limited by his middle men. Why would any dealer want to do business with middlemen that prevents sales (the upgrade) and compromises customer relations. Why would any manufacturer want to do business with middle men that negatively effects profits for them. I have two suggestions. One, see if the "Danish" dealer can help. Two, contact Electrocompaniet and give them the opportunity to salvage their U.S. business. I suspect the middle man was entrusted to sell Electrocomaniet products, not to prevent the sales of Electrocompaniet products. Nothing personal, but this distributor isn't coordinating anything for the benefit of anyone, except his own parasitic ass. Imagine you bought a used car from your uncle or anybody else for that matter. Now imagine you go to the new car dealer for a part for this car and the new car dealer tells you, your denied because you didn't purchase the car through his prefered network. This is absurd! I'm sure Thiel (for one) wouldn't leave their good name and good customers out to dry like this.
Zaikes, you must be a professional mediator! Thanks again.
While you were typing I finally thought it prudent (at 6pm in Boston) to finally ask EC for help. As I have always been a champion of Per Abrahamson's design mindset and execution, and he still appears to be the managing director, I tried to email directly to him through the service dept link at EC's site (it's also the only one I could find, so I hope it gets to him reasonably soon).
So that there is NO confusion here or elsewhere, herein is an exact copy of my missive:
Dear Per,
Greetings! I am the proud owner of an EMC-1 MkII (mid 2001 production) but have had an unfortunate experience attempting to seek the latest modification. PLEASE READ the Audiogon.com thread entitled "HELP Electrocompaniet Stole Christmas" for all the details.
I bought a nearly-new unit here in the US, that now seems to have originated from a dealer in Denmark. I am NOT a good typist, so it's better if you just read the thread for all the details....
I have VERY OFTEN praised this CDP in the past 1.5 years, resulting in further sales of this excellent player. I still DO wish to keep my beloved EMC-1, but would like to buy the added parts mod at a fair price, and best if I don't have to risk the expense and damage from shipping a long distance....
Please help me in any way that you can, and perhaps become aware of the difficulties now apparent in the US distribution and support of this product. My intention was only to get advice on how to proceed, but it seems that a larger discussion ensues....
Thank you very much for your time and consideration. I hope to remain an EC champion!
Cheers.
Ernie Meunier
(my home address and telephone)

So that's it. Hope it helps. I also sent a short message to Heinz Preiss in hopes that he can possibly mod the boards if I dare remove the cover, extricate them, and send them down to Florida. I really don't want to send a 50lb package by mail to Florida, nevermind PA (that's what started this in the first place)....

I buy/service/sell used Subarus. I LOVE meeting people's needs. A great majority of the time I'm successful, for which I'm grateful. I attribute it to an excellent product, thorough repair execution, a lowish price, and being an excellent listener. I'm told I'm warm and fuzzy...yet I understand that we all can't be. That's sometimes why some of us operate best as efficient middlemen (like being a manufacturer's distributor. Lots of auto wholesalers tell me they'll NEVER go back to retail. Different personalities gravitate toward different functions. I understand that....

I've now started making DIY PCs for cheap, and understand what working for minimum wage is again, too! Forgot all about sufficient margins required to market a product. Ha! A prior career in laboratory equipment entailed wearing all the hats simultaneously of a manufacturer/QA director/distributor and service manager, and thus understand the difficulties inherent in these relationships.
I made mistakes, and often had to iron out disturbances involving dealers, a direct sales force AND a direct mail marketing campaign. You can imagine the conflicting priorities. Phew...glad that was back in the wild 'n wooly 70s and 80s....
So now I AM the customer, who was handled generously by a dealer, but not by his distributor. So yes, maybe the manufacturer has to weigh in to put out a little fire (and perhaps prevent a bigger one). Hence my request to you all for direction and support. I can't imagine what exactly to ask for, as it's now apparent that solving my problem might entail establishing policy for all similar situations extant. I hope there's a silver lining in this for ALL, and remain greatly appreciative of all efforts to reach one.
ERN
PS It's interesting to me that I have only listened to music on my system once upon my return...to verify no travel damage. Hope I'm no longer deterred by this mess. That would be tragic....