RMAF Debate....

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Danny Richie

RMAF Debate....
« on: 16 Apr 2014, 10:56 pm »
I am really having mixed feelings about going to RMAF again this year.

I have been every year and some years had product in as many as six rooms at a time. I have had small rooms and for the last few years a big room. And our room consistently wins best sound at the show honors from reviewers and show goers. RMAF has been great for us and has been very profitable in the past.

Things have changed in the economy though. Everyone knows things have tightened up and most US audio companies are down big numbers unless they are exporting a lot of product overseas. The US market has just been really going through changes.

As things have tightened up and people are just not spending money, and the middle of the market has been going away. There is still some movement in the extreme high end of the market as there will also be the super wealthy. And there is some movement in the budget end of the market and a real peak in value oriented items. The headphone market has grown some too. But the market as a whole is way down.

Fortunately we have still been doing really well. But what is really driving our sales are lower priced value based kits, parts, drivers and servo subs. People don't want to spend a lot of money but they still want to play and have fun. So we have been really good at nailing those niches and providing high value and high performance based designs that people can afford.

So if I go to RMAF with the products that are really selling well for us then it might further our position in that area of the market some, but we have to sell a lot of inexpensive kits to cover the cost of going to RMAF. We spend on average about $5,500 going to the show and that's with other vendors kicking in for some of the room cost. And we won't exactly blow everyone away with a modest or budget based system that showcases what we sell the most.

But if I take something over the top like I did last year then I hit everyone' s best sounding rooms list. And last years $39,000 open baffle line sources for Mockingbird Audio made it pretty easy. They were incredible. They were tough to transport and set up though and they didn't even fit in the elevators. We had to carry those big heavy 7 foot tall line sources up 2 flights of stairs to the 2nd floor that is really the third floor since the Mezzanine floor isn't counted. And while everyone loved and praised the great speakers and system driving them, no one was buying in those price ranges.

It's really not profitable for me to go, but everyone expects to see me go.... In a way I hate to not be there. Lots of good people to see again. But it also really wears me out. And from a business standpoint it doesn't make a lot of sense.

It also seems odd because most companies quit going because business is down and they aren't doing well. For us business is up and we are doing well. So I don't want to send the wrong message.

I haven't ruled out going this year, but have not pulled the trigger yet on the room reservation, and it is trigger pulling time. So I am really thinking this over.

Feedback is welcome.

Rocket_Ronny

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Re: RMAF Debate....
« Reply #1 on: 16 Apr 2014, 11:10 pm »

Offer some of your better, modest, speakers to be used in someone's room.

Rocket_Ronny

jcotner

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Re: RMAF Debate....
« Reply #2 on: 16 Apr 2014, 11:11 pm »
How about RMAF lite?
Don't take the big speakers, don't take the big blue Dodd's.
Take a couple of you best little speakers and co-op some
space with somebody. Fill up the trailer with kits you might
turn and sell them out the back or something.
Maybe it undermines the show, but in a way it give a lot
of us a different reason to go.
I think most folks would rather see you there in a reduced
presence, than not at all.
Plenty of other feedback on this to come I'm sure.  :D

jtwrace

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Re: RMAF Debate....
« Reply #3 on: 17 Apr 2014, 12:04 am »
And while everyone loved and praised the great speakers and system driving them, no one was buying in those price ranges.
Quote
I will respectfully disagree on this.  I know for fact that high end $30k+ speakers are selling.  I think the issue is a bit deeper.  You are known for diy speakers at reaasonable prices.  It's VERY hard to show up one year with very expensive gear.  OK, now you will say "they are for MockingBird Audio".  Great, who and where was MockingBird Audio?  If you design them, then design them and be there as the designer not the guy doing everything.  At $39k you have stiff competition regardless how good you think what you do sounds.  You're not buying them.  Also, look around what your competition is using for electronics.  Again, you might think what you use is the best, fact is, someone who is buying $39k speakers are not going to use what you're using.  No disrespect but that level requires a whole different league whether it really is better or not.  If you're getting all the press and nobody is buying there is a massive flaw in the model. 

