Best Buy Drops Rockford

[Impious 1,476]

I was speaking objectively from a business standpoint. The people in charge of Rockford are interested in one thing, money. The creative design is left to those in the field. Believe what you will but I think it's naive to think in any terms other than money. I know in my business, if someone wants to buy, I sell. I don't care about their ideals or anything else, if they're going to buy, I'm going to sell. That's a cute story about the lawn chairs, but I'd be willing to bet it's not common.

For the record, I understand business quite well. I'm sorry if you don't believe me. You're not looking at this from a business standpoint, you're looking at it from a standpoint of a guy who's into car audio, don't get your passions in the way of business. Given what I was told and how the average business is run I find it hard to believe Rockford dumped Best Buy. There's a lot more reasons to keep your largest customer than not to. I'd be amazed if Rockford's profits went up from this decision.

You obviously didn't read the story, nor understand how it relates here. Nor are you looking at the larger picture. You think you've got it all figured out because you "think of money".....unfortunately you aren't looking at the strategy of how to generate that money. That is business. Money is not. Money is what results from a strong business strategy. If you have a poor business strategy guess what?.....you're not going to make any money.

There's more to sales, revenue and profit than simply the number of units moved out the door. You also have to consider your brand's image to consumers in the market. You then have to realize how that brand image will affect what products you can offer in the market and what price you can them sell for. You also have to consider how the competing products being sold via the same outlet as your products will affect your pricing strategy and the level of quality and product you can offer through those outlets.

If RF is branded as a "Best Buy" product it will affect the consumers perceived image of the brand. BB isn't known for their high quality car audio products, RF would more than likely prefer to be known for producing high quality car audio products. So how does it affect your company image if one of the most prominent retailers of your product is mainly selling low to mid level, mediocre, mass-market products? You'll be labeled as such as well. This will in turn affect the perceived level of quality of all of the lines of products and how much the consumer is willing to pay for those higher lines of products. If you're producing a high quality, higher cost, higher line of product but the consumer doesn't perceive it as such because of your brand image they aren't going to pay what you're asking.....where's this money you speak of going to come from?

Also, in order to compete in the BB market you will have to price your products accordingly, which means you either eat into your own profit margin or produce a lower quality product, which again will affect your brand image and how the consumer perceives your entire product line up. So if you want to be known for high quality products that are sold through an independent dealer network (which will improve sales of those higher quality products and improve your ability to sell them for your asking price) but your lower lines are of decreasing quality because you need to keep up with the BB market that you're lower lines are being sold through, what's going to happen? Not as many people are going to be looking at those higher line of products.....sales fall, dealers start dropping the line, and soon all you're left with is the lower end low quality cheap product sold through Best Buy. If this isn't the direction you want to take the company due to profit margin, or product mix, or recouping costs, or relative percentage of sales of independent retailers vs national retailers, etc......where's this money you speak of going to come from?

You're not looking at it from an objective business standpoint, you're looking at it from a blind "units = $ " standpoint which is not a solid business strategy.

Oh, by the way....you claim RF's profit is down, they are about ready to tank. This happened while they had BB as a national retailer. So how's that strategy working out for them?

[Godsmack 361]

I have also heard that rockford was in finacial trouble as well, remember that they are a coporation that has a board of people that control the company best buy isnt like that. Honestly we havent really been selling alot of their product lately. I have 3 p3 12s 3 and 3 p500.1s that I cant get rid of. The only thing that I sell consistantly are the amp kits and other install products.

Dick doesn't run the whole show over there, Best Buy is set up just like any other international multi billion dollar company.

Think of it. Rockford isn't run by audiophiles, it's run by business men who have an obligation to the investors, not to steer the company in a less profitable direction because they want to deal with "core audio". The people in the board room don't give a shit what Rockford produces, sells or how it works, all they care about is making the company money, their salaries depend on it.

Thats why people had their rides brought in for CES on Rockfords dollar? And the same person was given shit. No paid for but given to him by Rockford to push the new line.

Boy kid you really take an 'insiders' word to heart. Well let me tell you as an investor in Rockford I called my stock broker, when I read about them dropping Best Buy from their dealers list to find out what the new plans were (if they could find shit out) and all the data they could find pointed to Best Buy moving more and more to iPod, and shit that can EASILY integrate with stock which is a direction kicker is heading, not Rockford.

So believe what you want, and while the bottom note is money they also looks at common sense for their marketing area.

