McIntosh Seeks Luxury-Brand Position
- Thread starter JimBob
- Start date
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LIONKING
Active Member
As far as I can tell I'm in Ivan's business --- I'll share with you a bit of the reality of the marketplace from one vantage point.
Only one of my clients or peers has ever considered a high end system. The one who has a high end system has a McIntosh system which is not plugged in. To help you calibrate, the top 10% of my clients could afford to buy McIntosh --- as in the whole company...
BTW none of my clients own a sports car other than a Fiat or vintage Mercedes SL. Several collect homes, horses, art, furniture and small companies. Most of the clients own an all-in-one Bose system. None would even read Robb Report since the Robb Report is considered to be the height of poor taste but most like Architectural Digest. A few would think a 2000 watt amp might accidentally kill one of their grandchildren. Many don't think a hifi buying decision should be elevated to their level and would relegate it to a contractor or household manager.
McIntosh has its work cut out for them...
Only one of my clients or peers has ever considered a high end system. The one who has a high end system has a McIntosh system which is not plugged in. To help you calibrate, the top 10% of my clients could afford to buy McIntosh --- as in the whole company...
BTW none of my clients own a sports car other than a Fiat or vintage Mercedes SL. Several collect homes, horses, art, furniture and small companies. Most of the clients own an all-in-one Bose system. None would even read Robb Report since the Robb Report is considered to be the height of poor taste but most like Architectural Digest. A few would think a 2000 watt amp might accidentally kill one of their grandchildren. Many don't think a hifi buying decision should be elevated to their level and would relegate it to a contractor or household manager.
McIntosh has its work cut out for them...
jdcheek
Active Member
Panhead, I could not agree with you more when it comes to the product itself, and why some people purchase luxury items. What I am talking about is the marketing of the brand. If you sell it at Sears, sure we will all buy it, and be glad for it. But from Mcintoshs' perspective, it will dilute the brand, which is less valuable, and will not be able to command the current pricing structure. Read the history of White Furninture Company of Mebane, N.C. Started in 1889, it was a premier manufacturer of fine home furnishings commanding premium prices through the mid 1980's. When it was bought by Hickory White, and the strategy was to get it into more households, it became mass marketed, quality dropped, and the company closed went bankrupt in the early 90's. So the question is how to stregthen the brand by marketing to the elite. I agree also with Lionking, good luck Mcintosh. We all want the company to remain strong and viable.
... not just the most expensive Mc products
Apparently, McIntosh makes dealers purchase products they have on display in their showrooms. I drove for more than 600 miles this summer in several directions to find a 201 and 275 combination. I found the combination in only one store and only after they opened a 275 intended for the store owner. Of course, the store did not have the product in stock to sell, and I was 600 miles from home.
McIntosh should ensure that its dealer network has products available for display, even if they have to provide the models free of charge. It probably wouldn't hurt to help dealers with stocking products either.
Many people have to buy these products sight unseen and, more importantly, sound unheard. Some might regard purchasing something like the 201 with its track record sight unseen to be an absurd proposition.
Personally, I want the products in specialty shops, but I also want the specialty shops to have the products available and on display. McIntosh has a responsibility to help its dealers with the associated costs.
Apparently, McIntosh makes dealers purchase products they have on display in their showrooms. I drove for more than 600 miles this summer in several directions to find a 201 and 275 combination. I found the combination in only one store and only after they opened a 275 intended for the store owner. Of course, the store did not have the product in stock to sell, and I was 600 miles from home.
McIntosh should ensure that its dealer network has products available for display, even if they have to provide the models free of charge. It probably wouldn't hurt to help dealers with stocking products either.
Many people have to buy these products sight unseen and, more importantly, sound unheard. Some might regard purchasing something like the 201 with its track record sight unseen to be an absurd proposition.
Personally, I want the products in specialty shops, but I also want the specialty shops to have the products available and on display. McIntosh has a responsibility to help its dealers with the associated costs.
panhead
Mac owner for life.
