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PostPosted: Tue Oct 15, 2013 4:24 pm 
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Location: Durham Region, ON, CA
Here is an email I received from Parasound.

"Hello:
My name is Paul Brownlee and I am the GM at Parasound as well as the guy who has handled our Canadian sales for 20 years here.

Thank you for your email to Positive Marketing, which they forwarded to me since I am most qualified to give you the full picture.



We pulled out of Canada because we cannot make any money serving the community. While we are not greedy or seeking to make a fortune, we did do an audit of our Canadian sales for the prior 2 years and we found out that we lost money on these sales in both years. This is not counting any warranty replacements or repairs that we paid 100% of in order to provide the same level of service that we give to the US and export accounts. The business has simply not been profitable.



Canadian safety approvals: It came to my attention that our goods were no longer being locally Ontario Hydro inspected prior to sale. All our products were supposed to be inspected and that was not happening at the distributor level.



Sales volume and lack of growth: We are growing as a company at about 20% each year even over the past 4 – 5 years when the economies around the world have been shaky. This was not the case in Canada and after speaking with a number of Canadian distributors we could not resolve how to be profitable in Canada.



This action was not taken lightly. I am all too aware of American companies propensity to cut and run if things get tough. In this case we couldn’t come up with a pricing plan that we felt would be accepted by our Canadian dealers and customers. Prices would have to rise by 30% in order for Parasound to be profitable, support the brand in Canada (travel, shows, demo pricing for dealers, rebates, etc…) and all of this is based on the dollar parity that we have had for some time but will eventually disappear as it always does.



So, given all the points above we contacted our distributor in April to advise that we would announce our departure from Canada in an open letter that we asked them to send to our Canadian customers. The letter went out in June with the option of having dealers purchase product for the next 2 months in an effort to allow them to meet demand and finish jobs that might be in the offing.



We have no expectation that we will re-enter the Canadian market any time soon given the obstacles that we faced in the past few years.

As we announced and continue to repeat, all Parasound warranty repairs that meet our warranty rules will be happily taken care of as will out of warranty repairs. We have a repair facility in Vancouver and in Mississauga but none in the middle of the country.



I’m sorry about any disappointment our actions may have brought you. Please feel free to contact me directly if you have further questions or comments or need help with your gear.



Regards,

Paul C. Brownlee

GM Parasound

paul@parasound.com


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PostPosted: Tue Oct 15, 2013 5:23 pm 
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Location: Penticton, BC, CA
Credit the direct and candid answer from Parasound


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PostPosted: Tue Oct 15, 2013 5:26 pm 
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for sure...

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PostPosted: Tue Oct 15, 2013 5:42 pm 
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Interesting comment about the ESA - that only applies to Ontario.

Parasound is not UL or ETL approved for the US either.

Their stuff does bear a CE mark for Europe, but they are based in California.

The web site used to say built in California, but I cannot see that now.

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Oh, this again.....


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PostPosted: Tue Oct 15, 2013 5:56 pm 
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We will miss them greatly :wink:

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PostPosted: Tue Oct 15, 2013 6:15 pm 
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Location: Newmarket, ON, CA
LEAFS264 wrote:
Well, this relationship lasted all of 2 1/2 years

http://www.marketnews.ca/content/index/page?pid=8688


Positive Marketing (check out the brands http://www.positivemarketingav.com/page/brands) hardly seems a good fit for a company that is concentrated almost exclusively in the 2-channel space; in the HT space they have a few multi-channel amps and that's it!


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PostPosted: Tue Oct 15, 2013 6:23 pm 
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Location: West GTA, ON, CA
The current market is tough for stereo. The majority of "home entertainment" dollars are spent on smart phones or on whole home systems. When receivers from 1970s go for $1000 on Kijiji (& there are people willing to pay :roll: ), then the brick & mortar stores are in trouble.


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PostPosted: Tue Oct 15, 2013 7:09 pm 
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Perhaps, this had something to do with it.

http://www.marketnews.ca/content/index/page?pid=13599


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PostPosted: Tue Oct 15, 2013 9:57 pm 
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lzp1 wrote:
nedrudrelyt wrote:
Musical Fidelity almost pulled their entire stock out of Canada as well about ten years ago when Kevro was the main distributor for MF products. Kevro was so bad as a distributor it almost cost Canadians MF products from that point forward.

Not the way Kevro tells the story.


