How Bose Can Teach The AV Business How To Sell More Systems For More Profit

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Bose_store.gifAs an audiophile and AV professional, I am not really a fan of Bose speakers, nor have I ever been in my 20 year consumer electronics career. With their massive market share and well-funded engineering department, I don't understand why they voice their speakers the way they do - but even their most enthusiastic detractors have to admit that Dr. Bose and his team really know how to sell speakers. I have always said that the most impressive element of Bose is their ability to market into nearly every channel - for that I am a fan of the company's marketing.

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Look how other AV companies are now hurrying to get into big box stores, warehouse stores, Apple stores and online retailers. Bose is already there and already dominant. And Bose has a dozen other channels that they milk for millions of dollars of sales per year, including print newspaper ads, door-to-door, TV infomercials and beyond. They might be the single best multi-channel marketing company in the U.S. economy - not just the consumer electronics business.

There is a new place that Bose is leading the way into, which is as a finely tuned audio and video retailer. A lot of ink goes to Apple for their massively profitable and uber-cool Apple Stores but Bose quietly does what Costco, Target, Wal-mart, Best Buy and sadly, many brick and mortar specialty AV stores fail to do - Bose does one hell of an in-store audio-video demo. Walk into any shopping mall or outlet location with a Bose store and simply saunter into the store near the home theater demo. It won't take 30 seconds until a well-trained salesperson will invite you in and show you their best demo.

The demo is to-the-point, dynamic and well designed. It highlights the strength of their products and the unity of their systems, while leaving the weaknesses far from your consciousness. Most importantly, anyone with a heartbeat gets the show if they even walk close to the theater. Even if a consumer couldn't buy one of the interconnects in the system - they get the demo so that they can tell their friends that Bose is the best. And who could blame them for spreading the good news after being treated so well at the Bose store? More than one high level AV manufacturing executive has experienced this level of sales expertise and has been left the same way I was - WOWED by the sales skill, the production value of the demo and the I-care-to-make-a-sale enthusiasm that you don't get in the big box stores.


Realistically, I don't think you can expect to get this level of sales expertise and AV demo at Costco as they don't really "sell" anything - they just allow the consumers to take home discounted items that are pre-sold by online publications (like this one and many others), TV, magazines and other outlets including other retailers. Ironically, if you were a consumer shopping simply on price, there are better HDTVs sold on the Internet than at Costco, Wal-mart and Target; however the convenience of just dragging home a new set does have some appeal for some consumers. For about 10 percent more there is likely a local store that might deliver and setup the HDTV for you at your home, might offer a better warranty and possibly a better demo. Ask them what they can do for you over the well-known players and don't be surprised to see them offer a nice package to earn your business. Many California specialty stores are offering to recycle old CRTs and other sets for consumers who buy a new set. Others offer ISF video calibration for the HDTV sets at little to no additional cost. Depending on your needs - it's nice to be treated well as a customer shopping locally and looking for both performance and value.

Read more about what Bose does right on Page 2.
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  • Comment on this article

  • By tes918

Costco and others like it may not have an AV demo on Bose products but whatever Bose speaker system they are selling from computer speakers to home theater speakers there will always be an audio demo (press this button type demo). I agree you can not beat the marketing they perform,

  • By bricot

Agreed, they do a great job of creating an in-store wow factor. When I did my first blind speaker comparison, they were the first ruled out. Matter of fact the sales guy (who opened the store on a Sunday to do a series of blind tests) said he was glad he also did the test... he didn't think there would be that big of a difference between what were were comparing.

Bose strategy for maximum profits:
1) Repeat over and over "We're the Best" and advertise, advertise, advertise (better compared to whom? When is the last time you heard Pioneer advertise their A/V receivers on a major radio talk show?)
2) Don't allow your products to share floor space with the competition (to prevent A-B comparisons)
3) Ensure the customers are treated warmly and kindly (who can complain with that?)
4) Slick demo interfaces with easy-to-understand interace (again, the competition could learn from this)
5) Ensure the customer stands within the near-field soundstage for great sound and imaging (never mind that no one sits within 3 feet of all their speakers at home, and the sub will never be heard again in their family rooms without major distortion at volumes required)
6) Pay high fees to the big-box stores to put their gear in the high traffic areas (kaching! Money that goes into marketing, and not hardware materials..but all paid by the consumer)
7) Proprietary cable management and RF remotes that prevent/disuade consumers from using non-Bose amplifiers/EQ's/remotes that might steal market share, or future purchases outside the corporate brand.

Again, Bose should be applauded by any capitalist for their marketing genius and I would probably buy a few shares if it was a publicly traded company. But, by no means should anyone put their consumer gear into the same category as "audiophile" equipment. It's "fair" gear, with "great" ease-of-setup by the Grandpa with lots of money, but no audiophile aspirations, or the middle-class "Joe" who has been sold on Bose by the crazy-great marketing machine that is "Bose".

Cheers,
Doc

PS: I've converted more friends from their "1-2-3-WTF?" or "3-2-1-Is that all?" systems than I can even remember. I then take their next $2000 and buy them excellent separates that blow their mind and still have the WAF.

  • By chuckdaly

The only, and I literally mean only, thing AV retailers/manufacturers can learn from Bose is to market beyond enthusiast circles. Ferraris and Porsches continue to rise in price, their sales aren't effected by used car sales on Ebay Motors, or online sales, and the general public understands where the value lies in the money spent on one. Bose accomplishes this feat as well. The general public thinks a $20K AV system is ridiculously priced, even though hours of enjoyment per dollar spent on one is far greater than that of a Ferrari/ Porsche. Heck the AV system may even have greater resale value. This difference in public perception between luxury AV and luxury Cars comes down to advertisings and marketing. Everyone know Porsche, and everyone knows Bose. How many non-enthusiasts can name 2 specialty audio/video brands?

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