I do work in custom homes in Vancouver. They range in value from 2 mil to 40 mil. Of the 100 or so homes I have been in in the last 15 years, only one owner is a true audiophile that has selected his own equipment. All the equipment is chosen and installed by custom AV dealers. Most of these dealers don't even have retail stores. If Mc wants a slice of the big dollar pie, they need to convince these dealers that their product will work for them.
The job we started today has a home theater room with 28 speakers and 6 subwoofers. That is what these dealers are pushing, not quality audio.
But by saying they are marketing their product to the mega-rich, that will prob have a trickle down effect to the upper middle class.
The job we started today has a home theater room with 28 speakers and 6 subwoofers. That is what these dealers are pushing, not quality audio.
But by saying they are marketing their product to the mega-rich, that will prob have a trickle down effect to the upper middle class.
Darn, Ivan, I had just started saving up!
Not really, they just need to focus on the millions of Robb Report subscribers instead of the handful of folks you described, and hit Arch Dig as well. Your client group is never going to buy anything based on marketing, because they consider all brands beneath them. From Wikipedia: "A number of other magazines are also published under the Robb Report brand, including: Worth, Vacation Homes, Luxury Home, Digital TV, MotorCycling, and Yachting." That group hits most of the market for their products. After all, they're not trying to sell the company.
I thought these three suggestions were very good. For myself, I would much rather buy a McIntosh rack that I can install and completely match the gear, and I think a high-end remote that programs itself fully for every Mc model I have just from clicking a list would be a big selling point for them.
AudioClassics1
Super Member
This is a very interesting thread that does touch on many good subjects.
First, I agree, dealers should have the product in the store. If a customer cannot at least look at the craftmanship of a Mcintosh, then they are less likely to purchase one (unless they are AK addicts like the rest of us!)
My philosophy as a salesman is that every new customer to the store gets a tour of the place....and the first room that they see is the McIntosh room. It is the picture of my avatar. We do have an advantage of having one of the largest inventory of McIntosh, and almost every single model is on prominent display. But wether a customer is looking at a used turntable or the latest surround receiver, they see this room. For one, McIntosh is a legacy in the industry, and it should be seen. Maybe not everyone will purchase McIntosh today...but who knows how it will change over the years. We still fill their particular needs in whatever component they need.
With us, we have a large used McIntosh inventory as well, so people can get into McIntosh without having to break the bank. Yes, some of the current products are a high value, but there a customers for every level of McIntosh. I think that it is up to the dealer to decide if they really want to be a serious McIntosh dealer. McIntosh provides an outstanding training program for salesman that gives them hands on training of all of their products. When we have a customer come in that says "I went to another McIntosh dealer to see this unit and they told me that they have to order it to get it, and I need to pay up front for it" is a shame. 95% of these people walk out with that unit that day from us! I don't think we are at fault....and neither is McIntosh. It is a dealer that obviously doesn't want to sell or sells "by default" Maybe it is harsh, but it is reality. McIntosh does work very well with dealers with terms and purchasing programs.
There is a market for the luxury branding, so I have no problem with that. It is a smaller percentage, but the demand is there. Talk about pride of ownership! And the customer that purchases the C220/MC275 combo at around $6k will also be part of a luxury branded company...not too bad! And it sounds great as well!
The next time you have a chance ask a non McIntosh owner, using higher quality audio, how often and long they listen to their music. Then ask a McIntosh owner the same question. A McIntosh owner is almost always double the time of a non McIntosh owner and a large percentage of that, they ALWAYS have their music on.... I think that speaks "volumes"
Can you tell that I love this stuff?!:yes:
First, I agree, dealers should have the product in the store. If a customer cannot at least look at the craftmanship of a Mcintosh, then they are less likely to purchase one (unless they are AK addicts like the rest of us!)
