TDG Audio: ‘More Than A Manufacturer’December 20, 2012 By Nancy Klosek
TDG Audio, a brand of The DaVinci Group, “has a very unique business model,” Daniel Kippycash, CEO and co-founder, told CustomRetailer. “The biggest turn with what we’ve done is to build a brand that had inclusion, and that really made a difference. This is the first company of this kind that I know of ever launched in the industry.”
CTO and co-founder Alex Chiou explained that dealers will have the opportunity to partake of a program that lets them be allocated non-voting company shares; the volume of business they do with TDG Audio will correspond to their annual profit-sharing at the end of the year.
Almost 75 dealers are on board so far. “The response has been amazing, off the charts,” Kippycash said.
A good deal of research was done in advance of product design, he added. “We pulled in some dealers on a VIP pre-launch basis and we asked them to help us drill down to what primary sizes and feature sets they needed us to work on and ship first. We also talked about products already out in the market that are good, not premium, but are being sold as premium products at premium prices. We asked dealers for logical steps in how they’re selling systems, and they gave us their insights, as well as great feedback on acoustics.
“While profit margins are critical to them,” continued Kippycash, “dealers said they didn’t want high retail prices without high-end, premium products. Another concern was service. So all our speakers have a lifetime warranty and we have an in-field replacement policy.”
Kippycash said that dealers like the proposition that the products will not being sold online, or through the mass market, or through distribution. “It’s strictly dealer factory direct. We’ll have margins to compete with the best margins out there today, while building the best product cost-effectively.”
Chiou said that at CES the line will be co-exhibited with the already-available Blue Aura wireless range, which is a separate line with separate distribution. Being unveiled for TDG Audio are flangeless in-ceiling speakers in good-better-best (polypropylene -aluminum - Kevlar driver) configurations in a 6-inch size, along with an 8-channel amplifier. The speakers are part of a flangeless line that also includes 5- and 8-inch models; a 12-channel amplifier will also be in the TDG lineup. “We also will have outdoor speakers in 5-, 6-, and 8-inch sizes, and contractor models as well. All of these are part of the company’s Phase One launch, and we plan to ship the speakers by the end of Q1 or early in the second quarter of 2013,” said Chiou.