J

[dvalue 17]

Odd, I was up at work today, checking to see if there were any new announcements, and didnt see anything about this. Figure the employees would be told, especially if Rockford released a statement. Same thing with the Kicker/Polk thing, I'll have to ask next time I go in.

[shakes 2]

I think I'm right, you guys think you're right. We're not going to change each other's minds. In my opinion given the information I heard Best Buy dumped Rockford, if it's the other way around, so be it, but don't try to pass off business theory as fact. I honestly don't know for sure what happened. I heard it all second hand but to me, it seems more plausible that Best Buy cut the Rockford line. Rockford isn't exactly a niche company, it's a mainstream big box company and has been for some time. Maybe they do want to change, then again, maybe they don't. Call me kid, call me dumb, say I don't know how to run a business. My business still makes money and I don't think it's on accident so apparently my philosophy works as well.

I just don't understand why a simple debate has to resort to insults, people can disagree and remain civil at the same time.

[dbrown23 1]

Odd, I was up at work today, checking to see if there were any new announcements, and didnt see anything about this. Figure the employees would be told, especially if Rockford released a statement. Same thing with the Kicker/Polk thing, I'll have to ask next time I go in.

If your an installer it will be on your home page when you log on under my job subtitle. If not you probably have to get a installer to log onto toolkit for you.

[dbrown23 1]

I have also heard that rockford was in finacial trouble as well, remember that they are a coporation that has a board of people that control the company best buy isnt like that. Honestly we havent really been selling alot of their product lately. I have 3 p3 12s 3 and 3 p500.1s that I cant get rid of. The only thing that I sell consistantly are the amp kits and other install products.

Dick doesn't run the whole show over there, Best Buy is set up just like any other international multi billion dollar company.

Think of it. Rockford isn't run by audiophiles, it's run by business men who have an obligation to the investors, not to steer the company in a less profitable direction because they want to deal with "core audio". The people in the board room don't give a shit what Rockford produces, sells or how it works, all they care about is making the company money, their salaries depend on it.

Thats why people had their rides brought in for CES on Rockfords dollar? And the same person was given shit. No paid for but given to him by Rockford to push the new line.

Boy kid you really take an 'insiders' word to heart. Well let me tell you as an investor in Rockford I called my stock broker, when I read about them dropping Best Buy from their dealers list to find out what the new plans were (if they could find shit out) and all the data they could find pointed to Best Buy moving more and more to iPod, and shit that can EASILY integrate with stock which is a direction kicker is heading, not Rockford.

So believe what you want, and while the bottom note is money they also looks at common sense for their marketing area.

J

I havent seen a big push for Ipod integration we only stock a few things like the i simple by peripheral. Hell prettty much any of the decks out now have ipod capabilities anyway. So I dont know where this big ipod push thing is. They are making a big deal out of the viper smart start where you can start your car with the i phone. But I I guess I will see how this plays out in the next month when I start getting product.

[Impious 1,476]

Rockford isn't exactly a niche company, it's a mainstream big box company and has been for some time.

Rockford was a niche company, grew and expanded, then moved to the big box arena just 10yrs ago. Once that happened, their company image dropped and people started complaining about a decrease in quality. Seriously, I couldn't tell you the number of times I've seen or heard someone say something equivalent to "RF's gone to crap since they started selling them at BB".

Funny, I googled "rockford+crap+best+buy" and the very first link it pulled up was a thread on another forum with the first post being:

"I don't know if this a good or bad thing for Rockford, but it has to be good for speality retailer like my shop. Best Buy picked up Kicker to replace them. I can tell that rockford going to best buy wasn't great for the image in the highend dealers eyes. It made them look cheap. Maybe rockford can change there image be changing there direction."

Interestingly....that sounds like EXACTLY the effect I was talking about. Hmmm......

[Bearlokey13 2]

Hmmm, Impious that is an interesting point. Does anyone think that people's opinion of Kicker will suffer the same consequence?

[shakes 2]

Rockford isn't exactly a niche company, it's a mainstream big box company and has been for some time.

Rockford was a niche company, grew and expanded, then moved to the big box arena just 10yrs ago. Once that happened, their company image dropped and people started complaining about a decrease in quality. Seriously, I couldn't tell you the number of times I've seen or heard someone say something equivalent to "RF's gone to crap since they started selling them at BB".

