Sonos, First They Nobble Customers Now They Nobble Retailers For Discounting
US sound Company Sonos, has moved to nobble the retail partners who helped get the brand off the ground in Australia, because they are discounting out the product under the price that Sonos is trying to sell the same product direct.
According to Sean Mattiaccio the CEO of Melbourne based AV retailer Klapp he was dumped as a reseller after Sonos told him to stop “discounting the product out” on his popular AV online site.
The Melbourne retailer said that he was initially threatened and then dumped.
Klapp Electronics was one of the original specialist dealers who helped Sonos get established in Australia when mainstream retailers such as JB Hi Fi rejected the Sonos networked speaker back in 2007 claiming that at the time they thought it was too complicated for consumers.
Another dealer who was also dumped said “Sonos are a disgusting Company they use retailers to generate leads then they move to sell direct to a retailers customer cutting out the retailer”.
Mattiaccio said “We have moved to ranging the new Devialet networked speaker, it delivers superior sound to the Sonos speaker. We were using the Sonos product online to attract customers to our site, Sonos did not like our pricing so they dumped us”.
“What’s not know is whether this is a form of price fixing which is illegal under the Australian Competition and Consumer regulations” said a Sydney based retailer.
Recently Sonos owners were recently in arms about the company’s decision to stop supporting certain older products.
Many of these Sonos products are installed in Australia and are in perfect working order, but despite this Sonos wanted users to buy a new product.
Owners were given the choice of replacement products with a 30% discount (in which case their old devices would be remotely and permanently disabled after a few weeks) or, continuing to use the old speakers with the existing software revision.
The problem with the latter course is that it was all or nothing: updating the software in newer speakers would stop them working with the older models.
Sonos CEO Patrick Spence later emailed registered owners, admitting “We did not get this right from the start.”
Now in a desperate effort to replace the ageing and buggy Sonos software the Company is moving to launch a new”S2″ operating system because of the many associated with their current operating system.
The new S2 OS will make several current products obsolete including the Play:5, Zone Players, and the early models of Connect/Connect: Amp which will cease to receive new features.
Thousands of these were sold in Australia and are still in households.
Sonos wants to force these consumers to upgrade.
These products will only receive security updates and continue to function using the current Sonos app which is set to be replaced for new models.
Sonos has got desperate as they start to fall behind superior networked sound systems from the likes of Devialet, Google Amazon Denon, & Bowers & Wilkins. They are also one of the few major players to not include support for Dolby Atmos.
Sonos has not commented for this story.