@Bootzilla:
You echo my experience with a dealer about 15 months back, when I was considering the DSD Sr. He had offered one new in the box with a Bridge II for $3,200 with no trade in… It caused me to take pause on the value equation of the DSD Sr. There were additional factors as well, not related to the dealer or transaction, that I prefer not to go into at this time. Ultimately I am quite satisfied with my ultimate choice. I still keep on eye on the DSD Sr. as a option. Certainly that steep discount spooked me. Not so much knocking the product as the situation caused me to evaluate other options more thoroughly. Ultimately my thought is the direct sales approach truly needs to offer the consumer a value oriented option; that being quality, technical support, and price.
POLL: Which of the following statements best describes your feelings about PS Audio going to an all-factory-direct sales model?
- I am happy about it because I expect it to lead to lower prices for new equipment.
- I am unhappy about it because I expect it to lead to higher prices for new equipment.
- I am happy about it because I believe it will improve the resale value of used equipment.
- I am unhappy about it because I believe it will lead to higher prices for used equipment.
- I am happy about it because I dislike shopping around for the best price, and knowing there is one seller with one price makes things simpler.
- I am unhappy about it because I enjoy comparison shopping for the best price.
- I am unhappy about it because it will harm independent audio dealers.
- I am ambivalent about it because there is nothing I can do about it.
- I decline to answer because I fear @bootzilla is a corporate spy who is conducting market research for PS Audio.
0 voters
@Bootzilla poll:
My ambivalence as indicated in the Poll is more related to other options being available, i.e. PSA competitors. Especially those where I am able to audition components at the dealer show room with the option of an in home audition. To date I have not purchased dealer direct for this reason. Typically the dealers I have worked with have been reasonable in their pricing. I do recognize that the brick and mortar option is dwindling, but in my region it is still a viable option. Most dealers I’d consider are within a reasonable drive.
This seems like wishful thinking. I personally think tariffs may have weighed into the equation. Unless you take advantage of the trade deal going with a dealer makes equipment far more realistic, especially when ultimately selling what you have. Neat concept but not for me.
What I think will work less long term is selling outside the US, if the US conditions for consumers stay as much better as they are now or even get better again compared to other countries connected to a distribution/dealer structure.
People don’t like to be unprivileged (I don’t mean the customs/tariff thing)
How are the planets so for PS audio in Europe or for my small country Denmark Paul?
more love Michael/Denmark
A most interesting development.
I recall that 10 or 15 years ago, Pass Labs “fired” all of their US dealers. Any dealer wanting to continue to represent Pass had to “re-apply” to carry their line.
At the time, I worked for a small manufacturer of art materials that has a loyal following in spite of being a premium quality (and premium priced) brand. Traditional distribution for this industry was a two-step model through distributors to independent art stores, some of whom also ran a catalog mail-order business, but this was being disrupted by the large direct-to-consumer catalog merchants who converted to on-line retailing… and then got into a price war. The wholesale pricing model followed by the industry was volume-based, so the result was “…every day low pricing…” that ensured that the independent brick and mortar dealers could not make a profit on selling our product. They began to solve that problem by taking our product off their shelves. So the result for us was losing point-of-sale service, advice, and our most effective brand ambassadors.
Back to Pass. Because of the situation my company was in, I got curious and called them to ask what was up. They were pretty up front with me and essentially said they got tired of grey market activity of authorized dealers discounting and/or unloading inventory to non-authorized retailers when they needed cash. Interestingly, they shared that overseas sales were large enough to allow them to take this rather drastic step. The result was far fewer, but more supportive, dealers and from what I’ve observed, the company hasn’t suffered.
The company I worked for ended up implementing a “minimum advertised price” policy or “MAP,” which meant that we had to fire our second-largest customer in the process.
For better or worse price, discounting and sales practices send a message about brand value and the product. Ultimately it’s up to the manufacturer to defend what they built. In the case of MAP programs, the courts have agreed and upheld the right of the manufacturer to dictate advertised prices, but not prices agreed to in an arms-length negotiation.