For sure as there are always two sides. All I can say is I had to deal with Kevro directly on a couple of occasions and it was not pleasant. I actually had to speak with a MF UK rep to get some results and lawyers almost had to get involved. But in Kevro's defense (which I don't think is much) Musical Fidelity was making an absolute garbage line of products at the time in the KW series of products. The return rate on this equipment was off the chart so I could see where Kevro was coming on some issues as the issues were large with so many problems with the line. So there are always two sides to the stories agreed...it takes two to tango.

But that whole experience had sworn me off MF products for good which is a little too bad as they still make some pretty great sounding gear.


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PostPosted: Wed Oct 16, 2013 6:10 am 
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Starting out reading this post, it was both interesting, and upsetting the amount of hard assumptions that are made that are false.
Thank you Leafs264 for posting that letter from Paul.
I spent a lot of time chatting with Parasound and Paul during the last 6 months while all this is going down. I don't want to ramble, as the letter Leafs264 posted is a good summary. And good distribution/support is very hard to find these days.

All I want to say is this:
I have never dealt with a company that has treated me better, or that is such a pleasure to do business with. Parasound has gone many extra miles to look after me. The decision to pull out of Canada was not taken lightly, and they were very, very upset it had to come to this. They make amazing gear for the dollar, and they will be missed very much here.

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PostPosted: Wed Oct 16, 2013 6:58 am 
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Forbes_2 wrote:
Starting out reading this post, it was both interesting, and upsetting the amount of hard assumptions that are made that are false.
Thank you Leafs264 for posting that letter from Paul.
I spent a lot of time chatting with Parasound and Paul during the last 6 months while all this is going down. I don't want to ramble, as the letter Leafs264 posted is a good summary. And good distribution/support is very hard to find these days.

All I want to say is this:
I have never dealt with a company that has treated me better, or that is such a pleasure to do business with. Parasound has gone many extra miles to look after me. The decision to pull out of Canada was not taken lightly, and they were very, very upset it had to come to this. They make amazing gear for the dollar, and they will be missed very much here.



I couldn't agree more. Anytime a good company moves out and our options for gear drop, it's a loss for everyone. Great customer service is VERY hard to find these days.


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PostPosted: Wed Oct 16, 2013 7:28 am 
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Forbes_2 wrote:
I have never dealt with a company that has treated me better, or that is such a pleasure to do business with. Parasound has gone many extra miles to look after me. The decision to pull out of Canada was not taken lightly, and they were very, very upset it had to come to this. They make amazing gear for the dollar, and they will be missed very much here.

I agree, they have always been great to deal with from my end. I am disapointed to see them exit our market, however I am not surprised. Nice to see this thread updated with facts.


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PostPosted: Wed Oct 16, 2013 7:32 am 
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I tend to agree with what most have posted. I always liked Parasound products and never had a problem dealing with them directly. I do however question what has really gone on as I have talked to a few in the industry and I also talked to Paul at length yesterday and the explanations coming back are almost canned and rehearsed. The sceptic in me reads through generic responses pretty quick which always means there's more to the story.

My opinion is that a big part of the problem was the last distributor. They dropped the ball in one way or another and Parasound is taking the high road and not throwing them under the bus publicly (good on them for it).

Regardless and at the end of the day, their stuff does not meet code for Canada which is why they have chosen to not sell into Canada period. They want to avoid potential legal problems and from the sounds of it, they have no desire to deal with CSA and honestly, I can't say as I blame them.

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PostPosted: Wed Oct 16, 2013 7:33 am 
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I believe that no one in Canada would object Canadian price being 110% of U.S. retail to reflect
smaller market.

However, when Canadian retail is 140%-160% of U.S. retail, many Canadians tell incompetent/greedy distributors to take a long walk off a short pier.

I was looking for a long time for A21 but could not find it reasonably priced and finally looked elsewhere. I guess that I was not alone, that Parasound missed a chance to sell a boatload of A21s here only if they were reasonably priced.

"there is no live entertainment because there are no patrons. and there are no patrons because we can not afford live entertainment".

If Oppo could do it, anyone could do it.

In global economy, anyone hoping to charge 40%-50% stupidity fee will sink. Canadian retail and service loses jobs because of it.

Let see how #thronespeech will address this problem.


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PostPosted: Wed Oct 16, 2013 7:40 am 
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I notice a few people in this thread have in a round about way commented on my first post and what it included (or didn't include).

For your own reference, the comment I included from Parasound was a direct cut and paste. There was nothing edited in anyway. What you see is what you get.....to the letter.

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