Premium Audio Products whose business ethics were exposed earlier this year, when they moved on the then staff of their distributor Melbourne based Qualifi offering incentives for them to quit before axing them as their distributor of the Klipsch range of audio is now facing new problems according to insiders.
ChannelNews has been told that staff who were lured into the business to sell Klipsch and Vox International products, with offers of $8K a month plus “significant” bonuses every month are now concerned that they will not be paid their bonuses with some getting set to quit.
“The business is a mess, there are issues with returns, we can’t get into stores and the business is not hitting targets” ChannelNews was told.
Initially staff were told that they would be paid additional bonuses for April, May and June 2021 now it’s been revealed that sales of Klipsch products, are not at the levels targeted by former head of sales at Qualifi Peter Shamoon, who was one of the architects of the unethical move to take the brand away from Qualifi, also involved in the ill-fated exercise was former Qualifi General Manager Phil Hawkins.
One source told ChannelNews “What Shamoon envisaged for Klipsch and what is actually being achieved in Australia, are miles apart from what was planned.” said one source.
Vox International the owners of the Klipsch and Premium Audio Products are currently in a battle with the Samsung owned Harman Group with both Companies looking to grow their share of the in car automotive market as brands move to electric cars.
Klipsch recently announced an expensive new pair of T5 II True Wireless ANC earphones for overseas markets. No announcements have been made for the Australian market.
ChannelNews also understands that Shamoon had built into his forecasts for Australia, an expansion into key new retail partners this has also failed to eventuate.
What Shamoon did not factor into his budgets was a move by PMA arch rival Sound United, who quickly acquired Qualifi and within weeks had integrated their Bowers & Wilkins business into the operation. They also moved quickly to expand their Polk and Denon range of products taking on Klipsch at key retailers such as Harvey Norman.
Peter Shamoon seen left.
Questions are also being asked as to how long Shamoon will stay with the business. He is currently a contractor to Premium Audio Products.
