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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."