Funny, I googled "rockford+crap+best+buy" and the very first link it pulled up was a thread on another forum with the first post being:

"I don't know if this a good or bad thing for Rockford, but it has to be good for speality retailer like my shop. Best Buy picked up Kicker to replace them. I can tell that rockford going to best buy wasn't great for the image in the highend dealers eyes. It made them look cheap. Maybe rockford can change there image be changing there direction."

Interestingly....that sounds like EXACTLY the effect I was talking about. Hmmm......

You're trying to discredit my "theory" of what happened with your own theory of why what may have happened happened. You're using second hand information as if it were facts to dismiss my second hand information. Only difference is I admit my information may not be fact. Who knows. Maybe Best Buy lied to their employees because them losing Rockford would be detrimental to their business. Maybe Best Buy dumped Rockford for whatever reason. As for me only looking at the monetary aspect of it I suppose that's closed minded but money is the number one objective of a company. Someone else's opinion coinciding with your own doesn't make you right.

For all we know it was a mixture of both our theories, maybe the relationship between the companies went sour over who knows what. Looking back on my argument and yours, we got a little off subject I guess and I probably started it by repeating what I had heard from someone at Best Buy corporate. Honestly I really don't care either way what happened. I don't shop at Best Buy, the only Rockford equipment I have is 10+ years old. I have no interest in seeing either company slung through the mud. Maybe Rockford was trying to change their image and they and Best Buy couldn't come to an agreement on what to do and how. Maybe Best Buy couldn't successfully market Rockford's higher end equipment as they thought they could have with the acquisition of Magnolia? Who knows.

I'm tired and rambling. We'll see who is right (like it matters) in the future, if you're right you can call me a business idiot all you want, my company is doing just fine.

[shakes 2]

Hmmm, Impious that is an interesting point. Does anyone think that people's opinion of Kicker will suffer the same consequence?

Time will tell. But the consequences of which he's talking about are really only perceived. I really don't think anyone on this forum will really know what happened or the details though. We're all merely speculating.

[Godsmack 361]

I only call you kid beacuse while you speak with the language that an educated man speakes with, you seem to refuse to accept the idea that Best Buy may have been dropped.

Point here (as already stated prior to this post) is that Rockford and BB are no longer sharing a bed. Its kinda like when mom says Dad left us, and Dad says that cunt threw me out. Doesnt matter how it happened all we know is they no longer sleep together.

J

[shakes 2]

I only call you kid beacuse while you speak with the language that an educated man speakes with, you seem to refuse to accept the idea that Best Buy may have been dropped.

Point here (as already stated prior to this post) is that Rockford and BB are no longer sharing a bed. Its kinda like when mom says Dad left us, and Dad says that c-word threw me out. Doesnt matter how it happened all we know is they no longer sleep together.

J

And you seem to refuse to accept the fact that Rockford may have been dropped, should I call you kid?

What we're having is a disagreement, neither of us actually know 100% what happened. We're more or less guessing. Is that a fair statement? I know Rockford released a statement saying one thing, Obama said he was going to cut taxes. I was just supplying a speculative argument to support the story I heard. I was told in passing that Best Buy dropped Rockford, people read Rockford dropped Best Buy. I'm not so close minded that I would refuse to accept something proven to me. It hasn't been proven yet and I'm of the school of thought Best Buy dropped Rockford, no one has proven otherwise, just posted their opinion saying I was wrong. If it turns out Best Buy did drop Rockford will I call you close minded and you couldn't accept the fact Best Buy could have dropped Rockford? No, we don't know either way yet.

[kjones 2]

all he said was chill out... we get it.

[jfin1204 2]

i install at bestbuy, first we only carry the p1 and p3 models used to carry the p2 but stopped. the p3 are 200 which is a wast of money. plus when anyone wants a p3 i offer them a pos type r. p3 cones are made of plastic crap and crack all the time under pressure. there amps are sh*t as well at least for the line we carry, i dont mean all RF products just the ones best buy carry. they sell their 1000 watts for 600$ i could get a saz 2000 for that. they are like jl audio now living off their name from the first W6.

[Duran 387]

Impious pwns. Shakes, while your opinion is valid your childish, closed mind is revolting; attempt to be the bigger person and accept when you are wrong. You obviously have NO idea how to run a business, if you plan on being a business owner get ready to declare bankruptcy.

[RobClay 20]

This thread is STILL going?? lol

[mbarber25 29]

Impious pwns. Shakes, while your opinion is valid your childish, closed mind is revolting; attempt to be the bigger person and accept when you are wrong. You obviously have NO idea how to run a business, if you plan on being a business owner get ready to declare bankruptcy.

