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Velodyne Drops Independent Reps

8/01/2011 04:38:24 PM Eastern
Morgan Hill, Calif. - Velodyne Acoustics has become the second audio specialty supplier in recent months to drop independent reps and go factory-direct.

The company has begun selling its Velodyne-branded powered subwoofers direct through its in-house salespeople and through its website to retailers and distributors. Like before, dealers who buy through distributors must be preapproved by Velodyne.

In another distribution change, Velodyne stepped up consumer-direct sales of Velodyne-branded products through its website. Previously, the company sold lower priced close-out products through its website to consumers, but now it is selling all models in its current lineup though its web site to consumers at MAP prices, a spokesperson said. The company is also trying to put a stop to unauthorized web sales that violate its current MAP policies and "wrestle back control of all web sales of its products worldwide," he added.

The company dropped its independent reps as of July 28, and the company has already launched sales of all Velodyne products through its website to consumers, the spokesman said. Velodyne-brand products continue to be available on-line through such authorized on-line stores as Crutchfield.

With the ranks of specialty-A/V dealers dwindling over the years, Lenbrook dropped independent reps for an inside sales force to reach specialty-A/V dealers more cost effectively, and suppliers such as Bowers & Wilkins have had to expand beyond independent specialists to build sales. Other audio suppliers have expanded distribution to on-line stores.

In a prepared statement, Hall said his company "is reorganizing and adapting to profound changes that have occurred recently in the business environment."
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