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Business Ethics in the Audio Industry

I wonder if anyone else has run into problems with audio manufacturer/retailers that raise ethical (if not legal) issues. In mid-April, I ordered a Schiit Freya on Schiit's website and authorized credit card payment. The website said that shipment would be delayed until April 30th. After that, I received another email message from Schiit saying shipment would be delayed until May 15. I made one further inquiry after that, and Schiit responded that I would have to wait a little longer. Then, just yesterday, I received a message from Schiit saying that the Freya had been replaced by two new models, and I could choose between them. Either way, I'd have to pay $100 to $200 more than for the Freya I had ordered in mid-April.

Before yesterday, there was no sign on Schiit's website or anywhere else that the Freya was being discontinued in favor of the new model (with two options). Nor did any of the email messages I received from Schiit indicate that the Freya was being discontinued and that I would have to pay more than previously agreed for what I had ordered. The messages only ever referred to shipping delays.

Do you consider this a fair business practice on the part of Schiit? I feel like it's a bait-and-switch, which they tried to justify by noting that my credit card charge was reimbursed three days after the initial order, as per company policy. But I assumed that was only because of the delay in shipping, and that the card would be charged once shipping occurred. I don't know whether this rises to fraudulent misrepresentation, but it certainly seems to amount to a dishonest business practice. I'd be interested to hear what others think about this.
dancole
nonoise's avatar
nonoise
10,947 posts
 
I don't think it's a bait and switch that you're being subjected to. Just bad timing. The fact that your card was reimbursed is a good thing.

Announcements of new product happens when it happens, and not a moment sooner. With all that goes on in a small company, one can overlook an order and leave it sitting as there are far bigger fish to fry when a new product is going through the final phases before being sold.

One scenario could have been to have two different lines running at the same time until it came down to exhausting existing stock or upgrading everything all at once.

Your card was reimbursed and they've given you the option of buying an even better version for a bit more. There's not much else they can do.

All the best,
Nonoise
ebm
9,311 posts
 
Cancel your order if this co is so bad buy something else from a good company.Keep on trucking!!
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cleeds
6,030 posts
 
dancole
Do you consider this a fair business practice on the part of Schiit? I feel like it’s a bait-and-switch ...
No, I do not consider this a fair practice and it has more than a whiff of "bait-and-switch," even if it was inadvertent. If the company really wanted to do the right thing by you, it would have honored the price it quoted you.

I’d walk away from any business that works this way, even though the behavior really doesn’t rise to the level of fraud, imo.

jetter
3,056 posts
 
I understand what you are saying about the delay and all.  Not a Schitt fanboy but do think they are a honest company.

Truthfully, if it was me I would be glad it all happened as it did and would order the new freya + for the extra money.  But that's just the way I look at it, no reason you should agree.
ghasley
2,507 posts
 
I believe they actually acted more ethically than is typical. Let me take the conversation a step further to explain why. First of all, they don't owe you anything upfront and they refunded your money promptly. That could have been the end of it. But what if they had shipped you the original Freya on the day you ordered it on or about April 15 and then announced on May 28 a new and upgraded version. How would you feel today? Would you have felt like your new preamp came with it the implicit promise of being a current model in their product line for a period of time? Who decides that?

While I have no idea whatsoever your original desires for a preamp spec wise but let's say, for the sake of argument, that you only wanted the Freya for the balanced ins/outs and for the jfet and passive stages and did not care at all about the tube stage. Would you have been torqued over the fact that the new Freya S would have saved you $100? In my opinion, they did you a huge favor and they actually saved you money in the event you would have chosen to upgrade to the new Freya + model and left you to sell your 45 day old Freya. 

I don't know you and you don't know me so I'm not trying to impose my beliefs of value and fairness on you but you may be over-reacting ever so slightly. People throw around the term "unethical" when that can really harm someone. Think about it for a moment. They chose NOT to take your money when they sure could have and shipped you a product that was about to be discontinued/replaced in the lineup. They did so promptly and without prompting or you having to ask. They couldn't very well tell you why because, short of an enforceable non-disclosure agreement, your silence couldn't be guaranteed. It was a $750ish product that is now either $600 or $900. You get to choose how you want to go forward...where is the harm to you?
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