Peter,

In my youth whenever that was, B&O was sold in audiophile shops here.  The sales persons usually spent their time telling me how bad B&O was.  They always insisted on some behemoth amplifier would be what I really wanted.  I should have bought a Linn turntable considering the price today.

 

 

Soundproof,

Great story.  And, I couldn't agree more with your sentiments regarding loyalty to businesses that are enthusiastic and knowledgeable about their products.  The premium one pays to patronize a business like the gunsmiths you described (as opposed to a higher volume, less personable store), is well worth it on several levels (not the least of which is that it helps them stay in business).

Mark D.

P.S.  On an unrelated note, I've been meaning to write and thank you again for all the advice you were kind enough to recently give me about setting up my AV system.  I didn't realize that you hunt, too.  If you ever find yourself on this side of the pond (i.e. the USA), let me know and I'll take you hunting.

I heard a rumor the next stage is ordering B&O merchandise directly from Denmark with few regional offices scattered in the UK??!!

(A big hi to all the US folks here)...

One thing which I think has been said before, but should be said again is: B&O need to attract new customers. The strategy late last year of cultivating existing clientele doesn't go far enough to ensure sustainability.

My idea has always been to have one product which will draw customers into B&O. I thought the Beo5 would be that product. A self-programmable, self-customizable, universal remote. A B&O product for the masses. We already know people pay a premium for good S#iT (ie. Apple), I know I do; and I'm a solid middle class member. I'm not a doctor or a lawyer or a businessman. I save up for what I believe to be good service and quality. The Beo5, priced AS IS, would have been that product IMHO.

But again B&O chose to force dealer / customer interaction and close the system.

Michael:

A happy place...  flowery meadows...  Rivers made of chocolate ...

To be quite honest however, I've always envisioned Lifestyle AV to be more along the lines of what Peter was lamenting hence my own secret desire to visit next time I'm in the UK.

Just ordered some astro-turf for the office and a chocolate fountain for the corner, just in case you show up!

I think i'm in an entirely different position to official dealers to be fair.  My products are a fraction of the price, which immediately puts a 'velvet sheen' on any purchase.  We all love to save money, and when you feel good about this - the purchase is much more enjoyable and the customer all the more positive.

I do admit to really enjoying talking to my customers and getting excited about products though.  It's extremely hard work running LifeStyle, with very long hours - but i genuinely love the brand and love what i do, which i hope and think shines through.

I think the first post on this thread was a brave one too!  I would say that being defensive is not the way to go though.  Sell to a products strengths, and above all - be honest.  If a customer says it's bad value because it doesn't do something, agree rather than go on the back-foot.  That essential feature is worth something to them and if it's not there, it's not worth it to them. Simply direct your energy towards something that fits their needs - and if there's nothing there in the range just concentrate on giving them a good experience instore. They will be back.

I totally disagree when people say we don't represent the true B&O customer.  How many people think to themselves 'i'd buy the BeoSound 5 if it was wireless or you could load up your CD's yourself' but smile politely at the assistant and walk away without saying it.  At least we have the balls to actually shout about it on here..  We say what we think, and that's not a bad thing at all - i just wish B&O would take note..  We could be so much help!

Lee

ed7:

I heard a rumor the next stage is ordering B&O merchandise directly from Denmark with few regional offices scattered in the UK??!!

I thought I heard that as well here in the states. I received a communication from B&O America (via email, and postcard) regarding massive discounts (B&O discounts, everything is relative) on select products. My wife recalls the verbiage being "... as we prepare to move to a direct order system..." or something to that effect. I'm paraphrasing poorly, but the sentence gave just the impression that ed7's rumor gave.

soundproof:

Not entirely convinced that B&O's future lies with developers and interior decorators, as well as with AV-installers. Members of the segment Trip is so enamoured of rarely make their own buying decisions, usually can't be bothered with something as lowly as a trip to the store, and don't really have the time to wait while an obsequious dealer mucks about with the Beo5 programming in their living room.

I'd think that recruiting new customers to the brand would be a good idea, and that probably means having to spend a little time talking to "the common people", Trip, not just hanging around for the easy pluck.

But - as I've even voiced where it matters - B&O has two possible paths: either support their dealer footprint with excellent products and service; or become a specialist installer to the ultrarich with no need of a dealer footprint. I take it that Trip has made up his mind as to where to go.
This reminds me of the (place withheld to protect the guilty) dealer who chased a rich customer out of his store because his overcoat wasn't "sufficiently clean." The same dealer insulted a world famous concert pianist with the kind of snotty attitude that is guaranteed to turn off anyone with money.

