discrepancies with SUNDOWN AUDIO

[disturbed471985 5,000+ posts]

Mehhh not FLXX dont care...

Them Poly spiders turn you off also??? LOL.... Nomex FTW..

 

[Mitch86 5,000+ posts]

That's my assumption also, but mr rabbit said all orders are pre-paid

You're kind of contradicting.. first you note that Sundown has a huge following, which one would assume means nice profits, on there other hand you are implying they can't pay for a order of a few hundred drivers/amps? Some of the lesser companies may gamble with peoples money and use it to order products while holding a "preorder", but I doubt a established company would do so. That's a disaster waiting to happen. Like you, I'm only going on assumptions though. I just think gambling your whole business on a small preorder run would be stupid to say the least.

 

[Bettr n' Revrse 5,000+ posts]

Them Poly spiders turn you off also??? LOL.... Nomex FTW..

Pssshhhh nahhh its all about that green basket yo!

 

[disturbed471985 5,000+ posts]

Pssshhhh nahhh its all about that green basket yo!

bahhhh i could deal with the green but not sub par spiders... The extra few cents per unit to upgrade to nomex would have been a good idea but u know its all bout the bottom line....

 

[Bettr n' Revrse 5,000+ posts]

bahhhh i could deal with the green but not sub par spiders... The extra few cents per unit to upgrade to nomex would have been a good idea but u know its all bout the bottom line....

Yep just another base woofer...

 

[disturbed471985 5,000+ posts]

Yep just another base woofer...

But it has green basket so thats the selling pt I guess... Plus they are not that cheap in the first place

 

[Mitch86 5,000+ posts]

I have to agree, you're not a business major //content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif
If you're in business to make a profit then it makes little sense to offer products at a discount BEFORE they're even available. I could see discounting old stock to make room for new stuff. But why would you put something new to the market on sale.

I could also understand a brand new company trying to get it's name out there, but with Sundown that's not the case.

selling a few hundred at a smaller profit before they even hit the shelf makes sense to me. Then they arrive and you sell them at normal price. You have profits from hundreds of drivers sold, plus the real world advertisement that it brings. Everyone else buys them for a higher profit margin. You act as if they are losing money by doing preorders. There is still profit being made. Its less profit than normal, but I'm guessing its faster income than selling hundreds of a product for normal price. its a win-win for customers and company imo.

 

[matt_bennett05 10+ year member]

really I thought it was a company created by jacob fuller to offer car audio that performs at a low price?

Perform, yes, cheap, not in my eyes.

 

[disturbed471985 5,000+ posts]

^^^ cheap??? Sundown??? Bahhhhhhhhh almost wet myself...

 

[mlstrass 5,000+ posts]

You're kind of contradicting.. first you note that Sundown has a huge following, which one would assume means nice profits, on there other hand you are implying they can't pay for a order of a few hundred drivers/amps? Some of the lesser companies may gamble with peoples money and use it to order products while holding a "preorder", but I doubt a established company would do so. That's a disaster waiting to happen. Like you, I'm only going on assumptions though. I just think gambling your whole business on a small preorder run would be stupid to say the least.

big following/established still doesn't mean a company has a ton of capital laying around.

Let's say the NS1 is $1k per unit for Sundown to buy them. I would guess he did 50 units, so that's $50k. Add in the other amps he buys and diff sub lines and I could easily see why you'd want to do a pre-order to raise capital to make purchases.

Otherwise why not pay up front and sell them at full price once they arrive.

 

[Mitch86 5,000+ posts]

big following/established still doesn't mean a company has a ton of capital laying around.
Let's say the NS1 is $1k per unit for Sundown to buy them. I would guess he did 50 units, so that's $50k. Add in the other amps he buys and diff sub lines and I could easily see why you'd want to do a pre-order to raise capital to make purchases.

Otherwise why not pay up front and sell them at full price once they arrive.

Again, why not sell a couple hundred units at a discount and make a small profit quickly and then when they come in sell them for more profit? Its selling units fast plus real world advertising. Essentialy, you're still selling the product when it comes in like you're saying, but before hand you're making money too. Assuming they take 50k from the consumer and buy the amps for example, and then the run of amps is bad...there goes your company because you wanted to sell 50 amps fast. That doesn't seem like a logical thing someone with a little business sense would do. Ruining a long term, established company by gambling for a small profit isn't logical. But maybe I'm just reaching and trying to see the good side of things though. //content.invisioncic.com/y282845/emoticons/confused.gif.e820e0216602db4765798ac39d28caa9.gif

 

[denim 5,000+ posts]

This is not directed at Sundown audio products, but PRE-ORDERED products in general.

 

The issues we see constantly with pre-ordered items, is the direct effect on the perceived value, by the customer, of the product. With-out fail, regardless of what brand is doing a pre-order, the moment the pre-order is over, the extensive bitching and whining via email by people wanting the pre-order pricing comes flooding in.

 

There are a couple of problems with this, most customers don't understand that the pricing is set by the manufacturer (not by the dealer), all they see is that suddenly there is a large mark-up on the product that is the same the day before so this turns into most of those customers upset with us because they just see it as if we are trying to rip them off when we are only doing what we are supposed to do. The other problem for us is that since we actually follow the NDA, we are unable to sell below MAP. So the effect of this is the sudden drop off of sales after the pre-order, and mostly much slower sales for the rest of the life cycle.

 

/IMO rant.

 

[pro-rabbit 5,000+ posts]

This is not directed at Sundown audio products, but PRE-ORDERED products in general. 

The issues we see constantly with pre-ordered items, is the direct effect on the perceived value, by the customer, of the product. With-out fail, regardless of what brand is doing a pre-order, the moment the pre-order is over, the extensive bitching and whining via email by people wanting the pre-order pricing comes flooding in.

 

There are a couple of problems with this, most customers don't understand that the pricing is set by the manufacturer (not by the dealer), all they see is that suddenly there is a large mark-up on the product that is the same the day before so this turns into most of those customers upset with us because they just see it as if we are trying to rip them off when we are only doing what we are supposed to do. The other problem for us is that since we actually follow the NDA, we are unable to sell below MAP. So the effect of this is the sudden drop off of sales after the pre-order, and mostly much slower sales for the rest of the life cycle.

 

/IMO rant.

Now that I can agree with 100%. That is a large negative from that stand point. Which would bring me to think that companies that are direct sales could pull this off a little better with a "controlled" release of pre-sale options. While companies that work with a "dealer network" have a harder time trying to pull this off.

I know when I had a basic retail store we had chances all the time at "pre-orders" but were asked not to pass the sale on. It was explained that the offers were only to get new product out into the stores and push sales over the product it was replacing.

 

[07denali 10+ year member]

I recall reading a thread that Jacob responded to himself saying that they do preorders to raise capital due to the large upfront costs required of build houses. He said they have the capital to cover the preorders, but it was in their benefit to raise capital thru preorders so that monies could be used elsewhere, perhaps marketing, research and product development, expansion, etc. The discount they offer thru preorders is made up from interest they would have otherwise paid to a bank, while being able to be more profitable by bringing new products to the market, thru marketing campaigns or thru research and development.

 

[mazdakid 5,000+ posts]

Guy on caco isnt too happy with sundown right now. Think jacob got a little mad and said one more post and hes closing the thread lol.