[mbarber25 29]

Rockford, Best Buy Parting Ways - 2010-01-25 21:56:46 | TWICE

[Impious 1,476]

You're trying to discredit my "theory" of what happened with your own theory of why what may have happened happened. You're using second hand information as if it were facts to dismiss my second hand information. Only difference is I admit my information may not be fact. Who knows. Maybe Best Buy lied to their employees because them losing Rockford would be detrimental to their business. Maybe Best Buy dumped Rockford for whatever reason. As for me only looking at the monetary aspect of it I suppose that's closed minded but money is the number one objective of a company. Someone else's opinion coinciding with your own doesn't make you right.

For all we know it was a mixture of both our theories, maybe the relationship between the companies went sour over who knows what. Looking back on my argument and yours, we got a little off subject I guess and I probably started it by repeating what I had heard from someone at Best Buy corporate. Honestly I really don't care either way what happened. I don't shop at Best Buy, the only Rockford equipment I have is 10+ years old. I have no interest in seeing either company slung through the mud. Maybe Rockford was trying to change their image and they and Best Buy couldn't come to an agreement on what to do and how. Maybe Best Buy couldn't successfully market Rockford's higher end equipment as they thought they could have with the acquisition of Magnolia? Who knows.

I'm tired and rambling. We'll see who is right (like it matters) in the future, if you're right you can call me a business idiot all you want, my company is doing just fine.

I really don't care who dropped who. Read through my posts; I never really argued one way or the other on the actual details of the matter.

My point was to discredit your business sense and you're idea that it would be a stupid business move by RF to drop BB, originating from your comment "Do you think a large corporation would give up it's largest sales tool on principle?" The answer is yes, I do think it's possible a company would and gave several reasons from business 101 (literally, it's pretty basic business principles). You're just too naive to understand why. BB may have dropped RF.....doesn't invalidate my points that 1) it could have made business sense for RF to drop BB, and 2) that regardless of how it happened, it very well may benefit RF in the end. But unfortunately these ideas are lost on you, as you don't understand business.

[TechSys 3]

The Story on TecTrends

And another story. I'd believe this one first though.

[dvalue 17]

What I got from reading the company news, was that rockford dropped BB. I believe it said something along the lines of "rockford is leaving us, blah, blah, blah, kicker and polk this spring".

I am actually fairly excited, cause I have more options to recommend to people.

[mbarber25 29]

What I got from reading the company news, was that rockford dropped BB. I believe it said something along the lines of "rockford is leaving us, blah, blah, blah, kicker and polk this spring".

I am actually fairly excited, cause I have more options to recommend to people.

think there will be any deals on the remaining rockford stuff?

[dvalue 17]

No idea. Too early to tell if any.

[shakes 2]

Impious pwns. Shakes, while your opinion is valid your childish, closed mind is revolting; attempt to be the bigger person and accept when you are wrong. You obviously have NO idea how to run a business, if you plan on being a business owner get ready to declare bankruptcy.

I don't understand why I'm childish and close minded for thinking something else. I don't have any aversion to being wrong. I'm sure I've been wrong on more things than I've been right on if I add up everything I've said in my life. We disagreed on what happened and gave reasons as to why our respective theories would be correct. Neither of us had real solid evidence to support our claim except the statement released from Rockford which is what I was disputing. It appears I was wrong and I'm not butt hurt over it, in fact I really don't care. Obviously no one on here knows me but I don't actually take internet arguing seriously. The statement released from Rockford seemed kind of puffy to me considering I had heard otherwise from a Best Buy insider (which admittedly could be biased). It's like a resume or a job interview. No one wants to lie but distorting the truth to make you look better is commonplace.

For the record, I've been running my own business for 5 years now and it's run completely on cash flow with no investors, partners or debt. So being wrong on a car audio forum on one topic really doesn't make me an idiot at everything else in life.

[Gioia69 30]

yea definately more money in kicker. lots of kids want the kickers. their name is so well known. so it's a good move on both parts.

still won't catch me buying anything besides a deck there though

x2. they were selling RF T1Ks for $700 . and the funny thing is, i know they buy them for about $200 because of a friend that works there. $500 markup on a item they paid $200 for? cmon now, thats just rediculous. I do NOT support places like Best Buy. sonic electronix ftw!!!

Edited February 8, 2010 by Gioia69