What really happened with RE?

[flakko 5,000+ posts]

okay i think this needs its own thread.... ill edit my other post but i had a conversation with some people and this is what really happened quoted from my other post:

...(i was told it was fine to release this info) Resonant Engineering was sold because it was goin BANKRUPT. A company goes bankrupt because either thier product sucked or they ran out of money...RE makes an awesome product, they were just hurting financially. it was great and all that RE had pricing like they did, but it wasnt the most efficient price for the company's wellbeing, and those prices are what eventually led to RE's downfall.

Now that they have been bought out with a much more efficient marketing structure, RE has sold more woofers in 2 months than RE has sold in 2 years (IIRC). this has been a major turnaround for RE as a company. if i think of any more info ill post it.

so when you see the higher pricing, think of it as the life blood of a company. Money makes a business go roud. If a company has freakishly low pricing for hte quality (like re has had) they many not be earning enough profit to stay afloat or they will barely stay afloat and the company may not last very long. Its a give and take relationship if you know what i mean.

edit: i find this whole RE story very very ironic in many ways. what has been glorified as the "w7 killa" and had a large fanbase has fallen, and turned mainstream. think of RE as the epic hero with a somewhat tragic ending hehe

Click to read more...

 

[davidfre21 5,000+ posts]

life goes on

and i thought it was just because scott was a sell out //content.invisioncic.com/y282845/emoticons/rolleyes.gif.c1fef805e9d1464d377451cd5bc18bfb.gif

 

[flakko 5,000+ posts]

^^^well i tried not to mention scott but since you did, yea pretty much. lol

i was just getting sick of all the RE bashing without knowing the full story.... but like you said life goes on haha.

 

[djman37 5,000+ posts]

[No message]

 

[azbass 5,000+ posts]

ok

 

[tommyk90 5,000+ posts]

Too bad they aren't going to sell as many woofers like they used to. They basically screwed every competitor out there (the ones that don't get hookups anyways).

There's two ways to have a profitable business (not to say these are the only two ways, just giving examples). One way is to sell a lot of products at a lower profit margin. Here you are focusing on moving as much product as you can. Or you can go the higher road and sell less woofers and have a higher profit margin.

Which way you go depends on the company really, but I feel that RE really made a bad move by selling and jacking prices sky high. Hell, everyone knew that RE had killer prices. I'd be willing to bet that if RE had increased their prices by $50-75 per driver (instead of selling out) that sales would not have slowed down one bit.

And, IMO, the reason that RE sold more woofers in the past 2 months than they did in two years is most likely because RE is focusing on DEALERS now. I'm going to assume that in order for a dealer to either become a dealer or place an order, that a certain quantity would have to be purchased, thus "increasing" sales.

The fact of the matter is that RE sold more woofers, but most likely not the dealers who bought them.

This is, of course, all IMO.

 

[davidfre21 5,000+ posts]

Man ive kept my opinion to myself to dam long...

I like you cant stand the RE bashing, when the problem lied with one person who isnt even associated with the company any more. And what made me even more pissed was all the people who are hating on RE for their high prices are now on the nuts on of FI audio... Irony @ its finest, so what happens when it happens to Scott again? Time to hate FI?

 

[flakko 5,000+ posts]

people who are hating on RE for their high prices are now on the nuts on of FI audio... Irony @ its finest, so what happens when it happens to Scott again? Time to hate FI?

ha! thats exactly what a certain someone said about Fi. it aint gonna last long.

 

[davidfre21 5,000+ posts]

Lastly I wonder who FI's build house is? I have a pretty good guess, and would be surprised if it wasnt them...

 

[Beat_Dominator 5,000+ posts]

[No message]

 

[flakko 5,000+ posts]

There's two ways to have a profitable business (not to say these are the only two ways, just giving examples). One way is to sell a lot of products at a lower profit margin. Here you are focusing on moving as much product as you can. Or you can go the higher road and sell less woofers and have a higher profit margin.

i misread your post

And, IMO, the reason that RE sold more woofers in the past 2 months than they did in two years is most likely because RE is focusing on DEALERS now. I'm going to assume that in order for a dealer to either become a dealer or place an order, that a certain quantity would have to be purchased, thus "increasing" sales.

well dont you think that dealers might be selling them and ordering more? this isnt the internet anymore...a much larger customer base

 

[Raven 10+ year member]

I have felt nothing one way or the other. I haven't owned Fi or RE, and at this point I doubt I ever will unless it's used.

It is useful to know exactly what happened though.

 

[tommyk90 5,000+ posts]

and thats with the price hikes.

edited

 

[flakko 5,000+ posts]

Lastly I wonder who FI's build house is? I have a pretty good guess, and would be surprised if it wasnt them...

ill ask and see if i find anything out...i bet it is.

 

[tommyk90 5,000+ posts]

i misread your post


well dont you think that dealers might be selling them and ordering more? this isnt the internet anymore...a much larger customer base

There's no telling if the dealers are ordering more unless some dealers chime in here.

It could be that just more dealers are popping up...

And even if they did sell more woofers now than in previous years, whose to say that pattern will continue?

They can sell an asston now and not sell anything for a year.