Ar9Jim 4,061 Posted May 7 Share Posted May 7 (edited) This is a great question that is asked often. There are many reasons that we would like to share. 1) Value added processes - Customer value. When you get down to the fundamentals, a happy customer is our goal. It's the customers money being exchanged. The customers deserve value regardless of income level. 2) The dealer/rep based model is extremely expensive. Often when you buy a product from a dealer, the dealer receives up to 1/2 of the retail price. In other words, less than 1/2 of the retail price goes into producing the product you are receiving . 3) Few dealers offer service. The service falls on the manufacturer. The support once offered by dealers is mostly history, reducing the value added by their part of the process. 4) Some dealers undercut others with their margins, effectively devaluing the product. This undercutting results in a race to the bottom. Some on-line dealers undercut the brick and mortar using the lower overhead advantage. 5) The top 3 dealers that sold 80% of the product, were all on-line dealers, not brick and mortar. I was one of them (although Carver dedicated), and closed my store when accepting this position with Bob Carver. We can market our products on-line ourselves. 6) The customer experiencing our products in their home, often compared to others of higher cost, is an advantage for Bob's designs. Bob knows how to design what sounds good, and designs for synergy with a wide range of products. Head to head we are tough to beat. Selling direct is in our favor. In the customers home, as part of their system, is the true test for an audio products actual value to the customer. Summary: We can spend considerably more money building excellent products, that offer much greater value to the customer. Leveraging technology throughout the entire process that is Bob Carver Company, provides for excellent products at about 1/2 the price of the obsolete rep and dealer networks. The customer wins and the company wins. It's better to hear audio gear at home. This is why we sell direct. It provides for much greater customer value and also provides more control of our destiny. It may be worth considering the business models of companies you buy from. Is the dealer adding 50% to the value of your purchase, or should you look at who sells direct and is possibly putting that 50% into the product you receive? Just a thought in a fast changing market. Jim Clark Director of Operations Bob Carver Company. Edited May 8 by Ar9Jim 4 2 Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now