EXCLUSIVE: Premium Audio Products Pitch Costco, As Klipsch Sales Falter
Premium Audio Products, who are struggling to direct sell their Klipsch audio products in Australia are now pitching Costco to stock their Jamo product range.
ChannelNews understands that Peter Shamoon a sub-contractor to PAP, a Vox International owned Company, approached Costco to stock the Jamo range, In the past this brand has been sold at specialist Hi Fi dealer stores and online via Amazon and Digital Cinema.
Costco management confirmed the move claiming that a proposal was put to them recently by PAP.
The move comes as PAP management struggles to hit their targets in Australia due in part to Harvey Norman not facilitating a supplier agreement due to changes demanded by Vox International owners.
This is in sharp contrast to arch-rival Sound United who were granted a supplier number within days of applying after they acquired Melbourne based distributor Qualifi.
Sources claim that Shamoon who engineered the exit of the Klipsch brand from Melbourne based distributor Qualifi while still employed by the business as Sales Director along with the former General Manager of Qualifi Phil Hawkins.
Shamoon was hoping to achieve $1M in sales of Klipsch products in Australia during April according to leaked emails, however sources claim that only $200,000 in sales was achieved.
A source at PAP, told ChannelNews that the business has struggled to get stock and that the new Australian operation was set to take delivery of Klipsch stock this week along with spare parts.
The stock will be managed by Mainfreight Limited a listed-New Zealand logistics and transport company headquartered in Auckland who have branches in Australia.
According to retailers the spare parts may be need as Harvey Norman dealers have been sending back “pallet loads” of defective Klipsch sound bars due to problems with the Bluetooth chipset.
According to PAP sources the defective stock has already been shipped back to the Chinese manufacturer.
During a recent presentation of Klipsch 2021 range in New Zealand attended by Phil Hawkins who has recently moved to Sydney, less than six retailers bothered to show up.
Currently Harvey Norman and a small number of specialist dealers are stocking the PAP brands in New Zealand.
Recently staff at Premium Audio Products arch-rival Sound United were given a paid day off because of the efficiency of the acquisition of Qualifi and the “seamless transition” of the business which now includes Bowers & Wilkins, Polk, Marantz, Denon and Definitive Technology products.