[ajzepp]

I've been more than smitten with my 3.6s since I bought them in 2009. I realized tonight it's been a while since I've been on the official website, so I checked it out. I clicked on the page for the 1.7i and saw this:

http://www.magnepan.com/model_17

This whole "we'll pay you cash if you don't like them" campaign is distasteful and WAY beneath such a great speaker. It's more than generous that they are offering to pay return shipping on them if you aren't satisfied. I didn't know they were doing that now, and I think it's great that they are. But it should stop there.

I'm sure there are those of you who disagree with me, but as a Magnepan customer for over a decade now, this just seems uber tacky.

[sfdoddsy]

Times are tough. Obviously the old model for dealers and sales doesn't work any more. I would think anything Magnepan can do to increase sales in tough times is fair game.

I'm sure you'd rather they did this than go under like so many other manufacturers.

It wouldn't surprise me if Magnepan goes fully internet-only in the not too distant future. Look at the price difference between the direct sale MMG ($599) and the dealer-only MC1 ($850). The MC1 should be much cheaper than the MMG.

I don't find the $100 offer tacky as such. It's a bit amateurish, but so is their whole website and marketing strategy.  I just can't imagine anyone actually bothering to claim it. Much like those rebates you get offered on cameras etc.

[FullRangeMan]

I like ribbons but not only 86dB/4ohms, it require a 100W tubed amp.
Magnepan are confident in his product, the real prob here is there is
no other manufacturer doing this claim and reasonable offer. ((

[jk@home]

I would much rather them offer a 12 or 18 month free financing deal. That seals the deal for me every time. Matter of fact, that is one of the main reasons I went with a SOB (some other brand) when I upgraded from my MMGs. Could of easily gone with 1.7s. but spent the same amount of $$$, spread over 12 months, on KEFs, bought from Amazon. They were broke in before the first payment was due.

To me, full price at free financing trumps a small sale price any day. Heck, I bought my Crown Drivecore amps from Guitar Center and got 18 months financing. When I needed a third, got the close out price plus a 12 month deal.

Many moons ago, I bought my first high end amplifier, a new Aragon 8008BB, on a similar 12 month deal, from Mondial (they used a third party financing company). So I don't see why Magnepan couldn't offer this also.

[josh358]

I've been more than smitten with my 3.6s since I bought them in 2009. I realized tonight it's been a while since I've been on the official website, so I checked it out. I clicked on the page for the 1.7i and saw this:

http://www.magnepan.com/model_17

This whole "we'll pay you cash if you don't like them" campaign is distasteful and WAY beneath such a great speaker. It's more than generous that they are offering to pay return shipping on them if you aren't satisfied. I didn't know they were doing that now, and I think it's great that they are. But it should stop there.

I'm sure there are those of you who disagree with me, but as a Magnepan customer for over a decade now, this just seems uber tacky.

The problem for Magnepan is that the dealer network is smaller than it used to be. Only half the people in the country are near a dealer. And it is the sound of Maggies that sells them. So Mangepan has been looking at ways to allow/encourage people who aren't near a dealer to hear their speakers. As the offer suggests, they're confident that if that happens, they'll make the sale.

[Phil A]

The problem for Magnepan is that the dealer network is smaller than it used to be. Only half the people in the country are near a dealer. And it is the sound of Maggies that sells them. So Mangepan has been looking at ways to allow/encourage people who aren't near a dealer to hear their speakers. As the offer suggests, they're confident that if that happens, they'll make the sale.

That is so true - https://en.wikipedia.org/wiki/List_of_defunct_retailers_of_the_United_States#Electronics_stores

The above link doesn't even include most single location dealers.  The dealer model is on life support.

[ajzepp]

I would much rather them offer a 12 or 18 month free financing deal. That seals the deal for me every time. Matter of fact, that is one of the main reasons I went with a SOB (some other brand) when I upgraded from my MMGs. Could of easily gone with 1.7s. but spent the same amount of $$$, spread over 12 months, on KEFs, bought from Amazon. They were broke in before the first payment was due.

To me, full price at free financing trumps a small sale price any day. Heck, I bought my Crown Drivecore amps from Guitar Center and got 18 months financing. When I needed a third, got the close out price plus a 12 month deal.

Many moons ago, I bought my first high end amplifier, a new Aragon 8008BB, on a similar 12 month deal, from Mondial (they used a third party financing company). So I don't see why Magnepan couldn't offer this also.

That would make more sense to me...in today's economy, I would imagine doing something creative for the consumer that would allow them to more comfortably/conveniently get into a pair of speakers would be the way to go. Not that a finance dept wouldn't come w/out headaches, but I think allowing people to ease into the cost of something like higher end speakers would be far more appealing. Could even fuction as an extra profit center for Magnepan, as well.

[ajzepp]

I'm sure you'd rather they did this than go under like so many other manufacturers.

Absolutely. That goes without question. I just think this doesn't show very much creativity, and a small part of me feels like it's a bit pandering.

[Doublej]

This thread has me thinking that AudioCircle should have a circle that provides business advice to manufacturers, distributors and retailers.

[brother love]

This thread has me thinking that AudioCircle should have a circle that provides business advice to manufacturers, distributors and retailers.

 

[Joe Nelson]

...It wouldn't surprise me if Magnepan goes fully internet-only in the not too distant future...