My sugestion would be to get a small room and setup some N3S and blow the freakin' doors off.  Those speakers rock and can surprise people.  Bring tons of stock and blow 'em out the door.  Maybe an N3S setup which can easily be transported and a few subs that can be turned on/off depending on the listener.  Of course you will have Rythmik kits to sell too and Ninja to help with customers who can't build their own crossover.  Perhaps you will have the campaign running at the same time and use the show as advertising too.  Don't forget, not all audiphiles search online.   :thumb:
« Last Edit: 17 Apr 2014, 03:40 pm by jtwrace »

Danny Richie

Re: RMAF Debate....
« Reply #4 on: 17 Apr 2014, 12:19 am »
Thanks for the feedback Jason,

The owner of Mockingbird Audio was there in the room all weekend. Sorry you didn't get to meet him.

Accolades for best sound at the show "cost no object" spoke well for everything in the room last year especially since the electronics were not at all expensive.  But you are correct in that the elite of the industry want to see speakers of that caliber shown with cost no object priced gear and not necessary the best sounding gear despite its cost. Reception sells the big ticket items more often than anything else.

And my feel for what is selling right now doesn't really come from last years RMAF show. My feedback comes from other manufacturers and what the few stores that are left are buying or not buying. And where companies are or are not shipping product, plus the price points of what is really moving and what is not. I get some fairly solid insider feedback on the market from other companies.

Thanks again for your feedback though. I am considering a smaller showing for sure. Just wondering what others will think.

jtwrace

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Re: RMAF Debate....
« Reply #5 on: 17 Apr 2014, 12:24 am »
Thanks for the feedback Jason,

The owner of Mockingbird Audio was there in the room all weekend. Sorry you didn't get to meet him.
Exactly my point!  He should be the front while you set them up and tweak everything and then sit back and view other rooms and answer technical quesitons. 


Quote
Accolades for best sound at the show "cost no object" spoke well for everything in the room last year especially since the electronics were not at all expensive.  But you are correct in that the elite of the industry want to see speakers of that caliber shown with cost no object priced gear and not necessary the best sounding gear despite its cost. Reception sells the big ticket items more often than anything else.
Yes, I'm not debating whether what you used it good or not, it's mostly perception at that level.

Quote
Thanks again for your feedback though. I am considering a smaller showing for sure. Just wondering what others will think.
Understood.   :thumb:

Early B.

Re: RMAF Debate....
« Reply #6 on: 17 Apr 2014, 12:32 am »
Danny -- the question I have is whether or not RMAF is basically a marketing and PR expense for you, not a direct money maker. In other words, what other benefits, if any, do you receive from participating? Is there any value in attending, but not showcasing your speakers? Can you drum up support for the sale of GR Research while you're there?

I'm just trying to think outside the box to see if there are any other benefits in attending that may pay off later.   

Rocket_Ronny

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Re: RMAF Debate....
« Reply #7 on: 17 Apr 2014, 12:37 am »

Buy a white van and set up shop across the street. Or mix it up and use a yellow Corvette.  8)

Rocket_Ronny

SoCalWJS

Re: RMAF Debate....
« Reply #8 on: 17 Apr 2014, 12:56 am »
How about going in with a different game plan?

Reserve a smaller room (I ASSUME it costs less) and have a variety of your smaller speakers on hand and rotate through them regularly. Take a pair of LGK's and a variety of woofers (OB's and sealed servos). Have a schedule of when what will be hooked up posted inside and outside of the room. Have a sample of whatever your best selling kit(s) is/are about a month before the show. Run them with and w/o the various subs. (I think you should really push the OB Subs for music systems to show how well they work and can match up with smaller speakers).

I can understand that at this point, with a possible ownership change coming as well as the other considerations with the "old gang" that you are reluctant. It's a whole bunch of work with dubious benefits.

I'm sure you'll make the right choice after giving it full consideration. Good Luck Danny!  :thumb:

HT cOz

Re: RMAF Debate....
« Reply #9 on: 17 Apr 2014, 12:58 am »
I think the answer is to build something modest but new.  How about an O3 type design with integrated 8" OB bass?  That should sound great.  Maybe part of your problem is that now you have achieved best of show cost is no object you don't the same passion to do anything it takes to win. 

