Rudolph is a very bright person and we certainly listened to what he had to say to us in regards to distribution and our sales model in the EU.
Exporting and importing goods and services is an art unto itself. It has taken us years to learn how to manage it efficiently to best serve our Hi-Fi Family.
And, like in the US, it’s forever changing. Europe is no less impacted by the “Amazon” effect than anywhere else, it’s just slower to take hold. But it’s coming.
It should be no surprise that commerce and distribution of goods throughout the world is moving from a time honored system of real-estate protected bricks and mortar shops to something more efficient.
Our world is steadily changing day-by-day.
The only constant is change itself.
We do not sell to individual dealers in countries outside the US because dealers are neither equipped nor set up to handle direct importation of goods from another country. Further, we have to ensure service for our equipment. How many individual
dealers are set up to properly service our products (and the products of every other brand they sell)?
Just imagine the impracticality of a dealer directly importing all their brands (or even one). The importation rigors of shipping, customs, declarations, taxes, regulations, and communications with the factory are not for the lighthearted—and
then there’s our side. We don’t often ship just one unit to a country. To prepare a shipment and all the documentation necessary for a single shipment outside our country takes a lot of work. It only makes sense when we can ship entire pallets of equipment
to another country—and then there are freight costs. Air freight is expensive so most of our distributors arrange sea freight.
Distributors serve a valuable function individual dealers cannot match. They inventory products, service them, act as a single point of contact for our people, speak the language, drive to customer’s homes when needed, market in the country, display
our products (at their expense) at audio shows, know the territory.
There’s no way we would consider direct selling into another country from Boulder. Perhaps it might work for some smaller boutique audio manufacturers, just not us.
In conglomerate areas like the EU, where numerous smaller countries are tied together, a common European distributor might someday be worth looking at, but there’s plenty of problems with that model too (remind me how many different languages
are spoken within the EU). No, for now, this model is working well and I suspect will be in place for quite some time.
That’s not suggest it won’t someday change.
The only constant is change itself.