AURALiC Deploys Hybrid Sales Model

[The Computer Audiophile]

Hi Guys - Some news fom Auralic. Looks like it will be selling direct for the most part. 

 

 

 

 

 

AURALiC Deploys Hybrid Sales Model

 

 

Beaverton, OR- AURALiC LTD., North America, the high-performance electronics company best known for its development of audio streamers, servers, and DACs for the high-end audio market, has announced today it will make significant changes to its sales and distribution channel in the United States and Canada.  

 

AURALiC is ending its relationships with most of its current retailers and focusing the lion's share of its efforts on supporting its customers directly, selling their products on the US AURALiC website (www.auralic.com).  

 

Noting changes in technology, and how audiophiles and music lovers alike want to purchase products, combined with the complexity of network audio for residential use, as reasons for the change, AURALiC Director of Marketing in North America, Alex Brinkman said: 

 

“We want to continue fostering a close relationship with the high-end community, and while we value the efforts of retailers, many residential networks are complex enough that we need to be directly available to, and connected with, members of the community so they are able to use our products and enjoy music in a simple, hassle-free manner.” 

 

When asked about AURALiC North America’s plans to sell its products through the traditional high-end audio dealer network, Mr. Brinkman did say: 

 

“We plan to hire a very select few dealers to represent the AURALiC brand. AURALiC will look to dealers who are well-versed in, and passionate about digital, network-based audio to sell and support our line of products.” 

 

Up until today, AURALiC sold its products through approximately thirty dealers in the US and Canada. As of now, AURALiC products are available on their US website: www.auralic.com.  

 

 

About AURALIC LIMITED 

Founded in 2009, AURALiC LIMITED has established a worldwide reputation for creating innovative digital audio components of the highest quality. AURALiC’s elegantly-crafted products combine classic analog designs with cutting-edge digital technologies to blaze pathways into the future of high-end audio.  

AURALiC’s seamlessly integrated hardware and control software provide effortless command of high-resolution music playback throughout the home. Whether streaming from Internet services or local music collections, AURALiC components let you discover, share and connect like never before, expanding the horizons of your audio system with new levels of functionality and performance.  

 

Press Contact

 

Name: Alex Brinkman

Mobile: 415-515-2450

Email: [email protected]

 

[rodrigaj]

I looked but could not find any word on Return Policy, for example PS Audio's 30 day, no questions asked policy. Or Shiit's...,etc.

 

Perhaps I missed it somewhere.

[Ralf11]

I didn't realize they were in Beavertron - I wonder what a dumpster diving trip might turn up?

[Hugo9000]

So that's how a company press release is done these days?  Written to appear as if it's an article by some outside news source?

[rickca]

10 minutes ago, Hugo9000 said:

So that's how a company press release is done these days?  Written to appear as if it's an article by some outside news source?

Yes it's like how politicians talk about themselves in third person.

 

I think Auralic is doing the right thing.  My local dealer had difficulty supporting initial Aries clients because nobody on his staff really understood anything about computer audio or networking and it lead to customer dissatisfaction.

[Lobbster]

Canada too eh?

Hope something is up with NAFTA to modernize these old world trade rules.

 

No disrespect to dealers & retailers, but I've never been a fan of the (high cost) Canadian distribution model. PS Audio won't sell direct to Canada, you have to work with their Canadian distribution chain. PSA said it was a legal issue. I've heard the same from some Canadian distributors that it's illegal for US Merchants to sell to Canadian consumers direct. I've always ignored it because there are many (legal) ways to circumvent this "law". 

 

In fact, within the last 12 months I got a very wierd reaction from (an American) Parasound VP who was upset I was trying to circumvent the Canadian distribution laws to buy a Parasound A21 amplifier. The irony is you can't buy Parasound in Canada, they don't have a distributor. Pourquois eh? Bought Bryston instead.

 

OTOH, retailing is changing. Even Grainger is eliminating stocked retail shelves in favor of web order/pick up.

[esldude]

So will direct buyers now get dealer pricing?   Yeah, I know, I'm dreaming.  

[rando]

23 hours ago, Ralf11 said:

I wonder what a dumpster diving trip might turn up?

 

We could get a pretty good pool going for what sort of prior offenses are lurking on your police record.  

[lucretius]

On 9/14/2018 at 4:35 PM, Ralf11 said:

I didn't realize they were in Beavertron - I wonder what a dumpster diving trip might turn up?

 

One man's e-waste is another man's prized audio find?

[gmgraves]

This could be good news IF They sold to the public through their web-site at the same price they charge their dealers (in the consumer electronics industry, that's usually 50% (but not always). I know this because occasionally I want to own a piece that I have reviewed. This is called "buying on accommodation". Companies with a dealer network almost always accommodate at 50%, but companies like Emotiva (down, GUTB, down boy!) do not have accommodation pricing because they sell via mail-order only and have no dealer network, Therefore they sell to customers directly for what a dealer would pay for to sell Emotiva's products. If they did sell through dealers, for instance, their A-300 (Power amp; 150 WPC) would cost $800 instead of $400 (ostensibly - this is just an example of what I'm talking about. Obviously I have no real knowledge of Emotiva's marketing or pricing strategy. I do know that they do not have a an Accommodation policy - I've asked.).

Back to Auaralic though. As long as they do have dealers, they can't really sell directly at half (or any fraction) of dealer retail as it wouldn't be fare to the retailers. So, you can figure that when a company has both a direct sales channel and a dealer sales channel, they will sell direct at the same retail price as their dealers. IOW, they get the dealer markup themselves! All that extra profit is a great deal for them. For the customer, not so much!

 

The built-in profit for any consumer electronics product is one reason why modern audio components cost so much. For instance, a Japanese Esoteric Audio F-05 integrated amplifier retails here in the USA at $10,000. The dealer pays $5000 for it, the distributor/importer pays Esoteric Japan (where its made) $2500 for it and it cost Esoteric audio, Japan around $1700 to make the unit (following the normal retail pricing structure for such products. Of course, again, this is just an example, I have no idea to what extent Esoteric or any other company follows the "standard" sales "model").