Parasound and Good Guys Part Company

[goldear]

San Francisco (3/23/05) - Parasound, one of the world's premier manufacturers of high quality audio and audio/video components, has announced that it will end its five year business relationship with Good Guys, effective April 25, 2005.

"Our experience as a vendor to Good Guys has been positive," said Richard Schram, President and founder of Parasound. "However, we now wish to focus our attention and resources on the independent specialty dealers and custom installers who have made great contributions to our growth and success."

Founded in 1981, Parasound Products, Inc., is a privately owned U.S. company that specializes in providing affordable audio and home theater components to the critical listener. Parasound's products are available from quality audio/video retailers, and select custom installation specialists. For more information, visit www.parasound.com or call 415-397-7100.
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While I can understand the desire to seperate the Parasound brand from the mass-marketeers out there, I do know several people who had easy access to the product because of this policy. On the other hand, I also saw the high-end snobbery of some (especially at AVS) who wondered just how good Parasound could be if Good Guys was carrying the brand. Wise decision?

[will1066]

If indeed Parasound wants to move their brand image upward, then they should stop making their products available by mail order, too. <--- not meant to be a flame, just based it on the previous statement.

[Andrew M Ward]

Dear Goldear...

Quote: On the other hand, I also saw the high-end snobbery of some (especially at AVS) who wondered just how good Parasound could be if Good Guys was carrying the brand. Wise decision?

Regarding your feelings above:

An example of how dealing with mass-market chains can hurt, would be that Parasound waits eagerly (presumably) for their quarterly purchase order from Good Guys, that order is probably a huge percentage of their business plan for the next quarter.

Are you with me so far...

Good guys wants to make money on this relatively expensive line so they ask for a larger discount on their order (certainly not uncommon) after a few years of this the discount keeps getting larger and the anticipation and need for the "big" good Guys order becomes more and more important every quarter.

Still with me...

Soon all the margin is driven out of the product and the quality suffers because Parasound needs to find cheaper ways to Mfg. the goods to recapture the lost margin.

It's a vicious cycle and has been known to destroy good companies.

None of this may apply to Parasound and Good Guys but after 5 years I would guess it's becoming an issue... Just a guess

Just my 2 cents

[bhuskins]

If indeed Parasound wants to move their brand image upward, then they should stop making their products available by mail order, too. <--- not meant to be a flame, just based it on the previous statement.

Audio Advisor is the only authorized Mail Order company out there allowed to sell Parasound. They also charge full retail. I don't get what you're trying to say.

Brent Huskins
Media Design
HTGuide Sponsor

[nicholtl]

It could be because I'm young and naive, but I think the decision to split off from Good Guys is a wise decision. Whether or not we choose to admit, high-end "snobbery" is very much a part of the business, as it is with anything retail. In our capitalist society, the relationship between brandnames/where purchased from ratio is synonymous with the quality/price ratio.

Since Parasound is ultimately a brand that caters to, relatively speaking, a niche market, being available in a mass-market store only hurts the reputation, as many would say with products being sold at Best Buy, Tweeter, Ultimate Electronics, etc.

Supply and demand at it's best, right? Because, as we've already noted from the AVS peeps, the general consensus is that a high-end product is only truly high-end if it is difficult to obtain. To be able to tell friends you purchased the "cool silver unit with blue lights" from a specialty dealer, as opposed to the Good Guys 8 miles from your house.

Some would say it adds to the pride-of-ownership. I'll be the first to admit: it does for me.

[Andrew M Ward]

Huh?

Audio Advisor is the only authorized Mail Order company out there allowed to sell Parasound. They also charge full retail. I don't get what you're trying to say.

Brent Huskins
Media Design
HTGuide Sponsor

Well,
I think he's trying to say that audio mail order companies have reputations for being sleazy.

Associating with mail order companies (regardless of claiming to sell only at retail) is a risky business, surely you see that?

No?

[bhuskins]

Not when talking about Audio Advisor...most mail order companies sleazy, yes...but AA operates on quite a different model than most. They are really only geared to support people that don't have a local dealer and charge full price in the process.

Brent Huskins
Media Design
HTGuide Sponsor

[Andrew M Ward]

I've been there, it's nice...

Not when talking about Audio Advisor...most mail order companies sleazy, yes...but AA operates on quite a different model than most. They are really only geared to support people that don't have a local dealer and charge full price in the process.

Brent Huskins
Media Design
HTGuide Sponsor

I hear you brother!
I've been there a few times
It is a nice store and has great employees and excellent service...

regardless of all that; they need to be extremely careful, may manufacturers won't tolerate much monkey business, no matter the guise under which it is perpetrated.

[will1066]

Well, like I said, it wasn't meant to be a flame bait. I have bought stuff from Audio Advisor (lots of stuff, in fact), and I didn't know they were the only catalog firm to offer Parasound.

[Andrew M Ward]

I can come across too stern...

Well, like I said, it wasn't meant to be a flame bait. I have bought stuff from Audio Advisor (lots of stuff, in fact), and I didn't know they were the only catalog firm to offer Parasound.

Don't pay too much attention to me, I come across more serious in print than if you were to see me face to face... :lol:

[Chris D]

Well, for me, I wonder if this is going to hurt Parasound sales, at least slightly. Good Guys, while by no means a "boutique" vendor, does seem to be a step up from the likes of Best Buy and such, which really only carry mass-market products.

Because of the numerous Good Guys outlets, I think it was nice to get the Parasound brand name out there in the public's eye without sacrificing much of the "prestige" of having high-end equipment.

In the end, it certainly isn't going to spell doom for Parasound. (and certainly not for GG, either) In general, though, I fall into the camp of "bring quality A/V to Joe Public and PROVE to him how good it can get!" That's been the whole focus of my home theater and magazine project.

[iceman]

Being that I used to be an employee of Good Guys, I thought that I would chime in. I left the company shortly after Comp Usa purchased it (but not before buying an entire Halo setup). Good Guys did not have the clientele for Parasound equipment for the most part. They were more about plasmas and "Blose", and lets not forget monster cable. CompUSA is basically converting Good Guys into hybrid stores with Comp USA in them, high end audio is the first thing to go. They have done unspeakable things to their loyal employees and I am personally glad that Parasound parted from Good Guys. I thing that this is a move for the better, not to associated with a company that will not survive another 5 years. Not trying to sound bitter, just stating facts as they are.

[Chris D]

Ah... you know, I think you're right. I thought I noticed a shift in Good Guys towards more mainstream public products, beginning with carrying actual movies in the store, not just equipment.

[r100gs]

A Parasound A21/P3 or a Musical Fidelity A-5 was on my wish list. I was surprised to see Parasound in GoodGuys. Luck have it, they were closing out the line and I scored the A51 for $1300 and the P3 for $500. No compliants, right time, right place.

[nicholtl]

A51 for $1300?!?!?! 8O 8O 8O 8O

Or did you mean A21 (still a great deal!)

[r100gs]

A51 for $1300?!?!?! 8O 8O 8O 8O

Or did you mean A21 (still a great deal!)

Opps! A21