Excelent news!
1.1 CD peformance for 6k€.
Seems Linn finally decided to, AS THEY HAVE IN THE PAST, offer great performance to a good price. :D
Is this the start of the new Linn era? back to basic...
A very smart way to decrease CD performance price, without having to decrease the 1.1 price
Is this also an indication that the DVD12 soon is to come replacing the 1.1?
As how many 1.1 do they expect to sell at a 5k premium to just offer DVD... :mrgreen:
Active promo is super!
Again right way to go Linn :!:
ThomasOK wrote:Haven't seen prices yet but we were told that the Akurate disc player is a UniDisk 1.1 with the video circuitry removed.
So it's in fact an Unidisk 1.0. That's the Unidisk I always wanted to have (but now I already own an Unidisk 1.1 which never had and never will play a DVD :roll: )
It is supposed to have audio performance identical to the 1.1
Maybe it is even better, since there is no video board and no picture will be generated all the time? (If yes it would be nice to have an option for the Uni 1.1 to switch the whole video stuff off which is not possible at this time.)
I think it should be a popular unit.
Yes, I think so, too. Many people I know did not bought an Uni 1.1 so far because they always had the bad feeling of paying extra thousand bucks for tons of video stuff they don't need and they don't want.
May I please ask a few questions of those of you in the industry? They're a little confused, as I'm new(ish) to Linn and don't know its corporate history -- hence your perspectives would be greatly welcomed. (Thank-you!):
Q1: Who do you think is driving the apparent change in Linn's strategy?
Q2: I've seen posts here and in Topica to the effect that "Ivor is Back!!" -- Was he really gone? What was his recent role in the company, and how has it changed with the reorganization? Who was pushed out upon his return? Or has the management structure stayed the same, and only the strategy is changing?
The reason I ask is that, whilst the recent Classik price rollback is consistent with a restructuring company taking a fresh marketing approach, a new CD player and a new Tuner sound like things that must have been under development for a reasonable while. So if Linn is changing tack, when were these changes first planned out, and are the people responsible still in power at the company? (e.g., It'd be sad if all the new exciting developments were the work of people who've now been forced out....) Or, given that Linn is a tightly integrated company and the new CD player is a direct development of the 1.1, is it possible that these new products have only been given the go-ahead since the restructuring (i.e., can Linn develop new products that quickly?).
Thank you very much again! When I first purchased my little Classik 6 years ago, I never suspected I'd become so fond of a company that I'd lose sleep on first hearing of its restructuring -- but I'm a great Linn fan now, and I hope it does well. It's been fun reading your respective analyses of what's been going on, and I look forward to reading more. Have a good weekend everyone, and Happy Listening!
A2: Ivor was forced to hand over the day to day running of the company a while back due to health reasons. From what I hear he was quite weak and had to spend most of his time at home. A new treatment has been found (I don't know what his difficulty is) and with these new medications he and others state that he is back in full form! When Ivor recently returned, the MD (equivalent to CEO in the US) that had taken his place was let go and Ivor is back in the position of running the day to day operation of the company. Anyone who knows Ivor knows that he doesn't take any s***. Although he certainly confers with other managers and designers, he has the final say.
From other reports it appears that Linn let 90 out of 280 employees in Scotland go. I'm sure that a number of them were management. I also heard that Linn had nearly 60 designers which does seem a lot for the number of new products created each year, so I'm pretty sure there were cutbacks in all departments.
The reductions in pricing on the Komponent and Classik lines are certainly an indication of a renewed resolve to remain competitive and expand market share. The new Akurate products, on the other hand, obviously have been in development for some time but the pricing they come out at is likely to reflect the new company emphasis. The return of the summer Aktiv promotion and new Aktiv cards are also an indication of renewed focus on core customers and proven marketing ideas.
From what we are seeing Linn are also attempting to improve communication with their dealers and are making a greater effort to make sure their potential customers have the opportunity to hear Linn equipment.
And from what we hear, the Akurate components and new Aktiv products and promo are just the beginning. There are several other products in the works which we can't talk about but which should be coming to market over the next year.
All in all I have to say that the recent changes seem quite positive, except of course for the unfortunate people who are losing their jobs - best wishes to them in finding new employment.
Thank you very much for the very informative background! I really appreciate your taking the time to explain things so fully -- it's very kind of you!
