[jsalk]

Sorry for the overly long post, but I thought I'd pass along information on recent events here at Salk Sound.

As you may recall, when the government started handing out Covid relief funds, we were literally inundated with orders.  So many orders, in fact, it took us a year to fulfill some of them.  We just couldn't ramp up production enough to address the situation and build times and, as a result, became very long. I am glad to report that we have worked through our backlog and build times have returned to normal.

But it wasn't just build times that suffered.  We took all those additional orders based on pricing that existed at the time.  Unfortunately, by the time we completed most of these projects, parts costs had gone up significantly.  Over the years, we have always tried to set our margins as low as possible.  But those increased costs ate up all the margin on these projects and more. It was not a good time from a financial point of view.  But we felt our customers deserved to get the speakers they desired at the price they and we originallly agreed to.

Fortunately, most all of that is behind us now and things have returned to normal.  Which leads me to the second related topic. 

As has been discussed here a few times, people suggested we work on a succession plan.  Unfortunately, no one in our family and no close relatives are interested in audio (which would certainly be a requirement).  Over the past year or so, we have been approached by individuals who expressed interest in purchasing the company.  Since you can't run a business like this remotely, those discussions didn't end up going anywhere.

Then, we were recently approached by two individuals who are quite interested in taking over the operations.  They are Dan and Kerry from Creative Sound Solutions, a vendor of ours.  Creative Sound Solutions was founded by Bob Reimer in Canada.  When he decided to retire, Dan and Kerry (DIY speaker builders at the time) purchased the name and assets from Bob.  Creative Sound Solutions, at the time, had no real stream of revenue but had developed some custom drivers (including the passive radiators we have used over the years).  Initially Dan and Kerry had full time jobs and could not quit because CSS revenues were insufficient to support them. Over the next few years, they built the business and both now work full time at CSS.

As I indicated, I have dealt with CSS over the years and appreciate what Dan and Kerry have done.  They are high quality individuals who are very enthusiastic about the audio industry.  I have full confidence they would do an outstanding job taking Salk Sound to the next level.  And they are young enough to carry on a business like this for many years to come.

This would be an ideal situation for me personally.  I could continue to be involved but wouldn't have to deal with the day-to-day of running a business.  This would allow me to spend more time on the things that I love about this business and less time dealing with shipping, accounting, parts ordering, scheduling, and other internal operations.

The only thing standing in the way of them taking over the business is pricing.  Obviously, they cannot run a business as a "not-for-profit" or "hobby" company like we did.  So in order for this to work out, our pricing needs to be increased so they can support themselves.

For that reason, we will be increasing prices effective March 10th.  Some pricing will not change, but some models will see a significant increase (also due in part to increased parts costs).  Current pricing will remain in effect in the interim.

The plan is to have Dan and Kerry work here for about a month after the new pricing is in effect.  If we continue to sell at the new pricing levels, they will take over the business and I will become an employee.  If not, they will not be able to justify purchasing the company.

This is the best opportunity possible for us to enjoy a successful transition.  It is my hope that you will support their effort.  I know I will.

- Jim

[Peter J]

Nice that you could find a way to perpetuate Salk Sound and also scale back your involvement. Too often small companies just fizzle out when the principals wish to move on or perhaps even perish as we've seen with several over the last few years.

Here's hoping it works out as intended.

[Scotman]

All the best on the new venture Jim, hope things all work out and you can scale back on all the work you are doing. Glad that you have dealt with them in the past, that helps out a lot. Wishing you all the success you deserve!

[Saturn94]

All the best to you, Jim, and continued success for Salk Sound! 

[newzooreview]

I hope this works out for everyone. I remember visiting Dennis Murphy's house to listen to the HT1-TLs and talking with you at Capital Audio Fest #1. I had a lot of good listening with those speakers.

It is great to see Salk map out a long, sustainable future. It is one of the great American audio companies, in my view.

[RonN5]

Jim, I suspect what people really appreciate is you being up front about the future. It’s pretty frustrating to learn that you bought a great product from a small company… which for any number of reason closes its doors… and now there is no way to get service and the product you bought is devalued…. and a lot of us have systems made up of components from small shops.

Hopefully, Dan and Kerry see the value and Salk as a company lives on for a long time….and hopefully they continue what makes Salk so unique… beautiful sound and beautiful cabinets.

[GlennDog]

3 Cheers for (semi) retirement .. .. you and Mary deserve it. Enjoy this chapter 🎼🥳🎼🥳

[AllanS]

Jim, I suspect what people really appreciate is you being up front about the future.

My thought exactly.  I imagine folks will still find Salk product to be a great product for a fair price.  Value and values will keep your order board healthy. 
Best of luck!  I hope it all works out.

[rowdyrobot]

Best Wishes on the transition plan, Jim. You provided first-class service throughout my speaker build and the product quality is outstanding. I love my speakers (Song3-A) and consider them a great deal. I imagine you’ve instilled these service and quality values in the culture of your company. May Salk continue long into the future! Enjoy the product development and more free time!

