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Old 06-13-2007   #4
JerryDelColliano
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Join Date: May 2007
Location: Beverly Hills
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Default Re: IS THIEL Crazy Opening Crutchfield?

Kathy Gornik who runs THEIL is one smart cookie. She is on the audio board of the CEA and has run a mostly successful speaker company for decades which is saying something. At that level, I can give her the benefit of the doubt on this decision.

With that said, understanding the mindset of the traditional audiophile dealer the way I do (coming from that world and having succesfully solf THIEL years ago) the remaining dealers are likely to FREAK over this news. I could see them dropping the line right away with dozens of new lines with more protected distribution systems.

The question this leads me to is - have the audiophile dealers gone so far that they have no buying power any more? The days of the Stereophile or TAS review that drove new consumers in the front door by the dozens - is gone by 10 years. Most every audiophile dealer demands 50 points profit margin but they don't market their products and systems to new, local clients. They just pocke the margin from the sales created by consumer demand from the manufacturer and their marketing. Say what you want about Crutchfield but their list is big and the catalog - far reaching. Is it possible they have more reach with their catalog than traditional THEIL dealers? It think it is.
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