Hi Tim
I dont think a brick and mortar established dealer network is the way to go either. As you correctly point out, it takes significant investment. I doubt it will produce a significant enough increase in sales to cover the costs and even when finances is available and cost could be covered, cutting cost is always a good idea.
I was thinking more down the lines of an informal reference based system. The model I normally use to explain is that of a small builder. (I used to deal with small business loans some time ago and spent countless hours advising the business owners) Rather than having to build a spec house, pool, roof, deck etc., a builder can refer prospective clients to jobs he has done. I recently had my driveway paved and had a look at couple of jobs in the neighborhood before choosing the builder. A simple but very effective what to demonstrate your products and services.
There is a tremendous amount of goodwill in the audio community, so I am sure there will not be a shortage of folks who would participate. Their benefit would be a closer relationship with the manufacturer, and the prospective buyer has the benefit of talking to a real owner rather than a pushy salesman. I have been invited into homes to look at both DIY speakers and amps, so I have no doubts this model would for a TT manufacturer also.
In short, there is more than one way to skin a cat. I am somewhat surprised at some of the responses I saw on the thread. It seems taking a risk is worn as a badge of honor.
As for trade-offs and the costs. Distribution channels and the convenience thereof has cost associated to them, that is true. So has machine tools and R&D. So to minimize cost, I chose a product where the sunk cost of R&D and machine tools were already written off, and not factored in the price.
I agree Teres is a successful enterprise and I wish them all the best. Hopefully one day I will have the opportunity to audition some of their products in the Philly/DC area.
Regards
Paul
I dont think a brick and mortar established dealer network is the way to go either. As you correctly point out, it takes significant investment. I doubt it will produce a significant enough increase in sales to cover the costs and even when finances is available and cost could be covered, cutting cost is always a good idea.
I was thinking more down the lines of an informal reference based system. The model I normally use to explain is that of a small builder. (I used to deal with small business loans some time ago and spent countless hours advising the business owners) Rather than having to build a spec house, pool, roof, deck etc., a builder can refer prospective clients to jobs he has done. I recently had my driveway paved and had a look at couple of jobs in the neighborhood before choosing the builder. A simple but very effective what to demonstrate your products and services.
There is a tremendous amount of goodwill in the audio community, so I am sure there will not be a shortage of folks who would participate. Their benefit would be a closer relationship with the manufacturer, and the prospective buyer has the benefit of talking to a real owner rather than a pushy salesman. I have been invited into homes to look at both DIY speakers and amps, so I have no doubts this model would for a TT manufacturer also.
In short, there is more than one way to skin a cat. I am somewhat surprised at some of the responses I saw on the thread. It seems taking a risk is worn as a badge of honor.
As for trade-offs and the costs. Distribution channels and the convenience thereof has cost associated to them, that is true. So has machine tools and R&D. So to minimize cost, I chose a product where the sunk cost of R&D and machine tools were already written off, and not factored in the price.
I agree Teres is a successful enterprise and I wish them all the best. Hopefully one day I will have the opportunity to audition some of their products in the Philly/DC area.
Regards
Paul