End of TagMcLaren?

[Scarp]

Huntingdon, July 28th, 2003

Dear TAG McLaren Audio Customer,
From its inception in 1998 TAG McLaren Audio has dedicated itself to producing the finest quality audio and audio visual equipment available. The standard and quality of our products have been evident through numerous awards of excellence and countless exceptional product reviews.

However, the present world economy has had a significant impact on the market for high quality audio and audio visual products and this has made it increasingly difficult for us to operate on commercially acceptable margins consistent with the levels of development investment required.

It is for these reasons that TAG McLaren Audio has ceased development of new products and will forthwith commence a full strategic review of its continued participation in the audio and audio visual markets.

Warranty, repair services and a Helpdesk facility will continue to be available, whatever the outcome of the strategic review.

Products already introduced into the market and their relevant, existing upgrades will remain available for the time being.

The following product upgrades are almost completed and will be made available: Software Upgrade “Height channel” for AV32R DP/AV192R and, for the time being, the Video Scaler Module VSM2048 for AV192R.

Please contact your TAG McLaren Audio retailer or email helpdesk@tagmclaren.com if you are interested in purchasing TAG McLaren Audio products, which are at the very forefront of technology

TAG McLaren Audio owners requiring service for their products should contact the retailer they bought the product from or email service@tagmclaren.com.

May I take this opportunity to thank you for your custom. If you have any questions, please contact me at zucker@tagmclaren.com or through the Discussion Forum.

Yours sincerely

Dr. Udo Zucker, CEO, TAG McLaren Audio

[David Meek]

Oh my, that is disappointing. :toilet:

I do find it ironic that in a letter announcing this, that they still plug purchasing their products like nothing is possibly wrong.




David - HTGuide flunky
Our "Theater"
Our DVDs on DVD Tracker

[Scarp]

Its posted on their front page now:
http://www.tagmclaren.com/great/August2003.asp

Obviously this kills their business, since most users bought Tag for their future proof design (upgradability, etc). However they end that now, so whoever was planning to buy Tag will now look somewhere else most likely.

Its sad ... but another one bites the dust.

[Lex]

Tag Mc seems to have come in at a bad time, perhaps to progressive an approach, perhaps to high end of an approach right off. I mean, you have to develop a reputation as a rule before you command highest price ranges for products, at least unless you fill a nich of something that doesn't exist previously or your products are so cutting edge, that people beat a path to their door.

Tag Mc needed to establish themselves with the masses. That's difficult to do at 6-8K entry fee. That's not to say they don't make great products. Maybe they do.

Throw in the difficult economic climate, and it's not an easy time for any startup company less than 5 years old, let alone a high end audio video company. Let's face it, A/V is considered a non-essential by most. So, during tough times, a high roller will not buy AV gear, before he stops driving his Lexus. Realizing of course, some of us are exceptions.

Who knows, maybe they will figure an angle out of this predicament. I hope they can. I think they have to establish themselves first, before they can expect realistic profitability. Companies seem to quick to pull the rip cord now. Geesh, why make the investment if you dont' want to TOUGH it out!

Lex




Cable Guy DVD Collection

[David Meek]

A/V is considered a non-essential

WHAT? BY WHOM? Some un-washed heathen, no doubt.




David - HTGuide flunky
Our "Theater"
Our DVDs on DVD Tracker

[Scarp]

A quote from Dr. Udo Zucker from the tag forum. It seems they have no financial problems, but the reason of them stopping development is that they think they cannot improve on their equipment.

(note its a reaction to some other questions on that forum)

TAG McLaren Audio is not in any financial trouble, we do not even have a cashflow problem and have no money from any bank. We are most likely in a better shape than most others. We eveb sit in a fully paid building and all other activities in TAG McLaren Grouo run profitable.

Therefore, to conclude the first part of my response, your statement is not only impolite but also factually wrong.

Our position of strength have given us the ability to observe the development of the market for high-quality home cinema and we are concluding that this market is at its present state too small to further invest into new products. Once again we can say this, so I believe from a position of strength, as our products are leading-edge already.