[Rshorb]

After visiting the shop today and meeting Dan. I can tell you he is a stand up guy that has his heart into Salk just like Jim and Mary. I wish Dan and Kerry the best as they take over Salk. I really can’t wait to see what this team can produce next.

[JDoyle]

I’m very happy for you Jim (and Mary!), congratulations on your semi retirement!
Your succession plan sounds like a win-win.
It’s reassuring to know that the brand that you built will go on.
Best of luck to Dan and Kerry, I will (and I’m certain others will too) continue to promote these wonderful speakers!

[zybar]

Congrats Jim and Mary!

I still remember when I bought my first pair of Salk speakers (HT3's - see below) back in 2004.  In fact, I think it was one of the earliest pairs of HT3's...

I have had multiple other purchases after those HT3's and still use Salk speakers for my HT.

Really happy to hear of the possibility of keeping these great products available.

Best of luck.

George

[Zuman]

While I've never had the pleasure of owning Salk speakers, I've built a pair of CSS Criton 2TD-X MTM speakers and have a pair of CSS Criton 2TD-X towers in the works. I can confirm from my email interactions with Dan and Kerry that they are responsive, knowledgeable, good-humored, and all-around high-quality individuals. It sounds like your legacy is in good hands!

[VinceT]

Both companies are very close to me geographically and happy to hear two companies having success in the state of Michigan. There could be a lot of synergy there between a well respected speaker designer and builder combining with a company that appeals to the DIY crowd. Best of luck to all with this endeavor!

[Mudslide]

Welcome to the fruits of your tireless labors, Jim and Mary.  I really hope this new deal works out for you...two of the best people in our wonderful hobby.  And many of us out here in the Oregon hinterlands still appreciate your support, education and visit.  Cheers...the best is yet to come for you.  (Trust an old, retired guy!  )

[Boybees]

Jim, I've been your customer for more than 15 years, and during that time you've been a role model for me in terms of how to run a small business and how to treat customers. Your approach to succession is thoughtful and once again shows how you put the needs of your customer base first. You've created a brand that represents trust, quality and service, and that is an achievement that is worthy of admiration.

With respect to the price increases, it seems like we have a limited window to submit orders under the current pricing. I've had my eyes on the BePure 2's, can you give an estimate of the pending price increase on that model?

Thanks, Dave

[Mary]

Jim and Mary,

First of all, congratulations! I am happy that you have found a buyer for Salk Sound! I know that you and Mary have worked hard to make Salk Sound what it is today and you should be proud of that. I would hate to see you retire and your beautiful speakers go away.

I will always remember the first show I attended. We were showing together at Axpona. Mary and I had so much fun standing in the hallway driving customers into the room.  Frank came out of the room wondering what was going on. He had never had a room so full at a show before. We laughed so hard that entire weekend, as well as every show after that! You always had so many stories to share and I  enjoyed them all.

While it is bittersweet to see you retire, running a business is time consuming with rare opportunities to spend quality time together. I know personally, life is short we all  need to make sure we take the time to enjoy our families while we have the opportunity.

Wishing you the best and a smooth transition.

Please be sure to visit all of us at AVA when you are in Minnesota!

Mary

[jsalk]

Jim, I've been your customer for more than 15 years, and during that time you've been a role model for me in terms of how to run a small business and how to treat customers. Your approach to succession is thoughtful and once again shows how you put the needs of your customer base first. You've created a brand that represents trust, quality and service, and that is an achievement that is worthy of admiration.

With respect to the price increases, it seems like we have a limited window to submit orders under the current pricing. I've had my eyes on the BePure 2's, can you give an estimate of the pending price increase on that model?

Thanks, Dave

Thanks for the kind words.  Much appreciated!

As for the price increases, some speakers will not see increases at all.  Prices on the BePure 2's, however, will definitely increase.  The driver costs have increased dramatically and the speaker was underpriced to begin with.  I would expect BePure pricing to increase $2000-3000 (more than the increase for any other speaker).  But even at the increased pricing, I think this speaker will be one of the best values in audio.  A number of companies have developed monitor models using Purifi drivers with a single woofer priced at around $15,000 per pair.  At retail, the BePure 2's would be at least $20,000 per pair.

- Jim

[jsalk]

Just to clarify things, I am not planning on retiring.  When Covid hit, we were closed down for seven weeks.  It was at that time that I realized I am not a good candidate for retirement.

I just want to move on from the day-to-day functions of running a manufacturing entity so I can concentrate on audio-related things I love to do.  If this all works out, it will be a tremendous plus for everyone involved and will insure that what began as a hobby will have a successful life of its own.

- Jim

[Saturn94]

Just to clarify things, I am not planning on retiring.  When Covid hit, we were closed down for seven weeks.  It was at that time that I realized I am not a good candidate for retirement.

I just want to move on from the day-to-day functions of running a manufacturing entity so I can concentrate on audio-related things I love to do.  If this all works out, it will be a tremendous plus for everyone involved and will insure that what began as a hobby will have a successful life of its own.

- Jim

Perhaps this is premature to ask, but I was wondering if you will continue to be the contact person for customer service and support (which has been excellent in my experience!)?