 

Soundproof, the scenario you describe where the end user has only cursory involvement is the model that's currently paying dividends for me. I made up my mind to be profitable and as a business owner that is a top priority. Our relationships with custom builders, designers, and architects has yielded me 12 months of business in the 6 months I've been open. 

Now I completely agree that this model simply can't work in most places in the world, but with our current product mix we are absolutely genuinely out of the reach of many consumers in the US. We don't have a BV8 40 and the BV10 is 6-10 months away at last count. 

When I started at B&O nearly 10 years ago we had options for average consumers looking to go a bit up-market. We were more like Mercedes Benz or BMW to use a car analogy. I remember husbands and wives coming in to invest in a "grown up" audio system. In the years since the iPod and the propagation of cheap low quality flat panels issued a hammer blow to the AV industry and put many hifi shops out of business. Now quality gear has disappeared into out of the way exotic audio shops and the rest has been commoditized to a bunch of plastic rectangles. Custom AV, at least here in the US, has been absorbed into "residential systems" and is handled by security companies as often as AV companies. Bang & Olufsen was left with a retail network (and business model, and mindset) in a business environment that had abandoned the shop in favor of the mega-mart. 

A point of view that isn't generally discussed is that when you're looking for just a television set, Bang & Olufsen is wildly (and to some laughably) expensive, but when you're looking to outfit an entire home with multiple a/v zones with distributed video and control over lighting, t-stat, gate, and other automation items, my quote undercuts other AV firms simply because I can do it all without Crestron! That's how I've built my business and until Bang & Olufsen builds me products that make sense for middle income consumers it's futile to go after their business. I can try and move 30 BeoVision 8s or sell one custom system through a contact with a design-build firm. Do the math.

So it's true that I've looked into closing my storefront and opening up a suite of offices. At the end of the day a high street location is a lot of overhead to sell A8s when I could sell large custom systems with nothing but a working telephone. I long for the old days, too. I miss the person to person contact and feeling like I've made a family happy and given them a real exciting part of their daily lives. It can also get a bit boring to sell 6 BeoVision 7s to the same home and feel like the client wouldn't notice if they were all LG, but that's our lot. All I can do is remain optimistic that Kalle has a better idea of what our company represents than TBS did. Time will tell.

Sal, the "direct distribution" does refer to the fact that we no longer keep inventory between the shops and the factory. This is fairly common these days and has as much to do with new management as the economy. 

If I were to do a custom installation of home theater and audio, I wouldn't choose Bang & Olufsen products.  I would probably choose the custom install option from Bowers and Wilkins in which everything is hidden.  Because the TV panel would be less expensive, I would change it every time a better one is available.  One would always have the latest TV panel.

However I am more interested in music than TV.  If I didn't have B&O,  I would probably choose a higher end audiophile system.  This system wouldn't exactly have the design qualities of B&O but it could come close.

Although these are possibilities, I prefer to continue with my current B&O collection both old and some very new.  I hope we are not talking about either B&O going out of business or moving into premium installations only.

ed7:

I heard a rumor the next stage is ordering B&O merchandise directly from Denmark with few regional offices scattered in the UK??!!

No, this is in place now. It's simply that every store order is placed directly with Struer directly and then shipped to the store. No stock in-store. No 'middleman'. This can mean that some products take longer to reach the store but, in my experience, it doesn't seem to have made much difference. Two weeks from ordering in-store?

I don't normally rant in fact I don't normally post much and very much enjoy reading comments form other members.

B&O UK headquarters service is woeful. You are put through to some staff who cannot be bothered to show any interest and help. Any technical problem, all they do is email to Gloucester and do not chase up. I have a BC2 which somehow plays DVD but when trying to load CDs the CD slips from the mechanism as the wings close. Any body heard of this before?

Splashed out on a pair of Beolab 9 in a West Sussex store. Since it opened in 2001, I have bought countless things (BV5, Lab2, BV7, BC2, BV6) over the years and was fiercely loyal to the local shop. Gota good discount on lab9, after installation (which I expect to be free) got charged £300 for installation as the discount implies self installation (which I have never experienced before). I refused to pay, the manager called me during worktime to hassle me and I ended up having a shouting match with him. I am afraid this completely spoiled my buying experience of the lab 9.

In this economic climate, companies like this cannot survive. Awful.........

Very silly. You are clearly a good customer and a repeat one. If they did not make it clear that installation would cost, I don't think they can sensibly charge you later. I hope you get on better with your new dealer. Maybe you you need to talk to Lee!