Staying with an example from F1. What do we advise a driver who has reached the zenith, i.e. being World Champion? To retire as it could now get only worse.

We have come into audio to demonstrate that we can design products which can compete with the best, despite the assumption that would be impossible as the audio world would be a difficult technical field.

I think we have demonstrated that! We feel we are at the zenith and hence we are deciding where we going from here...

[Burke Strickland]

Somewhat akin to the kind of statement we might have seen a century go:

"We produce the world's finest buggy whips and cannot foresee a need to improve their design. Although the market is feeling pressure due to changing economic conditions, we plan to hold the course and will do no further product development. While others have urged us to research new products such as battery powered horns for motor cars, we feel that such expensive speculative ventures would cut too deeply into our dealer margins, and so we will continue to produce what we already know to be the best of class ."

TAG McLaren Audio may survive and even prosper with its strategy for awhile, but the perception among potential customers regarding their future viability is already tainted.

Burke
Grammar and spelling checked in MS Word. If you detect an error, please contact Bill gates.

[KS]

I should have known this would happen the day I purchased mine! I searched for some time for a pre/pro and this one did everything I wanted and does it well. It was either this or pay the extra dollars and get into Theta gear. I decided on TAG because I liked their aggressive product development and access to their forum.

I'll keep the pre/pro for the foreseeable future but won't buy any more of their products, just too much uncertainty.

You really have to respect the approach though. They were forced to announce the situation prematurely because the news got out. Since then they have been on their forum allowing free discussion about the situation. Tag, the parent company, is very healthy and has promised that even if TAG is closed support and service will stay available. I think that is probably the classiest going out of production act in history.

Ken

[Danbry39]

I visited their web site also and really appreciated the fact that reps were still posting and not hiding. It seems that the company has good products, albeit I've never heard any of them. Unfortunately, their business model in the current world economy couldn't thrive.

How is your Tag working out for you KS?




Keith

[Aeromos]

I understand the fact that they're stopping future product development. Was it also mentioned (which I believe is true) that all current productions are to cease?

Tag's CEO saying that they've reached the zenith and can't improve any further so they're halting everything, is a fancy way of them saying they're copping out. It's great that they're still supporting their products with warranty and service and rightly so as they should. However, I can't help but think (as I'm sure others are) that they're getting out of the game because it didn't turn out as profitable as they would have wished. I'm not sure if it's pride or what, that is preventing them to just admit to this fact.

I agree with Lex that they have great products, and that the only thing that prevented them to penetrate the market more was that they were on the pricier side to start and that they were really not filling a niche that no-one else has filled. What they should continue to do though is to find ways to deliver the same quality and cut costs in production which could result in their ability to now lower their prices. With lower pricing they would have a larger audience that could be potential buyers of their world reknowned products.




Aeromos
Enjoy life, it's too short to waste!!
My Collection

[KS]

Keith,
I have an AV32-bp192 pre/pro and have no desire to get anything else. Well I would like the upgrade to the double processor unit that has room equalization. Other than that the sound is as good as anything I've heard and I think I've heard them all. Meridian is very good but to do it well requires a boat load of money. Theta with extreme dacs was my second choice but more costly and they are so slow with upgrades and new technology.

Aeromos,
If I understand the situation TAG currently has a twelve month back up of inventory. If TAG remains viable they will continue to produce current models but R&D has suspended indefinitely. There is a financial review in the next two weeks that will decide the companies fate. I think the comments about "reaching the zenith" were made in an attempt to justify consumer purchases.

It really is sad because the products are excellent and customer commitment was unequaled. Now even if it's decided to keep the business open they would have a very difficult road.

Ken

[Aeromos]

ks,

It is too bad that they've chosen to stop producing a product that obviously many people love. I agree that the road ahead will be a difficult one. The biggest obstacle they will probably face is to win back dealer trust, but most importantly consumer trust. Dealers may have to be forced to discount Tag inventory they have remaining, more than they'd like to in order to move them. Also consumers may tend to be more weary to purchase their products even if they say support will continue. I know that myself as a consumer would feel more secure if a company has a continued interest in R&D to improve their products.




Aeromos
Enjoy life, it's too short to waste!!
My Collection