How SnapAV Keeps Prices So Low

I have heard all the whining and complaining about SnapAV and all I can say is we would not be the company we are today wihtout Snap AV. To them, I wish all the success in the world! (to all those complainers I say your arrogant or clueless).

Good for them. Really.  I can’t think of a single manufacturer or distributor that gets it “right” as often as Snap. I’ve tried most of their products across all of their lines…they fit the niche perfectly. I agree, they have the best website handsdown for this type of company and likely one of the best out there in general. Working with them is one of the easiest experiences I’ve had over the last 15 years in this industry. Keep up the good work.

How do they keep prices low and margins high?  Cheap products at inflated prices.

I might be more impressed if 40% of what I bought didn’t break.

For me, this company simply proves that you do get what you pay for.  You pay cheap prices, you get cheap stuff.

How do they do it?
No engineering, copy cheap product, let someone else pay for developement.
The product is crap.
Find the cheapest Chinese labor.
hey it’s just Chinese
Who wins, not the consumer, just the integrator making huge margins selling junk who will leave the business leaving their customers hanging with problems.
hey it’s just business.
Dealers become the Wal-mart of Custom

Agreed Markb:

They’re everything that’s wrong with American business models today.

How to make short run money these days:

1. Don’t employ anyone in the US in “real” engineering or manufacturing roles.

2. Find and use the cheapest OEM’s technology from China then “bagineer” it in a couple cubicles here in the US.

3. Import the junk and slang it out to the masses.

4. Have no local support and the lowest possible cost structure.

5. Post up some big top line grow numbers for a year or two then sell the company to let some else deal with the fall out.

They’re innovated nothing and rely on a communist country and slave labor to sell you cheap gear.

For the last 2 post. Your idealism sounds like some jackass collage professor. You obviously don’t live in the real world. Do you ask the questions you just listed of the manufactures you purchase from? I doubt it! Do your customers ask the same questions or qualify the products and business you choose to support? I doubt it!
What company doesn’t search for the lowest cost sourcing of products? You would be a fool not too. 
Most so called manufactures don’t actually make anything, it is purchased for resale. Designed and sourced from off shore suppliers that is the business model.
Before returning to an Installing CI company I worked for a manufacture in this industry for over 15 years and can tell you almost no one owns the factory their products are built in. Its not feasible. Does that make them the devil? No in fact that would put them out of business or make them not competitive. The only time you stop buying low-cost is after you get burned on the quality. I am a current SnapAv dealer and have not experienced any quality issues. In fact recently have had several issues with one of the largest name brand speaker manufactures. The biggest advantage I have is Snap does not allow or sell their product on the internet unless it is at a high MSRP and they do not sell to trunk slammers. So what if the product is already being built and they just found the source, its offers me the ability to cut out the middle man and make more money. My bet is the ones making all the bad comments here are Snap competitors or have not even purchased product from Snap. I get good service from my rep, they are responsive when I need it, the product is solid and I like the business model and people I deal with.  How about some posted facts on products or problems from actual customers? $50 million in 5 years in this economy? yeah they and the business model suck!

Mark is a fraud.  40%? LOL. You have to lie better to be believable Mark, otherwise you look the fool (or a competitor).

Jeff, Mark what world do you live in where China is not a maker of the majority of products? Where are the products you sell made? What do you prefer - high priced made in China to sell to your customers or fair priced made in China to sell to your customers? Your arguments hold little water. Sure we all yearn for the day when everything was made in the USA but those days are gone. Sorry you didnt realize that.

Jeff, Mark and Fred…please let us all know when you are able to source all of your install parts from the good ol’ USA and still stay in business.  We won’t be expecting to hear from you soon.  The business model you dream about is rarely available in this day and age…that is unless you are Amish.

I wonder how much Snap AV paid CE Pro to create this article/advertisement. There is no redeeming value to Snap A/V in the consumer electronics industry other than just PRICE. If everything was based on price we would all be driving Kia’s. I think we all remember a car back in the 80’s called the YUGO. It was the lowest price out there and where are they today?
Snap AV The YUGO of the consumer electronics industry.
By the way, it’s a shame that all Snap employees can do all day is to monitor this story and try to discredit anyone that disagrees with them.