Based on my recent experience at a Magnepan dealer, I plan to email them and encourage them in that direction.

If I ever upgrade, I would hope I can bypass the dealer entirely.

A 30-60-day in-home demo is far better than a long drive and short demo at a dealer.

[SteveFord]

There's a lot to be said for the brick and mortar stores.
How many people will pay the freight to demo a set of 3.7s or 20.7s? 

My "local" Magnepan dealer is great for demos: here's the remote, here's how you operate the gear, I'll leave you alone and have fun.
Of course, it's all part of an evil plan to suck your bank account dry by leading you straight into temptation but you probably know that already.

Their evil plan usually works as does this mail order demo.  Knowing how cheap frugal Wendell is, I'm pretty sure they haven't sent out too many $100 checks.

[josh358]

Based on my recent experience at a Magnepan dealer, I plan to email them and encourage them in that direction.

If I ever upgrade, I would hope I can bypass the dealer entirely.

A 30-60-day in-home demo is far better than a long drive and short demo at a dealer.

I think Steve hit the nail on the head -- it's hard to ship a 20.7! A 1.7 is more practical. They've even gone so far as to offer to fly people to the factory to hear the 20.7.

I think dealers vary as people do in general, we've all heard horror stories but there are other dealers who have great reputations. So I guess it's a matter of luck, depending on where you live, because the days when you could just go to the other dealer down the street are gone.

I asked Wendell once about shows, which I think are becoming more important as a product demonstration venue now that the dealer network is shrinking. But show conditions are worst of all sonically.

Add to that that small is in, and dealers say that people are buying bluetooth speakers! The days when a "stereo" had sort of a James Bond/Playboy Mansion cachet are gone and now it's all about portable audio and WAF.

All difficult issues but I think Wendell is right that the challenge is to allow people to hear properly set up Maggies, because once they do that, the sound will sell them.

[thunderbrick]

Every manufacturer already offers financing.  It's called a credit card.  Yours.

And can you IMAGINE a dissatisfied customer repacking 20.7s and having them arrive back at the factory intact???

[johzel]

Do any manufacturers offer "Lease" options on their equipment??  Works for many other industries . . . automobiles for example.  Don't know if it would work for audio or not??????

[josh358]

Every manufacturer already offers financing.  It's called a credit card.  Yours.

And can you IMAGINE a dissatisfied customer repacking 20.7s and having them arrive back at the factory intact???

it's easier to ship the customer, which is what Magnepan has offered to do.

[Joe Nelson]

IMHO, these proprietary dealer networks are good for everyone but the consumer. And may not be as beneficial to the manufacturers as they think.

I have two good local dealers, but they do not carry Magnepan. So now I am forced to find a dealer, much farther away and of unknown repute.

In the future, if I want another component which is not available locally, the scenario plays out again.

[DaveC113]

It's really hard for middle market manufacturers right now, top end is doing ok but the competition is fierce and often dealers make twice as much as the manufacturers on a sale.

The bottom end is doing ok too but are sold in big box stores that don't need to make as much margin as high end dealers.

Many businesses are noticing this lack of middle market, HuffPo just had a big article on Hershey's chocolates needing to rethink their sales strategy as value items and boutique chocolate bars are what's selling these days, not the middle of the road stuff.

Our markets are simply a reflection of society, the middle class has been shrinking and their purchasing power has been reduced by a very significant degree, and now folks who make middle market products are suffering as well.

[Phil A]

IMHO, these proprietary dealer networks are good for everyone but the consumer. And may not be as beneficial to the manufacturers as they think.

I have two good local dealers, but they do not carry Magnepan. So now I am forced to find a dealer, much farther away and of unknown repute.

In the future, if I want another component which is not available locally, the scenario plays out again.

That's why at this point, I've given up on products carried by local dealers.  There is one (not counting something like Best Buy's Magnolia which is about a dozen miles from me) real audio store within 40+ or so miles from where I currently live.  They are open 3 days a week and it is not a huge store (I have more systems in my house).  There's probably a couple things in the store (no Maggies) that I certainly would find likeable sound quality wise, but there are alternatives on direct to consumer sales.  The question becomes how much value added does the local dealer provide in the event of an issue.  If one buys a well built product from a reputable direct to consumer company for me the answer is that the local dealer provides almost no added value.

[josh358]

It's really hard for middle market manufacturers right now, top end is doing ok but the competition is fierce and often dealers make twice as much as the manufacturers on a sale.

The bottom end is doing ok too but are sold in big box stores that don't need to make as much margin as high end dealers.

Many businesses are noticing this lack of middle market, HuffPo just had a big article on Hershey's chocolates needing to rethink their sales strategy as value items and boutique chocolate bars are what's selling these days, not the middle of the road stuff.

Our markets are simply a reflection of society, the middle class has been shrinking and their purchasing power has been reduced by a very significant degree, and now folks who make middle market products are suffering as well.

Yes, there's a lot of pressure to move upmarket. Magnepan has fortunately resisted this, they don't want to lose their reputation as a value manufacturer, and as a mass manufacturer they also aren't really suited to the high end, with its low volume boutique products. Not that I don't think there's room for a higher end (but still very high bang for the buck) model in their lineup, e.g., a new Tympani.