MyerEmco Going Out of Business

I was soo suprised to see how poorly ran myer emco was from the start of my employment. I was previously employed by a small 4 man company and the Owner/CEO was The Scheduler, Install Tech, Inventory Director and Manager of the company. Yet this small scale company was ran soo much better than the EMCO! Here i was so excited to get a job with this Highly Respected Company. This company is a pure disapointment that rode its good name for the last few years. All the while mistreating, manipulating, abusing and using its employees in order to further (HIS) agenda at the expense of the employees. There have been multiple LABOR LAW INFRACTIONS COMMITTED and promises broken by yours truly (CEO) that have left some employees with empty savings accounts based on promises that were never honored. I am disgusted by the way we have all been mistreated. I EXPECTED MORE FROM SUCH A RESPECTABLE FAMILY OWNED BUSINESS THAT IS HELD IN SUCH HIGH REGUARDS AROUND THE D.C. METRO AREA. TRUST ME THIS IS NOT A BUSINESS MODEL ANYONE WANTS TO FOLLOW!!!

Good luck to all the friends and family affected by the closings! 

@comment

You are probably a disgruntled ex employee everywhere you go.  Writing in capital letters to highlight your point is childish,  it is clear to see why you got fired from the four man company and the EMCO!

It’s sad to see another of the great retail chains fall and join Tweeter, Tech HiFi, Harvey, Pacific Stereo, Musicraft, Playback, University, Atlantis, Leonard Radio, Federated, Rogersound, etc. in what is sadly a growing group of regional chains that have failed over the years. Ed Myer and Gary Yacoubian brought much to this industry and their contributions will not be forgotten.

You can directly blame the manufacturers for most of the small & medium business failures in the CE business. Advantage pricing for the big blue guys and wallymart is a really killer.  On top of that is any advantage we might have in service, this is neutralized by the economy and stupid consumers who believe price is king.  In the end most of them see what is happening but to late for the small guys.  On top of that we have to compete with our suppliers (Sony the worst) and the internet pricing (no tax).

A letter to Sony, Samsung, LG and others,
Well, it looks like another large account of yours has fallen while our one store business has almost doubled in sales last year. I remember when brands were loyal to the stores that supported them - until the big stores came along. When you stopped your loyalty, so did we. I wonder how long it will be until you start beggin us for space on our showroom floor?

Vinnie - I’ll never forget when a Sony sales rep told me “you are waiting on 3 TV… Best Buy just put in an order for 6,000..who’s order should I fill first?” This was after waiting 6 weeks with lie after lie that “those shipped but we don’t have tracking yet.”

The manufacturers do this to themselves in some regards - video is certainly bad. Why does Samsung need 40 different models all with razor thin margins? Why not have 2 models in each size and just be done with it? Less to make, less to design, less to market and more to make in profits!

If EHX/CEPro management doesn’t ell vendors & dealers the actual truth about attendence at their EHX/CES & Spring EHX, they could be joining MyerEmco

Here’s a good one. I just saw a Sony 55” TV through distribution is $20.00 less than retail. How much cheaper could it be direct? If Sony has to try that hard to compete with other brands, they should just do everyone a favor and get out of the TV business now.

@ Vinnie:
I couldn’t agree with you more. The loyalty in this business is almost non-existent. However, we as dealers should take advantage of the fact that companies like B&W, (Meyer Emco was the country’s largest dealer), are now going to have to do something to attempt to make up for the loss of that business.

This is the perfect time for us independent dealers to hold MFG’s feet to the fire, and force them to offer us the same discounts & terms that they would give to a Meyer Emco that we were never privy to in the past.

On the other hand, we can do nothing and wait for them to beg us for our support. In either case, it’s a win-win situation for us.