My philosophy as a salesman is that every new customer to the store gets a tour of the place....and the first room that they see is the McIntosh room. It is the picture of my avatar. We do have an advantage of having one of the largest inventory of McIntosh, and almost every single model is on prominent display. But wether a customer is looking at a used turntable or the latest surround receiver, they see this room. For one, McIntosh is a legacy in the industry, and it should be seen. Maybe not everyone will purchase McIntosh today...but who knows how it will change over the years. We still fill their particular needs in whatever component they need.
With us, we have a large used McIntosh inventory as well, so people can get into McIntosh without having to break the bank. Yes, some of the current products are a high value, but there a customers for every level of McIntosh. I think that it is up to the dealer to decide if they really want to be a serious McIntosh dealer. McIntosh provides an outstanding training program for salesman that gives them hands on training of all of their products. When we have a customer come in that says "I went to another McIntosh dealer to see this unit and they told me that they have to order it to get it, and I need to pay up front for it" is a shame. 95% of these people walk out with that unit that day from us! I don't think we are at fault....and neither is McIntosh. It is a dealer that obviously doesn't want to sell or sells "by default" Maybe it is harsh, but it is reality. McIntosh does work very well with dealers with terms and purchasing programs.
There is a market for the luxury branding, so I have no problem with that. It is a smaller percentage, but the demand is there. Talk about pride of ownership! And the customer that purchases the C220/MC275 combo at around $6k will also be part of a luxury branded company...not too bad! And it sounds great as well!
The next time you have a chance ask a non McIntosh owner, using higher quality audio, how often and long they listen to their music. Then ask a McIntosh owner the same question. A McIntosh owner is almost always double the time of a non McIntosh owner and a large percentage of that, they ALWAYS have their music on.... I think that speaks "volumes"
Can you tell that I love this stuff?!:yes:
Tom Blasing
Super Member
Klipsch has the same problem with their Heritage line. Nearly every time I go into a Klipsch dealer and ask to see/hear a pair of Cornwalls or K-Horns the salesman's reply is "Those are built to order only, sorry." The truth is the salesman is only half right. Klipsch doesn't care if the ordered speakers are for a customer or for the store's sales floor. They get their money either way. After 13 years in retail I had one thing engrained in my head by the bean-counters "If your gonna order something new it has to have XX% mark-up and HAS to have 100% of stock turnover in 90 days. No exceptions." Harsh but that's what they told me.
Now I don't expect a store to have back stock of each finish that Klipsch offers (there's more than what the catalog has if you have the money...
. ) so placing an order AFTER the prospective customer has a chance to experience the product may just be a happy medium. I happened to be in the same town as a very rare Klipsch dealer that had Cornwalls (and Heresy's but I usually don't count them) on display after driving 300+ miles to see my girlfriend's family. If I had a way to get them home I would have bought the floor models.
I can see where it comes down to capitol and a speedy product turnover. Like the stock market, we want a lot of money and we want it now.
I bought my frist Mac piece sight-unseen/heard. After I experienced the product I eventually ordred 3 more pieces and hoping to get more.
Shoot, the last car I bought had to be ordered from the factory too. I guess I'm one of those people that doesn't mind doing that sort of thing as long as it fills the bill when I get it.
Now I don't expect a store to have back stock of each finish that Klipsch offers (there's more than what the catalog has if you have the money...
. ) so placing an order AFTER the prospective customer has a chance to experience the product may just be a happy medium. I happened to be in the same town as a very rare Klipsch dealer that had Cornwalls (and Heresy's but I usually don't count them) on display after driving 300+ miles to see my girlfriend's family. If I had a way to get them home I would have bought the floor models.I can see where it comes down to capitol and a speedy product turnover. Like the stock market, we want a lot of money and we want it now.
I bought my frist Mac piece sight-unseen/heard. After I experienced the product I eventually ordred 3 more pieces and hoping to get more.
Shoot, the last car I bought had to be ordered from the factory too. I guess I'm one of those people that doesn't mind doing that sort of thing as long as it fills the bill when I get it.
