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Conference hips::uk_audioo

Title:You get surface noise in real life too
Notice:Let's be conformist
Moderator:GOVT02::BARKER
Created:Thu Jul 28 1988
Last Modified:Mon Jun 02 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:550
Total number of notes:3847

354.0. "Linn's new demands on dealers" by KRAKAR::WARWICK (Trevor Warwick) Mon Apr 13 1992 18:01

    
    I read in this month's HFN/RR that Linn are making some fairly
    outrageous demands of the shops who have lost their dealerships. For
    example, they say they won't supply spares in future unless the
    (ex-)dealers supply Linn with their complete Linn customer list.
    
    This sounds like sharp practice, to say the least. Does anyone know any
    more details ?
    
    Trevor
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354.1It's not that outrageous....BAHTAT::SALLITTa legend in his lunchtimeWed Apr 22 1992 17:2925
Linn have put some special requirements on those dealers who wish to keep the 
franchise. The main areas are around demo facilities, installation and support, 
credible business plan, musical evenings, approved subcontractors, etc. They 
are also requiring (as I understand) those dealers who wish to keep the 
franchise to sell the whole range of Linn kit.

Those dealers who have left Linn either refused to adopt these standards often 
on the basis that they prefer to offer just the best from each manufacturer's 
range, or just didn't have the ability to achieve Linn's targets and/or 
standards. The dealers who left the fold were made the offer that Linn would 
take all their Linn stock off their hands at cost in return for a list of that 
dealer's Linn users. The response from most was "Get stuffed, they're OUR 
customers". These are probably the dealers referred to in .0.

The logic behind all this is that Linn is preparing for the single Euro-market 
at the end of this year. Without some sort of contractual standard-setting, 
Linn would be compelled to sell their kit through anyone who asked for it - 
Currys, Comet, Argos, et al, not to mention the cowboys in "straight" hifi 
retail.

Linn's approach is probably sound. 1991 was one of their best years for profit 
and turnover, in the midst of a recession, and 80% of that business came from 
20% of their dealers.

	Dave
354.2WOTVAX::MEAKINSClive MeakinsWed Apr 22 1992 18:038
    Linn wanted two shops I know of to push their kit first, turning these
    shops into pure Linn outlets.  I know that these two shops prefer to
    understand the customer's requirements and then suggest a shortlist of
    suitable equipment.  Linn felt that only their equipment should be
    suggested first off.  They seem to be setting up a chain of stores to
    service their user base.  This seems like a good idea, though their
    execution has probably caused a great deal of ill feeling from dealers
    who may not now have many kind words to say about them.
354.3LARVAE::IVES_JBad Karma in the UKWed Apr 22 1992 18:1323
    Well thts one way of looking at it.
    
    Don't you think that linn are trying to develop the kind of dealership
    that B&O or QUAD have where they sell complete solutions, Front end,
    tuner, Amps speakers and interconnects. The works in fact.
    
    Most Linn dealers can probably shift Sondeks/Kans/Basiks/Ittoks etc
    quite happily, but if I was a dealer already selling mid price amps
    (e.g. Musical fidelity) or high end CD players (e.g. meridian) I
    would'nt neccesarily want to also have to stock the Linn equivalent,
    knowing , perhaps that it was'nt as well received as their earlier
    products ? 
    
    I admit that Linn equipment is good, a friend of mine recently bought
    the Intek and it's a good amp, buit I think the gap between Linn's
    amps/CD player and the competition is getting narrower.
    
    I would think that Linn have not yet taken the number of orders they
    expected for the CD player. Not because it is'nt good ( I heard one at
    Farnborough HiFi and liked it), but because it is'nt the same leap that
    the Sondek was over the competition back in 19??.
    
    Just opinions mind.
354.4Makes sense to me.SKIWI::EATONMarketing - the rubber meets the skyThu Apr 23 1992 02:123
I guess a lot would depend on whether the dealer had to take all the kit on
assignment prior to sale. I also suppose that, for the great unwashed, listening
is not that important a pre-cursor to buying as it may be for some others...
354.5Probably best policyWOTVAX::MEAKINSClive MeakinsThu Apr 23 1992 14:1711
    I wonder if the Linn market will become polarised.  What I mean is that
    shops that are not Linn dealers, especially those who used to be Linn
    dealers, won't have very kind things to say about Linn.  Whereas Linn
    dealers will be very pro-Linn, more pro-Linn that their other agencies
    they hold as these are the sort of dealers Linn now insist on.
    
    As Linn hold and expound strong views on hi-fi many people either love
    them or hate them, I believe their new dealer policy will exacerbate
    this situation.  This could well be the best policy for their long term
    survival by creating an even stronger hard-core of Linnites.  I don't
    believe Linn could survive intact in the mass market mid to hi fi market.
354.6Linn can deliver fastBAHTAT::SALLITTa legend in his lunchtimeThu Apr 23 1992 14:3516
Very few dealers actually hold Linn products in stock, other than for dem. Linn 
use a very good "just in time" process to manage their internal inventory 
during and after manufacture, and this helps them supply dealers (in the UK at 
least) any current product within one working day. (FWIW, they run it on 
VAXes...). When I ordered my replacement LP12 motor unit, the dealer sent Linn 
a fax at 3 p.m. on the Saturday, the new unit was in the shop in York the 
following Tuesday - the shop doesn't open Mondays.

Thus Linn's UK dealers don't have to hold backup stock unless they want to, but 
Linn do expect their dealers to be able to dem every Linn product. This still 
means a wide dem stock and a considerable upfront investment from the dealer, 
as well as comprehensive dem facilities. I understand Linn reward dealers who 
make the commitment with appropriately wide margins, so they do not feel 
pressured to shift high volumes.

	Dave
354.7KRAKAR::WARWICKTrevor WarwickThu Apr 23 1992 16:525
    
    It said in HFN/RR that the Sound Organisation are not Linn dealers any
    longer. Isn't that where you go, Dave ?
    
    Trevor
354.8No EDI?TIS::GRUHNThu Apr 23 1992 18:327
    Re. .6
    
    What? With all those VAXes they are using FAXes?  Come on, get in
    there and sell them DEC EDI. That way you will get the motor before
    you order it.
    
    Bill
354.9Different company.....BAHTAT::SALLITTa legend in his lunchtimeFri Apr 24 1992 14:2815
re .7....


The Sound Org in London and in York are seperate companies, though they used be 
the same. Two people from Graham's HiFi set up on their own c.1981, then one 
moved north to open the York shop. About 3-4 years ago the London guy sold up.

Note that the York shop has umlauts (umlauten?) over the letter O in the logo, 
whereas the London shop no longer does. Also, I believe the London shop no 
longer has any connection with Sound Org. Enterprises, who manufacture the 
Sound Org. brand of support equipment.

End of rathole.......

	Dave
354.10UPROAR::GUNNSBiodegradable and ozone friendlyFri Apr 24 1992 14:426
RE .1

What would be wrong with Currys, Argos etc selling Linn? This seems a bit 
snobbish. Bring good hifi to the masses!

Steve
354.11The masses won't want itWOTVAX::MEAKINSClive MeakinsFri Apr 24 1992 17:058
>What would be wrong with Currys, Argos etc selling Linn? This seems a bit 
>snobbish. Bring good hifi to the masses!
    
    Wasn't being snobbish, it's just that Linn kit doesn't fit the market
    the Curry's etc pander to.  Most of mass market punters are after
    functionality, looks, convenience and something that can provide
    background sounds.  If sound quality is paramount, then go to a
    specialist hi-fi shop for this niche market.