I had been wondering why Ivor was appearing so prominently in Linn's PR materials, and yet so many people were saying the company had abandoned its roots. But it makes sense now, if he was nominally in charge but didn't have the health to lead things day to day. I hope his health continues to improve!
On a completely different note (but related to a point you made earlier): in your experience, did the less-expensive LK products (Genki, LK85, etc.) bring many new customers to Linn? Many forum posts suggest as much -- but for myself, I came in via the Classik Music, and at the time I couldn't hear enough of a difference (between Classik vs. Genki/Kolektor/LK85) to justify all the extra boxes and cables. (Perhaps I had a tin ear back then?) Now that I'm a Linn fan, of course, I've enjoyed trying biamping with various LK-chassis amps from eBay -- but it's not what first drew me to the company and its product line.
So, in your experience, am I typical, or am I an outlier? Or to rephrase things, are low-end component separates (that is, separates considerably less expensive than the Majik) critical to bringing new customers to the marque? Or would Linn be better off providing ways to upgrade the Classik units*, in the hopes of inducing upgraditis in its novice customers?
Anyway, these are just armchair musings, but they're rather fun to think about! As always, I'd be curious to hear your hard-earned perspective -- thanks again, and best wishes. =)
- C
( * As a personal example, I would have loved a small 2-channel amp that could somehow work with the Classik's onboard amp to allow Aktiv biamping; the idea of buying two LK amps and abandoning the Classik's amp section (which I had already paid for!) was never very appealing!)
I was wondering what you industry watchers think of Linn's progress.
Ivor has (judging from reports in this thread) been back at the helm for 5 months now, and whilst that's a fairly short time in product development terms, I was wondering if any of you folks have updated thoughts on where Linn is going (and how the company's prospects look). In particular:
* What are the Klimax DS and Akurate Music Server saying to you? Is this what was meant by the "even higher quality" goals stated during the restructuring? Do you like the direction implied by these products?
* How much of Ivor's hand have you seen beyond the initial pricing reductions this past Spring? Presumably the Akurate CD & Tuner introductions were slated long before Ivor came back to active duty; can the same be said about the Klimax DS and Akurate MS products? Or would you think these newest products reflect Ivor's renewed involvement in daily management at the company?
* What (if anything) is going on at the entry level? At the time of restructuring, much discussion centered on the entry components in Linn's line. Has anyone heard anything about sub-Majik components? Classik updates? Ninka replacements? etc., etc.? Or is it looking like "even higher quality" equates to a continued move upmarket?
* Have there been business developments that have made life easier / worse for the dealers? I gather that the "product families" have made some people's jobs tougher -- but beyond that, have there been substantive changes?
* And on a much more general level, what do you think of Linn's (perceived) direction(s) relative to where the industry is going in general? Are the LP12 updates a sign of renewed focus on turntables and the growing?/shrinking?/stable? population of analog enthusiasts, or is it the final definitive analog update before digital finally outstrips it? Has high-end multichannel peaked, or will it grow? Is video so hopelessly screwed up (e.g., format wars and rapid obsolescence) that a Unidisk 1.1-style premier video+audio product shouldn't be tried again? Are the days of the spinning silver disc really numbered, or will they coexist for another decade next to the server / network-based products --- and at what price & performance levels? And how is audio doing in general?
No need for anyone to answer in a hurry (5 months is really not a long time, and we'll be seeing many more tangible signs over the next year) -- but I'd be curious if any of you industry watchers & insiders have any preliminary thoughts. :D
Thanks very much, and many thanks to those who have been reporting on new products!
The fully digital source is really something new in high-end. Klimax DS price isn't low, but it's cheaper than CD12 or other competing reference players.
Akurate CD is a great product, like all Akurate System. I've heard something about Ninka successor - Majik 140 and Majik integrated amplifiler. It could be very nice, because there was such a great difference in sound quality and price between Classik and Majik.
bbyte wrote:The fully digital source is really something new in high-end. Klimax DS price isn't low, but it's cheaper than CD12 or other competing reference players.
Akurate CD is a great product, like all Akurate System. I've heard something about Ninka successor - Majik 140 and Majik integrated amplifiler. It could be very nice, because there was such a great difference in sound quality and price between Classik and Majik.
