German Maestro Pushes Into U.S.

By Amy Gilroy -- TWICE, 4/6/2009

LAGUNA NIGUEL, CALIF. — German Maestro said it hopes to sell its new car stereo brand through 150 outlets by the end of the year.

Lead by industry veteran Ray Windsor, the company is selling speakers manufactured in the same Obrigheim, Germany factory where the original MB Quart speakers were previously built.

Windsor said his focus is to push a protected brand that carries 55 percent margins and maintains a strict minimum resale policy.

The company, which recently shipped its first speakers, tracks product serial numbers to prevent transshipping and claimed to possess the “discipline” to cut off transshippers. Product is also protected from Internet sales.

The German Maestro line includes the EV6508 6.5-inch component speaker at a $450 street price and a 10-inch Marina MRC 10008 coaxial speaker for $1,000.

MB Quart was purchased while in receivership in 2005 by Maxxsonics, which later sold the MB Quart factory to former MB Quart management who launched the German Maestro brand in November 2008. Windsor claimed the factory's 40 employees are all original MB Quart employees.

German Maestro announced Windsor as president in January.

JBL Gives Retail Tips

BY AMY GILROY

DAYTONA BEACH, FLA. — Inadvertently, the audio industry — both car and home — has trained the consumer that hi-fi is complex, and now it needs to reverse that image, said Andy Wehmeyer, JBL Car Audio global product line manager, during the Spring Break Nationals last month.

Leading a dealer seminar on the future of car audio retailing, Wehmeyer said the current attitude of consumers toward the local car audio specialist is less than favorable.

When it comes to buying products, non-enthusiasts want “to be satisfied, not educated,” and they prefer to have gear installed by an expert, but they consider the car dealer as an expert and the specialist as a “hack.” Wehmeyer said he reached that conclusion based on his 25 years of experience in the industry. He also referenced a Consumer Electronics Association survey that found that 60 percent of consumers are concerned about the quality of a car stereo installation and 36 percent are concerned about voiding the warranty.

Enthusiasts, by contrast, see themselves as the experts, prefer to shop online for the lowest price and prefer to install products themselves. They tend to see the specialist as a “crook,” he said.

To win the non-enthusiast, 12-volt retailers should simplify the sale, perhaps even remove the demo boards, and place a few demo cars on the sales floor.

No consumer cares about crossovers and speakers except the enthusiast, he said, explaining that for the neophyte it makes more sense to demonstrate the sound of one system and then tell the consumer he can achieve that sound for a certain price.

“Take down the sound boards and build a couple of cars — not one that appeals to enthusiasts, but one that would appeal to a neophyte so when you give a great audio demo, the consumer's response is, 'Wow, how much is that,'” said Wehmeyer.

To cater to the enthusiast, he suggested retailers consider freeing up an installation bay to do-it-yourselfers and charge for bay rental and tool rental.