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Paradigm, Anthem Stick with Custom-Only Biz Model
Dealers, meanwhile, got bombarded with messages from competitive manufacturers that vowed to stay “true” to the custom market. One of those competitors was Paradigm, which sent a message to dealers titled, “Paradigm Remains Committed to the Specialty Business Model.”
In the notice (reproduced below in full), Paradigm criticized vendors that “eschew longstanding commitment to the specialist A/V retailer … in search of greener pastures” that is national retail distribution.
The company goes on to tout its continued commitment to custom integrators, claiming Paradigm is “the largest remaining specialty dealer option” for loudspeakers.
Paradigm marketing director Mark Aling recently told CE Pro that B&W and others of its ilk are “definitely leaving holes we’re willing to fill.”
The same goes for receivers offered by Paradigm’s sister company Anthem.
“I think receivers are going to be the next big thing,” says Aling. “We have such a positive reputation with our processors. If you look at the independent dealer, and what they have for receivers, they don’t have any protected lines. We offer a protected product with the Anthem name behind it.”
At CEDIA Expo 2010, Paradigm will release a completely new line of speakers that “dealers have always wanted – something that separates them from the big box” retailers, says Aling.
CE Pro has the scoop on that new speaker line. Look for it in the September issue of the magazine.
Paradigm Letter to Dealers
Paradigm Remains Committed to the Specialty Business Model
To Our Valued Partners:
There is a saying that goes “May you live in interesting times.” Some say it is a curse, others consider it a blessing. Whichever interpretation you choose, there is no denying that we are definitely living in very interesting times.
The growing trend to eschew longstanding commitment to the specialist A/V retailer and join the parade of brands that have sought national retail distribution in search of greener pastures continues to send shockwaves through our industry.
For many dealers, the sale of premium limited-distribution brands is a major source of income that offsets the declining margins in flat panels and other commodity-driven products. The loss or significant reduction in that income couldn’t come at a worse time as every hard-earned sale matters more now than ever to the specialist dealer.
In times like these, it is important to know which partners are firmly committed to your ongoing success. Paradigm and Anthem are such partners. For nearly 30 years our alliance with specialist A/V dealers has been the cornerstone of our business philosophy. Despite recent market conditions and widespread closing of A/V stores, we have not shifted strategies or looked to other channels. During much of this time our sales have remained strong which we attribute to valued relationships developed over the years with our dealers and industry partners and to our continued efforts in providing innovative, high-performance, high-value solutions. Paradigm also remains focused on upholding its reputation as the top brand for price and value.. No other manufacturer comes close to our record of winning this prestigious Inside Track Best Price/Value award twenty times. Now, more than ever, customers are seeking out those products and dealers that offer them true value.
Paradigm and Anthem remain the brands that best fit the specialty dealer’s unique advantage; we have the complete sound solution, no matter the aesthetic need. We continue with policies and incentive programs that support the needs of our dealers and partners in the industry. Paradigm is also the largest remaining specialty dealer option.
In the coming weeks and months we will introduce new, exciting products and business enhancement programs to build on our already solid foundation. We look to our supporters in the industry to join us in a firm commitment and ensure a vibrant and progressive specialist A/V industry, providing the best experience for every customer, every time.
Scott Bagby
Chairman of the Board
Paradigm Electronics Inc.
Tim Valters
President and Chief Operating Officer
Paradigm Electronics Inc.
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Article Topics
News · Product News · Audio · Receivers · Speakers · Big-Box Retailers · Spotlight · Speakers · Paradigm · Bowers & Wilkins · Distribution Model · Anthem ·About the Author
7 Comments (displayed in order by date/time)
For now.
Be assured, I’ll be the first to report any dissension amongst the ranks…
Also remember, dealers are finally holding mfg’s to a higher standard of loyalty if they want us to support them. The days of, “turning a blind eye,” by reps & mfg’s to dealers who don’t play by the rules are almost over.
We made them, we can break them.
Paradigm, Anthem Stick with Custom-Only Biz Model = Biggest Joke I have ever heard, and very hypocritical! Sixth Avenue is a dealer! They are the worst, and dirtiest A/V chain in the NY Metro Area! That letter makes me laugh! They are trying to make the case against the B&W Group for opening up Magnolia as a dealer! Magnolia is clean business, and does not discount or kill pricing with coupons, ridiculous circulars, bait and switch, etc! Give me a break! Oh and by the way Paradigm and Anthem pale in comparison to B&W! B&W, Rotel, and Classe or Paradigm/Anthem? haha Let’s get serious Paradigm. Oh and by the way Magnolia cannot offer Rotel or Classe. They also cannot offer Diamond Series speaker line! Paradigm you can keep your stuff, everyone is jumping ship not coming aboard!
Anthony,
While I agree with your sentiments regarding 6th Ave., FYI, the Diamond Series is already in play. You should have known that if you had any, “inside,” connections.
Regarding your opinion of which products are better, that is simply subjective. Let’s also not forget the difference in costs of the comparative SKU’s. I’m a huge fan of Classe, but Rotel cannot, (IMO), stand up to any Anthem piece. Again, it’s only my opinion.
B&W has no interest in selling the Diamond Series lineup to Magnolia. Even if they did, Magnolia couldn’t sell it. Their customer base is not the high end audiophile spending 5k or more on speakers. Magnolia and B&W both know this!
IMO- Rotel offers an amazing product at their price point with a much stronger customer base! Check out the new Rotel RCX-1500, which according to my sources has a new Apple iPhone, iPad, and iTouch control app in the works for its very near future launch! Early Sept. Amazing piece for $1,500.
Diamond series will be offered however in the stand-alone Magnolia stores. I believe there are about 5 still remaining. The nearest one to the NY area is in Chicago. It will not enter the Best Buy Magnolia’s!
As an 18 year Paradigm/Anthem dealer, I can attest to this article 100%. Let’s also not forget that the quality of their products is outstanding and offer an unheard of value to the end users.
Thank you Paradigm/Anthem for the continued opportunity to offer my clients champagne components to those with beer wallets. Not to mention, thank you also for always listening to us dealers by offering such a tremendous variety of SKU’s to fit every need.
Keep up the great work!