# Emotiva Says Move to Retail Stores Will Benefit Brand



## Todd Anderson (Jul 24, 2009)

Founded in 2004, Emotiva has spent the last 11 years running a direct-to-consumer operation. Removing the middleman has allowed the company to offer quality AV electronics at reasonable prices. In a surprising shift, the company recently revealed a new retail-oriented distribution strategy that it says will lead to positive growth without raising costs to its customers.










Going forward, Emotiva products will be available through select retail operations (both brick & mortar and online sites) and Emotiva’s current online store that has dutifully served over 60,000 registered customers to date. Normally, one would assume that inserting a retail distribution channel would raise overall product costs to help cover additional margins for profit. After all, brick & mortar stores have overhead that isn’t cheap. But Dan Laufman, President of Emotiva, says the company’s current production scale and US-based manufacturing initiative will allow the company to make this move without detriment to consumer wallets.

“Since we first established Emotiva 11 years ago, dealers have continually expressed interest in carrying the brand, but until now it would have been challenging to do so without raising our prices at retail,” said Laufman. 

Emotiva’s founding principal was to deliver high-end gear for less by streamlining manufacturing and sales. According to the company, their choice to begin with a direct-to-consumer model was a no brainer and has allowed them to come “full circle” and hit retail shelves. Laufman emphasizes that Emotiva’s efforts to move manufacturing to Tennessee has paid big benefits and will allow the company to alter their sales strategy without hiking prices.

According to an interview with Twice, Laufman says Emotiva will be picky about which dealers can participate. He estimates that 30 to 50 retailers will be involved by the end of the year. In order to keep customer service and support at a high-level, Emotiva will train dealers through sales materials and training events held in Nashville, Tennessee.

Official word detailing specific retailers expected to be involved hasn’t been released yet. Dealers interested in learning more about Emotiva’s new program should contact Nick Kaumeyer, Dealer and Sales Support, Emotiva, at 615-790-6754, [email protected]. 


_Image Credit: Home Theater Shack
Logo: Emotiva_


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## thrillcat (Mar 25, 2014)

Interesting move. Though prices could stay the same - Oppo didn't raise prices when they started selling through Magnolia.

I see it as a way for retailers to boost installation contracts, etc. They'll get a slight discount from Emotiva (probably similar to Emotiva's now-defunct "E-Club" which was a 10% discount on everything for a small annual fee), they'll sell at the same price as the Emotiva website, but offer custom install and training service to make their profit.


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## Todd Anderson (Jul 24, 2009)

thrillcat said:


> Interesting move. Though prices could stay the same - Oppo didn't raise prices when they started selling through Magnolia.
> 
> I see it as a way for retailers to boost installation contracts, etc. They'll get a slight discount from Emotiva (probably similar to Emotiva's now-defunct "E-Club" which was a 10% discount on everything for a small annual fee), they'll sell at the same price as the Emotiva website, but offer custom install and training service to make their profit.


Most certainly. Emotiva is obviously offering discounted prices and the retail stores will do their best to pad their sales with all sorts of add-ons to add dollar value to their sales. Extended warranties, install, etc.

I think this is a great move for Emotiva, and love the fact that they believe nearly 70% of their manufacturing will be on US soil within a year's time (give or take).


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## thrillcat (Mar 25, 2014)

Todd Anderson said:


> and love the fact that they believe nearly 70% of their manufacturing will be on US soil within a year's time (give or take).


Absolutely!

My Emotiva gear is not without its 'quirks', but the value and performance is really second to none.


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## Blacklightning (Nov 22, 2011)

It is a great Business move in this day and age of audio.
I hope I can pick up my models before the next set of models come out.


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## bkeeler10 (Mar 26, 2008)

Hopefully this does not lead to price creep over the next few years. Most dealers are accustomed to buying product from manufacturers at 50-60% of the MSRP. I doubt Emotiva can currently offer margins that high. OTOH, if this results in more sales and greater economy of scale for Emotiva, perhaps they can improve dealer margins over time without substantial MSRP increases. Interesting move.


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## tesseract (Aug 9, 2010)

Economies of scale combined with increased visibility should help Emotiva succeed at this venture.


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## Todd Anderson (Jul 24, 2009)

bkeeler10 said:


> Hopefully this does not lead to price creep over the next few years.


It seems impossible not to happen...but if they can move enough volume, it should negate the need to increase price.


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## tesseract (Aug 9, 2010)

I just noticed that Emotiva is having a sale. The XPA-3 I've been looking at is now $80 off.


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## Todd Anderson (Jul 24, 2009)

tesseract said:


> I just noticed that Emotiva is having a sale. The XPA-3 I've been looking at is now $80 off.


Time to buy, Dennis! Time to buy!


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## tesseract (Aug 9, 2010)

Todd Anderson said:


> Time to buy, Dennis! Time to buy!


