Pioneer Alters Strategy For Home CE Sales

By Steve Smith -- TWICE, 3/8/2010

LONG BEACH, CALIF. — Pioneer Electronics is making a greater selection of mainstream-series AVRs available to authorized Internet retailers, the latest change in its approach to home CE retail distribution.

The announcement follows the company’s move to independent sales reps for home CE products.

Internet retailers are now eligible to sell all AVRs in the mainstream series, which is priced up to $749. Previously, Internet retailers were given access to AVRs up to $499. The mainstream series consists of five AVRs.

In late February Pioneer began notifying retailers that it is eliminating its direct sales force in favor of independent reps for its home electronics line.

Russ Johnston, marketing and product planning executive VP, told TWICE the reasons for the change are “to reduce our fi xed costs and we want to improve the service to our customers. It was important to increase the number of sales people in the field.”

Johnston said seven direct salespeople will be let go by Pioneer and that as of now, “We have hired five reps. We have another two we are in the contract stage with [and] by April we need to hire around six to eight more. Our current direct sales force will all be let go by the end of March,” which is the end of its parent company’s fiscal year.

Pioneer will still maintain a directsales force for car electronics, Johnston said.