jparkhur

Re: RMAF Debate....
« Reply #10 on: 17 Apr 2014, 02:19 am »
To me LSAF was a benefit to build more and thus sell more of your drivers.  The connection to the company and of the alternate activities were a good thing in my mathematical eyes for both sides. It may not be a super seven, but I've sold more than 8 pairs of super v's, 32 or more subs, 16 pairs of n3s, and countless other things.  This of course would not of happened without a good product but the interaction. Even though not a giant money maker, is actually good for you- and your other companies you co exhibit with.  I was thinking of going to LSAF and doing a room with Dodd front end, pi stuff and a choice of speakers from gr, but with the lack of interest it does not seem worth it to travel 1600 miles and pay 1200 dollars for rooms food and eating chicken with TT and Dave.  Ok, I would do the last one no matter what ;).  Your products and your consumers sell product even when you are not around. Take me for instance: one random hit to a we page and a pair of N3 S later- dozens and dozens of new GR customers.  That's money. 

Now as the economics professor talks, it's supply and demand and overhead costs that run the money show, I get it.  Presence with just a couple tube amps and some random speakers in a smaller room would be great.  Maybe others use your stuff in their rooms, GR speakers with Peachtree Tubes. 

There is value in these, how much is known only to you.  With the changes to the business coming and your choice of life directions- none of us can guide you, it's up to you to step in the direction of the future. 

Hey.  I'm just a Texan living in Wisconsin, couple BS's, couple Masters degrees and a PhD that I don't want to finish.  You will make the right choice, I know. 

WGH

Re: RMAF Debate....
« Reply #11 on: 17 Apr 2014, 03:26 am »
How about a system everyone can start with like 2 of your small popular affordable speakers?

And then add something they can buy later, like 4 servo subs. The demo would be educational too:
1 sub - nice
4 servo subs - room nodes disappear and everyone can still have fun with your low, low bass demos.

Pairing affordable electronics with the small speakers would be the hardest part, I have heard many a demo go bad with well intentioned but poorly matched components.

Wayne 

bdp24

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Re: RMAF Debate....
« Reply #12 on: 17 Apr 2014, 05:54 am »
I believe there is a potential demand for your subs, both OB and sealed, to Magnetic Planar and ESL speaker owners who haven't yet found out about them. Even when they do find out (I've been singing it's praises over on the Rythmik forum), they cross them off their list because they can't or don't want to build boxes for them. How about displaying with one (or two?) of the GR cabinet makers, you with the drivers and amps, he with flat packs and fully assembled and finished cabs. Do a demo with a GR OB speaker (or a pair of Maggies, though it would be very understandable if you wouldn't want to do that!), with and without OB subs, and sealed subs, and rear reverse-phase subs. Let panel speaker owners (and there are a LOT of them) see what their system could sound like with a GR subwoofer or four. If you could get Brian to join you, let him give a talk and demonstration of the Servo system. There's a huge untapped market, I tell 'ya!

Captainhemo

Re: RMAF Debate....
« Reply #13 on: 17 Apr 2014, 06:03 am »
How about a system everyone can start with like 2 of your small popular affordable speakers?

And then add something they can buy later, like 4 servo subs. The demo would be educational too:
1 sub - nice
4 servo subs - room nodes disappear and everyone can still have fun with your low, low bass demos.

Pairing affordable electronics with the small speakers would be the hardest part, I have heard many a demo go bad with well intentioned but poorly matched components.

Wayne

That is a pretty good idea.  Also depending on  how far along you  and  the Ninjas are,   you guys might want to have  a couple pairs of each of the speakers you decide to show, one pair stock, one pair upgraed with Ninja c/o's to  show what upgrading can do.   
Also not sure where  you'll be with any of the new kits you were working on,  but something  showcasing the new M165NQ driver  and / or the 8" servo subs would be cool.
If the usual crew (TWL and PI Audio)  as well as   the Ninja's and yourself all went in  on a small room,  I'd think it  would help bring  your costs down somewhat  (althogh I am not sure how much difference there is  in rooms).

I realize it would probably  really feel like you were taking a step  back as you've had such success  at RMAF  showcasing some pretty  high end  speakers, especially  the  OB LS's  for Mocking bird  last  year and the Super 7's for Serenity  the year previous.
Maybe instead of going in looking  for best sounding room , cost no object,  you  could go in  with the intent of showing  you can do it at  different price points as well.   Show the  average guy tht he /she  can also enjoy great audio  without  "breaking the bank".