Right you are, Todd. Done and done, I even picked up their new solid core RCA cables to hook it all up.

It will be a tight fit into the A/V stand, they are nice enough to shave the feet down to give adequate clearance for heat dissipation. That is something you won't be able to have done by the retailer, it is good that Emotiva will continue to offer direct from the factory sales.

This is my first time ordering from Emotiva, it went quickly and painlessly. I am looking forward to adding 4-5 dB of headroom to my system.


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## kingnoob (Mar 12, 2013)

Cool!! good for Emotiva, I want to buy a amp of theirs someday. So many great reviews!

Brick & morter stores definitely would sell a lot more amps!


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## fschris (Oct 31, 2009)

i really like emotiva and they have some solid gear. i have a couple of the amps they sell and the UMC200. I hope to upgrade to the new flagship XMC in a couple years. i hope this is a good move for them. hopefully this will be a win win for everyone.


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## chashint (Jan 12, 2011)

I don't know where they are going to fit in the brick & mortar retail chain.
The mass market is AVRs and I really can't see well heeled audiophiles trading in their boutique electronics to give Emotiva a spin.
I don't know what margins are in this segment but it stands to reason you make more money selling higher priced electronics vs lower priced.
Maybe additional online retailers are good?? But why buy third party if the price is the same? At least if you buy direct there's no place for finger pointing if something is not right.
It will be interesting to see what happens.


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## JBrax (Oct 13, 2011)

Why buy third party? We're a society of convenience and want it now. If I could buy said product now and touch, see, feel, and you get the idea. Same price and same warranty, well to me that's pretty much a no brainer.


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## Diamonddelts (Jan 28, 2011)

Prices will go up in a retail environment. There is no getting around that. Retailers are going to want Emotiva product at a discounted rate and the decrease in profit margin will have to be offset with a increase in cost. Just watch and see.


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## JBrax (Oct 13, 2011)

Diamonddelts said:


> Prices will go up in a retail environment. There is no getting around that. Retailers are going to want Emotiva product at a discounted rate and the decrease in profit margin will have to be offset with a increase in cost. Just watch and see.


 If that happens then people will buy direct. Easy fix.


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## fschris (Oct 31, 2009)

i am surprised maybe they would not have just made a deal with installers and boutique shops. that may be what they did. i highly doubt you would walk into a best buy, FRYs, walmart and see a XMC1 on the shelf!

Hobbist/Enthusasit i bet buy online more than anywhere else. In store sales will be executives and Professionals who have way too much money  I picture Gordon Gekko getting on HTShack to learn about where to purchase a great amp for a good value.


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## Blacklightning (Nov 22, 2011)

chashint said:


> I don't know where they are going to fit in the brick & mortar retail chain.
> The mass market is AVRs and I really can't see well heeled audiophiles trading in their boutique electronics to give Emotiva a spin.
> I don't know what margins are in this segment but it stands to reason you make more money selling higher priced electronics vs lower priced.
> Maybe additional online retailers are good?? But why buy third party if the price is the same? At least if you buy direct there's no place for finger pointing if something is not right.
> It will be interesting to see what happens.


One word. Upsell.
All the AVR's will now be "underpowered" and the sales person will say you are wasting your money on those speakers if you do not have 100+ pure watts going to them. The sales team will now know all about power supplies and they will tell the customer that a 125watt AVR is at 40Watts all channels. 



JBrax said:


> If that happens then people will buy direct. Easy fix.


Most companies will make a deal that the direct price will not undercut the retail.



fschris said:


> i am surprised maybe they would not have just made a deal with installers and boutique shops. that may be what they did. i highly doubt you would walk into a best buy, FRYs, walmart and see a XMC1 on the shelf!


My guess would be that they would have the lower end products.


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## chashint (Jan 12, 2011)

I will be surprised if there is a market for Emotiva outside of the enthusiast market.

If the speculation is 'it's not going to be Walmart or Best Buy' who do you think it will be.


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## class a (Oct 22, 2010)

Recently my local dealer picked up the SVS sub line. Prices are exactly what they are on-line. According to the owner margins for both the SVS and his store are quite good. Selling on line is a clever marketing tool to make the consumer think thay are getting a better price. I'm sure if you look at the P&L statement you'd be quite surprised.:T


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## Blacklightning (Nov 22, 2011)

I would think if you ordered 20-25 subs from SVS you would get a great discount too.


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## class a (Oct 22, 2010)

Blacklightning said:


> I would think if you ordered 20-25 subs from SVS you would get a great discount too.


Don't think he ordered that many but I'm sure he got a good deal equal to other audio firms. They are selling well. Plus there is a certain block of the potential customers that feel uncomfortable buying a high priced audio product online w/out seeing or hearing it. Good move for both EMO & SVS it should increase their overall sales.:sn:


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