PS Audio going to direct sales only

I don't see this as a benefit to the end user as they claim.

Is PSAudio going direct sale only?

 

I know this since last month from my local dealer.
I don't like this development as I have received great support from my dealer and I have a great relationship with him. He is always there for me to assist me with everything I need and always gave me a great discount.
Is PSAudio going to reduce the prices now that they go with the selling direct model?

 

Bro

In my case and IMHO, I do. I get to try it in my system maybe/probably get a restocking fee if I send it back and all is well. I'm probably oversimplifying things, but if the things that Paul says are true then its a win-wing for the consumer. I purchased my Wyred4Sound components dealer direct and it was a great experience talking to EJ and explaining my needs and wants which were all exceeded. But the only caveat is that both of my items took more than the 30 days to reach what I would call optimal performance.

M~

 

I like direct sales companies like Schiit and Headamp. You're getting a considerable savings from not having the distributor and dealer markup. I think more young people (if the threads at Headfi are any indication, where the average age is significantly lower than other hifi forums) are into this type of business model as well. I see it as PS Audio making a progressive change with the demographic and future sustainability of their company. I think the resale value is pretty decent on this type of gear as well. Anecdotal- I bought a B-stock Yggydrasil DAC, didn't think it was that transparent and sold it for less than 5% loss within a couple of days of listing.

Someone mentioned Zu Audio as being direct sales only in that PS Audio thread, I was not aware they were. I don't like the sound of their speakers, but to me they have always felt like one of those companies that were "hip" to current trends.

 

It will be interesting to see the price structure after the transition. Personally, I do not feel one will see much in a way of current product lower prices. In some cases dealers were knocking 30-40% off PSA gear. PSA is not suddenly offer an $8,000 amp for $5500.00. I'm not saying PSA is in the same league, however, could you imagine McIntosh direct selling 275's for $2800?

 

PS Audio has the biggest, by far, mark up of any high-end company of the past forty years.

Their six thousand dollar preamp sell for four thousand dollars. Similar mark-up is present in their other items. So what now, are they going to get rid of those insane mark ups or not?

I like their gear (that preamp is amazing) and they have great service but their pricing is stupid beyond belief. And Jesus Christ someone tell grandpa he's gone senile and should stop making those idiotic youtube video's seven days a week.

 

It will be interesting to view the pricing structure. In the posted link it seems like Paul is trying to get ahead of this issue by mentioning how much more costly the new approach will be for his company... I like PS Audio products and respect their approach to the industry, I hope this works well for them and their customers.

 

Margins are thin all over.

 

There are not that many stereo stores anymore, let alone high end stereo stores.

Even though are they going to stock all of PS Audio's products?

With an Internet Direct sales model, prices can be reduced by eliminating the middle man and providing a quality product at a factory direct price.

I don't see this as anything but a win-win for the consumer.

It has worked well for Emotiva, when there was no other similar product line doing it.

Cary Audio also has adopted this sales model.

Many audio products are a small cottage industry and factory direct makes a great deal of sense to me.

 

I mostly agree. Dealers in this market and many others, though, provide a service that's being lost. Local display, demo, touch and feel, handholding, etc.

But as I mentioned previously, margins are thin, and consumers are no longer willing to pay for that stuff.

 

PS Audio already sells direct with a 30 day trial at full retail and I don't see them cutting prices. That is why I do not believe their move is for the benefit of the end user.

What this move will do in theory is put more money in their pockets, but that depends on the volume of sales, which could drop considerably.

 

Aren't they in business to make money?

M~

 

If they want to move more gear, they will drop prices.

 

Tell us how you really feel.

 

Nobody is going to pay them the MSRP or anything close. If I wanted PS Audio gear (and I don't) I could easily get a 40-50% Discount...around 3K for their transports and dac. Im sure most people are use to at least a 20-30% discount. If they don't lower their MSRP considerably when they go Direct they wont be in business for very long.

 

LOL. The wise audio sage....

 

PS Audio's bottom line may not be impacted (or could improve) but often dealers rely on trade ins to fuel sales. Direct buy eliminates the trade-in customer.
Not interested on PS stuff so all the best to them.

 

That's on them. It's their business, they have a right to run it as they see fit. The market will be the determinate as to whether they succeed or fail with their model. I don't have any skin in their game, so I don't have an opinion about how they do what they do.

M~

 

It's clear if you read Paul's comments in the thread that was linked to earlier that they won't be lowering prices. There are costs associated with this move and they are aware of the second hand value of their equipment for current owners of PS Audio gear. I guess the bottom line is that if you liked the gear for the price it sells for at retailers, then you shouldn't have an issue paying the same price direct from the company.

I don't think this is necessarily a good or bad move; it all depends on their execution. There are companies that sell direct only that are successful, and of course others that sell through retailers that are successful. It sounds like they have a good understanding of the things they need to consider, and this was a decision that was carefully made.

I have to say that my PS Audio Dectec (bought last month) is really great. The build quality is superb and it really does sound like the noise floor in my system has dropped noticeably.

In the thread that was linked to earlier on PS Audio's site, Paul mentions they have a trade-in program. And here are details: Trade Ups

So trade-in program, trial period, great customer service, easy access to the owner of the company; if they can keep their product in view of consumers and of course if they can make great products, there is probably no reason why they can't be successful.

 

I've never actually heard any PS Audio products and unless I buy one directly, I guess I never will. Do they have a particular sonic characteristic?

 

Paul has done some pretty good marketing getting his name out there with his regular Q&A on Youtube and his really interesting autobiography 99% True. I'm not really in the market for expensive high end gear though.

 

But in the case of Head-Fi, they have several CanJams annually, plus local headphone meets, which gives consumers a chance to audition equipment before purchase (and companies like Schiit, Headamp, etc. all participate).

While younger consumers may be more used to a direct-sales model, they still bitch-and-moan at the lack of 'show specials' if their favored manufacturer(s) doesn't offer such a deal.

Maybe, maybe not. It depends on the product, its complexity, etc. All the technical support, hand-holding, etc. now switches from the dealer to the manufacturer. If you make power amps., you may be able to get away with minimal support, as the product (provided it is reliable) should be set and forget. The situation can be very different for a computer-audio-based product, where you may have to support different operating systems, different playback software, different ways of attaching storage, etc., etc.

 

So a PS Audio product one could purchase through a dealer for $4,000 (with discount) will now cost $6,000 buying direct?

This makes sense for consumers how?

 

They could still take trade ins even going as direct marketing. SVS takes back product and means they just create an "Outlet/Used" section to their website, either that or just resell it on ebay/amazon/audiogon.
Trade ins to the mfg never yield you the best price, selling it on your own will, but its an option for those not wanting to deal with audigon or such.

 

Where did you read that prices will behave like that? I think it remains to be seen how they handle MSRP and the discounts that are usually given at retailers.