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After dropping all their reps, Sonos has moved to a "100% Direct Service Model" and looks to invest deep in the CI community. Week in Review is sponsored by Sony.
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  • Loren Roetman

    A couple of things to clarify:

    SONOS is also the same upside down…

    They started firing reps months ago, no big surprise or lament.

    The rep model for a line that is so easy to go online, order and get what you need, was a little unneccessary from the start. I came on board as a dealer in the early days, before they brought on Bob Spaner to build CI. While he was in charge of the effort, it flourished, after he left, the push became a coast and then pretty much ground to a halt. No surprise. From my view, the traditional reps mostly never got much past the front door with it. Commission rates were modest, they needed to push the distro model in order to make much money at all. Not a great way to build positive business with the best dealers.

    The rep distribution “feature” of the package offered the dealer about a third of the direct order profit. Same deal at WAVE now more or less, if the standard direct margin is cause for as much firestorm as it has up to this point, what are all those trunkslammers thinking (if they even are). I guess the DIFM model is catching on…

    Minimums to be a direct dealer, both startup and ongoing really aren’t that difficult to achieve. I think that they are just clearing out dead wood with this move.

    Sonos has had good (not great…) regional reps out in the territories for many years. A little bit limited in their reach, mostly in place for BestBuy / Big Box servicing, but it’s not like they have never had any presence at all or they are starting from scratch. It shouldn’t be very difficult to flesh that out at all.

    It’s a mature product line that they continue to tweak and improve. The margins look pretty good now as compared with all this DIY stuff that it seems neccessary to offer now. I couldn’t be any more content or happy with the line. Thank you Sonos for making this move, the freight policy alone will put significant money back in my pocket.