WHY DOES R.E. DESIGNS SELL BY DIRECT MAIL?
Preface
First, I need to share with you, a brief story
from very early in the history of R.E. Designs. My first experience with an
audio retailer in this business showed me just how much some of them "care"
about the equipment they receive.
A pair of my LNPA-150 monoblock power amplifiers were loaned to the retailer from whom I had purchased a pair of loudspeakers. During the time I had known him, we had established what I thought was a good rapport. Since my electronics and his speakers sounded so dynamic together, I agreed to let him have a pair for demonstration purposes. At the time I thought this arrangement could be beneficial in terms of sales for both of us.
Several months passed with no sales of my equipment. When I spoke with the retailer he informed me that he had not been using them lately but offered no explanation. A few weeks later I stopped by his place and noticed one amp had a stain on the top cover. I decided to bring both amps back to the lab for a cleaning and an inspection. When I opened the stained amp. I found what appeared to be coffee spilled inside. I was less than pleased not only because of the spill, but more importantly because the retailer never cared enough to notify me about the situation. I wondered just how long my amps would have remained in that condition if I had not dropped in that day.
The Numbers Game
The first thing consumers must know is
that audio retail pricing is typically two times wholesale (the cost to the
retailer) and the wholesale price is usually three times the manufacturer's
parts cost. This means that consumers pay approximately six times parts cost
when they purchase a piece of audio equipment. The LNPA 150's are sold direct
mail for a price of $3,295.00 a pair. These amps are of excellent quality
regardless of price, but if they were distributed through retail audio stores,
how much more affordable would they be to anyone at $6,590.00? The main reason
I entered into this business was to design equipment for music lovers that
allowed them to truly hear and enjoy the music as it was recorded. I did not
intend to produce status symbols or "works of art" that people could only
someday hope to be able to afford.
Because my first audio retail experience was less than wonderful and because the retail price structure would take my equipment out of the affordable market for most music lovers, I decided to explore another means of distribution - direct mail. Through direct mail, I can offer the LNPA 150's to the consumer for $3,295.00, which is only slightly more than twice parts cost.
How can I afford to do this when other manufacturers typically charge three times parts cost?
1) I'm in the fortunate position to have very low overhead costs. No fancy office or manufacturing facility for me!
2) I have eliminated all the middlemen, i.e. sales reps and their salaries, sales commissions, and showroom expenses.
3) I have a conservative advertising campaign. Most of my sales come as the result of some really terrific reviews and good "old fashioned" word of mouth recommendations. Most companies pass on the cost of advertising to the consumer by adding it to the cost of the equipment. The next time you drool over some equipment on a full page ad, think about how much money has been added to the price of the equipment in order to advertise in that glossy audiophile magazine.
4) While other companies spend extra money on expensive exterior housings, I prefer to spend my money inside the housing on the engineering and design, where it matters most. It is not spent on marketing hype or on expensively machined faceplates. Marketing hype and faceplates do not make audio equipment sound better.
Although, my equipment will never be in the Museum of Modern Art, my products are extremely well built and durable. Once you listen to my equipment, you will realize they are designed as "works of art" for the ears, not the eyes.
What's the Meaning of This?
For you the consumer, it means that you get
an extremely great value passed on through our direct mail distribution. If
you take the time to read the reviews on our website, especially the LNPA
150 Monoblock Amplifiers you will notice a few consistent observations: 1)
The 75 watt LNPA 150 monoblock amplifier outperforms other well known 150+
watt amplifiers and 2) it is one of the quietest amplifiers on the market...
And we all know that if there is less noise in the equipment, there is more
music in the air! You also get personal service from me. I back all my equipment
with my 5-year warranty.
How does direct mail work?
Let's suppose you've read all the reviews,
checked your budget, done your math and decided that you want a pair of LNPA
150 amps and the SCPA 1 with the SB 1 switchbox. Good choice!
The first thing you should do is contact R.E. Designs either by email or phone so we can talk about your current needs when you order. I always prefer to speak to my customers at the time of their purchase. Usually we discuss the types of speakers and other equipment you own. If, in the rare case, I think that my equipment is not a good match for your system, I will recommend that you do not make the purchase. I am interested in satisfied customers, not returns.
Acceptable forms of payment are certified checks, bank checks, personal checks, & money orders. We also accept Visa and Mastercard. Orders paid by personal check will require 5 business days to clear before shipping.
We test and inspect all the equipment before it goes out the door and there is a burn in time of 7 days to make sure all the equipment meets our high standards. Should there be a problem, contact us immediately.
After the sale, I offer continued service. I encourage my customers to discuss any audio related topics with me from tweaks to in-depth technical theory. I don't charge for this service and most times my recommendations do not profit me in the least.
Shipping and Warranty
All purchases will be shipped by Fed
Ex. The cost of shipping is free. You will have thirty (30) days from the
day you receive the equipment to audition it in your own home in your own
system. If for any reason you decide during those thirty days that you do
not wish to keep your purchase, call me for a return authorization. You must
return the equipment to R.E. Designs in the original condition and packaging.
Upon receipt and inspection of your return, your money will be immediately
refunded to you.
Our Reputation
How can you be sure that we are a reputable
business? Stories of bad businesses circulate very quickly in this industry
and a bad business will not survive in such a competitive industry. I have
been in business for 9 years and have a solid reputation built on the testimony
of my customers. I'm not interested in short term gain but rather in long
term customer satisfaction.
It Takes Time to Compare Notes
In the extensive time that I have spent
auditioning various equipment in retail audio stores, I have found that most
of them do not know how to set up the equipment, the speakers, or the listening
room for optimal musical reproduction. This makes critical listening to a
piece of expensive equipment an impossibility in a retail setup. There is
definitely something to be said for auditioning a piece of equipment in your
own home, in your own system... and for more than just a few days. Comparing
two pieces of audio equipment takes time. At R.E. Designs, we're willing to
let you do that.
I realize that making an important and expensive purchase through direct mail is a difficult decision. However, you should know that the great bulk of computers and their peripherals are now being sold through direct mail from distributors. Audio equipment is quickly following this trend. Through direct mail, I am able eliminate the cost of the middleman and pass the savings onto you.
If you have any questions, please contact me. I'd love to hear from you.
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R.E.
Designs Tel:
781-592-7862 |
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