[jtwrace]

http://stratecongroup.com/911sa1mcintoshgoesfactorydirect.aspx

[Phil A]

Does not really surprise me given the economic times.  We lost a small local retail chain in the area a couple of years back that had about half a dozen stores and was a dealer.  The number of dealers are fewer and there is a limit to the brands and models an individual store can carry.

[Occam]

http://stratecongroup.com/911sa1mcintoshgoesfactorydirect.aspx

I might be misinterpreting the article, but my read is that they've replaced their contract sales reps who interface with their dealers with their own internal personnel. I don't believe they are going factory direct [EDIT: In the sense that they'll sell their products directly to consumers], and will still be selling through dealers. The only thing that is different is that the interface between Mac and their dealers will be with Mac employees, rather than independent reps.

FWIW,
Paul

[kingdeezie]

I guess there are intricacies that I don't understand with going factory direct because I am not in business or economics, but I don't honestly understand why most manufacturers at this point wouldn't go factory direct.

Better prices could mean higher market penetration in this economy, and that means more people enjoying the music. 

[Phil A]

I guess there are intricacies that I don't understand with going factory direct because I am not in business or economics, but I don't honestly understand why most manufacturers at this point wouldn't go factory direct.

Better prices could mean higher market penetration in this economy, and that means more people enjoying the music. 

I agree but the reality is that when they are surviving and profitable in the current economy, they're unlikely to want to stir up dealer problems.  They also really don't know about the financial health of their dealers often until the dealer is closed or on the verge of closing (the dealers are not usually going to tell their manufacturers about it as they are trying to keep their business).  So it is hard for a business model that has used a dealer network for many years to suddenly become direct to consumers.  If a dealer feels that they can get better profits from another brand (and I'm sure in the state of the economy another brand may be very happy to have a new dealer) they may phase out of a product line.  We may yet see manufacturers banding together or are their own in major markets and opening up stores.

[macrojack]

It would appear from the number of posters who say "there's no dealer within hundreds of miles of me" when asking us about a brand and/or model, that there are many areas of this nation that do not have either the population density or the regional wage scale to support a hi-end audio store of even modest offerings. Outside of densely populated, high income urban areas the big box retailers rule everything that doesn't sell mail order or online.

Eventually Mac and other manufacturers will have to accept that reality and respond accordingly. However, it is likewise true that manufacturers of that tenure and stature will be sought after by informed consumers, no mater how obscure their place of residence. It is also instructive to consider that there are marketing intermediaries like Audio Advisor and The Needle Doctor who do a fine job.

Brick and Mortar audio salons will be as scarce as Ferrari dealers in the near future and so will be the number of consumers who can and do choose to buy from them.

Good thing for Mac and their like that there is a worldwide market to be mined.