I believe up until the past couple years yo had been showing  your kits at RMAF so  yo  must have a pretty good idea  of how  showing them   translated  to increases in sales.  Maybe looking abck at  some of the past shows  and how  they worked/didn't work for you  can help you make a decision  in deciding   if yo thin k attending and  downsizing  the room would  be profitable

-jay

Hank

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Re: RMAF Debate....
« Reply #14 on: 17 Apr 2014, 10:45 am »
"Reserve a smaller room (I ASSUME it costs less) and have a variety of your smaller speakers on hand and rotate through them regularly. Take a pair of LGK's and a variety of woofers (OB's and sealed servos). Have a schedule of when what will be hooked up posted inside and outside of the room."
+1
Danny, recalibrate.  The expense and hassle of transporting and setting up the high end speakers has likely not increased your sales.  Trade shows are for displaying products that a particular show's attendees are in the market for.  I know this stuff, after 34 years in electronics manufacturing, having been an attendee and exhibitor at CES and InfoComm and other trade shows.  Take your best finished kits and rotate as SoCalWJS suggested above.  Also have a supply of those kits to sell and include a flyer with your flatpack suppliers' contact information with every kit.  Also, do a Swarm of 4 OB servo subs - I think that will be so impressive that it will increase sales.
My 1 1/2 cents.

woodsyi

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Re: RMAF Debate....
« Reply #15 on: 17 Apr 2014, 11:58 am »
Is the show a place for you to sell or is it a place where you promote your products?

Would folks buy your "lesser" product with confidence if you didn't also make state of the art speakers?  Would the perception of value be there with your money making products if you didn't also make state of the art speakers?  Isn't there an inherent belief in the value seeking crowd that they are getting the same uber technology, albeit trickled down and without frills, at a great price in your modestly priced items? If you didn't have award winning uber products associated with your name, would the lesser priced items sell as well? 

Just asking.

Rocket_Ronny

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Re: RMAF Debate....
« Reply #16 on: 17 Apr 2014, 12:30 pm »

Go every other year and cut your costs by half. Then the crew will know when you are going there.

Rocket_Ronny

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Re: RMAF Debate....
« Reply #17 on: 17 Apr 2014, 01:09 pm »
Danny: I don't know nuthin' about no marketing. I write books and don't know how to sell them (yet). But it seems to me that in this age of no storefronts, you need to have some way of getting physical contact among you, your products and your customers. Internet pictures just don't do it. I would not have ordered your LS-9 kit (and hired Ruben to build the cabinets) had I not heard them at RMAF. Plus (now don't go all blushy on me) you radiate charm, enthusiasm, expertise and integrity and those qualities (assets, really) help give people confidence in your products. One of the main reasons I go to RMAF and CES is to connect with the present and maybe future manufacturers of my stuff. By talking to the guys like you, I have both bought new stuff and made numerous upgrades to the stuff I already have. (I never get rid of my boxes.)

Besides, it's just fun to see you and Chris at the show.

Jparkhur: I too am a displaced Texan with multiple degrees, including a DPA. Remember the old adage: "The only bad dissertation is the one that doesn't get done." Pick a topic that you can actually finish in a reasonable length of time. I actually wrote mine (after I got all the data together) in about three months. A world changer? Nah! But it met the requirement and I have the same degree as everyone else that struggled over the damned thing for years. Good luck!


nickd

Re: RMAF Debate....
« Reply #18 on: 17 Apr 2014, 03:24 pm »
I agree with Throwback. There is no substitute for face time with customers.

It is a brave new world indeed. Getting plugged into the Elite market takes years of manufacturing at that level, lots of advertising $$$ and the related magazine reviews. The broad US market has some issues that no product, no matter how good, can totally overcome.

You make great sounding stuff. Put together a nice 2.1 setup in a smaller room shared with others. Hopefully a well known brand to help draw (Peachtree is a great idea JP). Keep your name out there. Introduce more people to your sound and keep up the good work.


SlushPuppy

Re: RMAF Debate....
« Reply #19 on: 17 Apr 2014, 06:09 pm »
Two loudspeakers I would like to see at a show would be the X-Otica and the Serenity Acoustics Super Mini. Both still in the design phase from what I understand. X-Otica could be set-up with real-world electronics and the Super Mini with true state of the art gear.