Yes, the products in the Technology Industries in large have to be made in China (or similar slave labor country)...especially for a small start up like Snap, but I too will agree that they’ve innovated nothing mechanical or electrical. At least others in our industry have innovated and developed products and idea’s here in the US, and then use China for only production.

Snap is not a technology company by definition. They’re been a sourcing and assembly company from the very start. They source whatever they can get their hands on cheap…just look at there product portfolio, there’s no rhyme or reason to it. 

Their innovation, creativity, technical prowess and product capabilities are 100% in the hands of the Chinese ODM’s market. 

Companies with little to no innovation won’t last long in the tech space, and unfortunately for Jay F., aren’t worth much in a valuation…

The answer here is pretty simple, if you don’t like it, don’t buy it. If you are in this business to feel good rather than make money, then good luck.
What is wrong with KIA? have you driven one? I have a $40k top of the line (non KIA) SUV which has been in the shop to fix 7 items in the first 10K miles. My KIA has been running for 2 years solid with NO problems. Wal-Mart of CE? Have you seen the revenue of that company? As a stockholder I would be pretty happy with whatever it is they do, however they do it. The number one rule in Business is MAKE MONEY. If this is not your # 1 rule, then you have a Professional HOBBY!
If you ran any large public company with this stupid attitude, you would last about 10 minutes.
is it as “plush and nice” - NO, but that is not why I bought it. Its gets me from point A to B, much like the consumable goods SNAP sells.
Why does TV mount and In-wall speaker have to cost 100% more than a comparably spec’d competitor? They are not making projectors or Surround Pre-amps, they make the “hang and bang” products that everyone of use that are basically a commodity.
I have a complete media room of SNAP speakers (650LCR) and dragonfly screen with a Marantz Amp and it is awesome. I have had friends who are dealers come and blind review the setup and they are amazed when I tell them what it is.
Shut the HELL up already and do what you think is right.
If you can survive selling the10 products made in the USA, then great! Does not make you smarter than us, just able to live on lower margins.

dmwerner and Today Kid. Are you a CI? If so are you an approved snap dealer or ever use the product? How many installs do you do in a year? I am and do over 500. Distribution has tried direct source around manufactures now for several years. Snap just did it better buy not reselling brands and offering me the Improved margin. Again idealism in your comments is not going far with anyone that owns and operates a install company trying to compete in a market with Internet sales and low margin CE products.

I come to Cepro to research how I can improve my profit, process, product and learn from my peers. The negative post seem to offer no value or insight. I do believe in supporting companies investing in our industry, the snap model is just different than some of the OEM brands. Direct sourcing happens everywhere in every industry. Name a national chain store in any industry that does not have a house brand? Food, electronics, hardware, grocery, etc. It is a sustainable scalable fact and business model that snap did not invent. Just one I can profit from or choose to try to discredit based on conjecture. Customers expect value I need profit. If that cuts out the 50 point margin from the brand manufacture or the additional 12 to 20 points from distribution (that’s on top of manufacturing cost) then that is what I need to do for my business. If someone thinks that is somehow going to cause the CI industry to collapse then explain why it has not happened already given this is not the first example of direct sourcing and certainly not the first in our industry or the history of electronics.

Doug,
If you say that Snap is so great with their low price points, then why do you connect it to Marantz? You should sell the cheap Amp made by some off the shelf company as well. (why do you exist when it could be done by a homeowner) You are talking out of both sides of your mouth. You make it sound like Marantz, Boston Acoustics, Klipsch, KEF and the rest should close their doors.

Because snap probably didn’t have the Marantz model yet!
maybe in Texas the customers haven’t evolved to shopping on the internet and knowing that every brand you listed is available at a much lower cost than CI’s can sell it at. using Snap alows us to make up the margin lost on the brands that continue to alow thier products to be sold at any price to anyone.