@Vinnie:
It’s 2010 and there is no money in selling TV’s anymore. Forget about moving boxes. Most manufacturers are in it for themselves and your power will be in diversification of products and services. Integration is the future of this industry. The mindset must change and CE Pros must acquire and offer a full set of services to separate themselves from the competition. Walk all over the big box stores with design services, lighting, shading, solar, enterprise class networking and monitoring services. All items that should be a part of your offering.

I thought this commentary in the Washington Post really sums up the demise of Myer Emco, better than anything else I’ve read. Couple these external perspectives with Jon Myers internal perspectives and it certainly brings a great deal of clarity to the plight of the specialty retailer model.

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/11/AR2010021104729.html

@2960:
I know what year it is, and we’re very diverse. But are you telling me to just accept what these manufacturers are doing, and be content with selling whatever scraps come my way? Or just allow my customers to tell me to pick up a TV (or any electronics for that matter) at walmart or best buy for me to install for them? I opened a showroom not only to show people what our company can do with consumer electronics, but to stand out as an authority on what to buy. As a result, my clients take what brands I recommend very seriously. Manufacturers would do themselves a favor if they would think about that once in a while. If we follow your plan, there will be no local retailers of any kind, just Walmart, Best Buy, Costco, Sams Club or the internet - for electronics, food, clothing or anything. So who do you think you’re going to service in the future?

@Vinnie:
Once again, I completely agree with you. I would also like to add to your commentary to hopefully give some helpful advice to those specialty dealers who still maintain a, “brick & mortar,” showroom.

As a specialty dealer myself for over 2 decades, what is it that we fear about big box stores? Is it the huge selection they can afford to display, or is it the, “so-called,” lower prices?

Regarding pricing, I rarely see big box stores giving anything away unless they’re having a, “scratch & dent, or demo sale.”  Granted, I carry many high end brands that would never be offered to these types of stores. However, my bread and butter lines are still Paradigm & Denon for example. I’ve yet to see any current Denon piece advertised for less than retail, and Paradigm has always been well protected.

TV’s though can be a different story. I still sell Pioneer Elite’s, and my less expensive brands are Samsung, Sony, and Sharp. I’ve never had to worry about Pioneer’s pricing, (but I will have to shortly when they’re all gone), and top of the line Samsung & Sony models still maintain a decent, (but not like in the old days), profit
margin.

Therefore, big box stores pose no threat to me regarding pricing. However, it takes a trained sales staff to sell the more expensive TV’s & Blu Ray players when a client sees a 60” Panasonic sold for next to nothing. It is our job to educate the best we can the differences that exist in quality. Are we always going to win? No, but you have to give it your best shot and roll with the punches.

Regarding having a huge selection that big box stores can afford to display and we can’t, it should be used to your advantage by asking a client 1 simple question. “Why would a store need to carry 15 different speaker, receiver, and TV lines?” Answer: “Because the buyer has no idea what is the best.”

As an example, “Why would anyone need to display numerous brands of bookshelf speakers that all sell for $300.00 per pair?” Point being, if the buyer doesn’t know which is the best, how could he/she expect the public to pick out the best? If he/she did know what the best is, why spend the money displaying numerous inferior products side by side?

Clients come to our specialty stores because of our expertise. The sales pitch is simple, “We’ve done our homework and narrowed down/weeded out the inferior product lines and only carry the best. Plus, the best does not necessarily mean that it’s more expensive. Quite frankly, higher end brands typically have a lower profit margin due to the fact that these brands are either hand made or are QC’d like no other before they leave the factory. Thus, the quality, durability, and upgrade ability is not costly, it’s priceless.”

What I’ve said above is nothing new. Big box stores have been around forever, but look how quickly they fail and how surprised the public reacts when company giants like, The Wiz, Circuit City, Tweeter, Crazy Eddie, Tech Hi-Fi, Harvey, etc., are now gone.

Believe it or not, manufacturers are starting to get the message that they need us now more than ever. With Meyer Emco leaving, where do you think that loss of revenue to them is going to have to be made up? Hang in there, and stick to your guns… it won’t be long now.