It’s’ a tough world out there, folks.
@Paul Unfortunately I feel this is a sad announcement. From now on we’ll get to pay full retail price for a no retail experience. Unless we know someone who owns the specific PSAudio component we wish to consider we will have to buy it for full price to even be allowed to hear it.
A lot of us still work, 30 days is a very short window to do the detailed listening and decide if the product we just bought is the best choice. Without retailers there is no opportunity to hear other similar options or to consider the product over time and with other system components you may be considering. We’ll all have to wonder how many times our brand new PSAudio component has been auditioned and returned by someone else?
Trade-ins sound ok but does that mean I have to package up my existing component, send it in, receive the presumably new component, listen to it (without the component I’m trading-in to compare it to), decide it isn’t right for me, package it up and return it within 30 days and then wait to get the original component back? Not to mention fully paying my credit card bill and then waiting for a refund.
I’m sure this will be a big boost to PSAudio’s profit margin but I feel it is on the backs of their customers. I’ll have to really want something PSAudio come out with to put myself through this. Profits probably pencil out nicely, I hope you don’t damage your reputation with your customers too severely.
PS audio is just preparing their company for the future. Unfortunately, it will look very different from today. We have been through many changes since I started with HIFI in 1970.
One of the most important employee or department of the people I work with is the package department so the last test before the product is sent to the customer. It can be seen in the total company accounts.
This requires a high degree of control over the equipment being broadcast. That there are not many mistakes. In the companies I deal with, they test all products once more before sending them to customers and it can pay off.
This means that less than 10 percent of products are returned because the products were not for the customer. It means that the error rate of the products shipped in such a price range is almost equal to zero.
This also means that things like the old PowerPlay / GlobalNet website just won’t happen again. But I think PS audio now is quite clear. http://powerplay.psaudio.com/ It was just an example.
It will be exciting what will happen to Europe and my small country Denmark.On the other hand, PS audio sales in Europe are probably not very big.
I am so happy that I only have to try the new speakers from PS audio so I am in goal.
I wish PS audio all the best for the future and hopefully reach their goals.
More love Michael/Denmark
At the end of the day, the market will determine if the move is a good one. I’m surprised how much attention this thread received in a short period of time.
I think it means paying the full price and only sending the used component in for the discounted full price if and when you decide to keep the new product.
The sound of all the hopes being crushed of those who thought they would get an Obsidian DAC at 40%+ off MSRP from a dealer is deafening haha.
This will be interesting for sure. I am just not certain that if current MSRP pricing stays the same if PS Audio can remain competitive in the marketplace against similarly priced gear.
Agree 100%. That was my first thought!
Very interesting development, I expect the price to reduce by at least 25% to reflect the lack of dealer markups. Assuming price reduction will happen, it is ultimately a good thing as it should stabilize the used market and increase the brand value.
If no price reduction, I can see that PS Audio is going to price out a good portion of their customers, from those that can’t afford full msrp to those that are used to getting discounts and support from their dealers.
PS Audio is not going to lower their retails prices when they bring all sales in house. All this means is the days of getting product at lower prices are gone. Too bad as I would never have purchased the DirectStream DAC I have if I had to pay full retail.
Prices are always negotiable. I don’t see this changing. I think it’s clear all DS were not sold at $6k, otherwise the retail would have been set at $8k.
I prefer cutting out the middle man, which in my experience has been more a drain on my enjoyment than an enhancer.
30 days does seem short.
45 days seems like the sweet spot.
I don’t know why you say that. Once they bring all sales in house, the price set will be the price. Why would it be negotiable?
PS Audio’s trade in policy for used gear of any manufacturer (not just PS Audio) is great and extremely generous. It is also how they can effectively discount when there is no sale going on.
That’s all well and good but If I can get 40% off MSRP and still sell what I am replacing I will be way ahead of just trading in.