Emotiva Says Move to Retail Stores Will Benefit Brand - Home Theater Forum and Systems - HomeTheaterShack.com

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post #1 of 23 Old 06-11-15, 08:41 AM Thread Starter
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Emotiva Says Move to Retail Stores Will Benefit Brand

Founded in 2004, Emotiva has spent the last 11 years running a direct-to-consumer operation. Removing the middleman has allowed the company to offer quality AV electronics at reasonable prices. In a surprising shift, the company recently revealed a new retail-oriented distribution strategy that it says will lead to positive growth without raising costs to its customers.




Going forward, Emotiva products will be available through select retail operations (both brick & mortar and online sites) and Emotiva’s current online store that has dutifully served over 60,000 registered customers to date. Normally, one would assume that inserting a retail distribution channel would raise overall product costs to help cover additional margins for profit. After all, brick & mortar stores have overhead that isn’t cheap. But Dan Laufman, President of Emotiva, says the company’s current production scale and US-based manufacturing initiative will allow the company to make this move without detriment to consumer wallets.

“Since we first established Emotiva 11 years ago, dealers have continually expressed interest in carrying the brand, but until now it would have been challenging to do so without raising our prices at retail,” said Laufman.

Emotiva’s founding principal was to deliver high-end gear for less by streamlining manufacturing and sales. According to the company, their choice to begin with a direct-to-consumer model was a no brainer and has allowed them to come “full circle” and hit retail shelves. Laufman emphasizes that Emotiva’s efforts to move manufacturing to Tennessee has paid big benefits and will allow the company to alter their sales strategy without hiking prices.

According to an interview with Twice, Laufman says Emotiva will be picky about which dealers can participate. He estimates that 30 to 50 retailers will be involved by the end of the year. In order to keep customer service and support at a high-level, Emotiva will train dealers through sales materials and training events held in Nashville, Tennessee.

Official word detailing specific retailers expected to be involved hasn’t been released yet. Dealers interested in learning more about Emotiva’s new program should contact Nick Kaumeyer, Dealer and Sales Support, Emotiva, at 615-790-6754, partners@emotiva.com.


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post #2 of 23 Old 06-11-15, 08:52 AM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

Interesting move. Though prices could stay the same - Oppo didn't raise prices when they started selling through Magnolia.

I see it as a way for retailers to boost installation contracts, etc. They'll get a slight discount from Emotiva (probably similar to Emotiva's now-defunct "E-Club" which was a 10% discount on everything for a small annual fee), they'll sell at the same price as the Emotiva website, but offer custom install and training service to make their profit.
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post #3 of 23 Old 06-11-15, 09:03 AM Thread Starter
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

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thrillcat wrote: View Post
Interesting move. Though prices could stay the same - Oppo didn't raise prices when they started selling through Magnolia.

I see it as a way for retailers to boost installation contracts, etc. They'll get a slight discount from Emotiva (probably similar to Emotiva's now-defunct "E-Club" which was a 10% discount on everything for a small annual fee), they'll sell at the same price as the Emotiva website, but offer custom install and training service to make their profit.
Most certainly. Emotiva is obviously offering discounted prices and the retail stores will do their best to pad their sales with all sorts of add-ons to add dollar value to their sales. Extended warranties, install, etc.

I think this is a great move for Emotiva, and love the fact that they believe nearly 70% of their manufacturing will be on US soil within a year's time (give or take).
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post #4 of 23 Old 06-11-15, 09:19 AM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

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and love the fact that they believe nearly 70% of their manufacturing will be on US soil within a year's time (give or take).
Absolutely!

My Emotiva gear is not without its 'quirks', but the value and performance is really second to none.
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post #5 of 23 Old 06-11-15, 10:21 AM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

It is a great Business move in this day and age of audio.
I hope I can pick up my models before the next set of models come out.
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post #6 of 23 Old 06-11-15, 02:40 PM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

Hopefully this does not lead to price creep over the next few years. Most dealers are accustomed to buying product from manufacturers at 50-60% of the MSRP. I doubt Emotiva can currently offer margins that high. OTOH, if this results in more sales and greater economy of scale for Emotiva, perhaps they can improve dealer margins over time without substantial MSRP increases. Interesting move.
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post #7 of 23 Old 06-11-15, 05:58 PM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

Economies of scale combined with increased visibility should help Emotiva succeed at this venture.

"I left in love, in laughter, and in truth and wherever truth, love and laughter abide, I am there in spirit." - Bill Hicks
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post #8 of 23 Old 06-11-15, 08:39 PM Thread Starter
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

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Hopefully this does not lead to price creep over the next few years.
It seems impossible not to happen...but if they can move enough volume, it should negate the need to increase price.
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post #9 of 23 Old 06-12-15, 02:06 AM
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

I just noticed that Emotiva is having a sale. The XPA-3 I've been looking at is now $80 off.

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post #10 of 23 Old 06-12-15, 09:24 AM Thread Starter
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Re: Emotiva Says Move to Retail Stores Will Benefit Brand

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I just noticed that Emotiva is having a sale. The XPA-3 I've been looking at is now $80 off.
Time to buy, Dennis! Time to buy!
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