I've heard that we will see these new Majik products sometime near the end of October and they will run a little under $3000US so there is some movement on the lower end of Linn Products line.
and whilst they look pretty neat, I'm a little sad they'll (apparently?) need 4 channels (or maybe 3?) apiece to go Aktiv. Still they're nice pieces to dream about and look forward to(!) :D , and it'll be fun to see what the Majik Integrated will be like.
Thanks again!
-C
P.S. -- on a completely different note: is the Majik 140 link from a Swedish forum? Is Sweden a huge market for Linn? I wish I could read what they're saying!!
I would guess it's far from. But, Sweden has for a long time (more than twenty years) had very dedicated dealers (and importer, but that was more than ten years ago).
My dealer (Tonläget) for example, shares the Linn philosophy on how hifi should be evaluated, and as a consequence sells mostly Linn stuff (and some Naim, Lejonklou etc.) My dealer is also very service minded and often includes careful installation in the price etc.
As a consequence (I think) we have maybe not such a large number (Sweden is a small country) but pretty dedicated Linn customers in Sweden, and that is also why we have a base for a very good Linn forum.
For me new Majik 140 is funny, it looks like someone shrinked 3k array. It could look like more like A242 but without super-tweeter. But how it looks isn't so important as the sound. ;)
Maybe after buying LP12, next step for me will be Majik 140 + another Majik 4100 power amplifiler (w/aktiv cards)...
I would guess it's far from. But, Sweden has for a long time (more than twenty years) had very dedicated dealers (and importer, but that was more than ten years ago).
My dealer (Tonläget) for example, shares the Linn philosophy on how hifi should be evaluated, and as a consequence sells mostly Linn stuff (and some Naim, Lejonklou etc.) My dealer is also very service minded and often includes careful installation in the price etc.
As a consequence (I think) we have maybe not such a large number (Sweden is a small country) but pretty dedicated Linn customers in Sweden, and that is also why we have a base for a very good Linn forum.
Hi Broccoli,
I've just realized I never replied to your post -- I'm glad you have great dealers, but I also think there might be something in the Nordic temperament that lends itself to Linn's philosophy! This is not on the basis of any research or anything like that -- in fact it's only based on the relatively small numbers of Swedes, Danes, Norwegians (and Finns) I've had the great pleasure of meeting over the past few years -- but it doesn't surprise me that a small Scandinavian country would have an unusually high number of people who can carefully compare, assess, and discern things of quality! Moreover, it's probably not coincidental that seemingly all of you are articulate, have a great facility with English prose, and can discuss concepts with good will and an ever-present reasonableness. :D
Ceilidh wrote:
Q2: I've seen posts here and in Topica to the effect that "Ivor is Back!!" -- Was he really gone? What was his recent role in the company, and how has it changed with the reorganization? Who was pushed out upon his return? Or has the management structure stayed the same, and only the strategy is changing?
Just in case anyone's interested: a fellow on the Topica forum (Ian Baker) has very kindly posted the link to a recent Podcast interview with Ivor Tiefenbrun, in which Ivor discusses Linn's recent travails, his own health issues, Linn's product direction, industry trends, and the like. It's fairly long (and most of you are probably already familiar with what's said on it), but yours truly found it interesting (not least as I've never heard Ivor before, and I'm impressed with his evident intelligence and enthusiasm!). Here's the link:
I'll try to paraphrase bits of it, for those of you who may not want to sit through all of it (though apologies in advance, as I'll probably garble it up).
Here's a rough paraphrase of the first part of Ivor's Dutch interview (it'll have to be in chunks, as I can only write while waiting for experiments to complete their runs -- so this may take a while!). As mentioned before, there'll probably be many errors in what I write, as this sort of transcripting is not something I've ever tried before. But here goes!
1) Linn had lost focus over the past 5 years, in part because of Ivor's absence. This loss of focus set the stage for an eventual crisis -- but the crisis did not involve the core Hifi business (which has always been healthy and has been growing steadily). Instead the triggers for the crisis were a series of "one-off events" outside of the core, which collectively knocked the company back on its heels. Of these, the biggest by far was the loss of the ??Lourve?? television distribution business, which Linn had been building up. When ??Lou..?? decided to take its distribution in-house, Linn lost a fair amount of income and also staff. This loss, which was very bad in its own right, led to a variety of "knock on" effects that exacerbated matters.
2) As mentioned above, the core HiFi business was always "strong, profitable, and growing". Linn is now refocusing on it.
3) This refocusing means fewer retailers, and fewer products.
4) Note: Ivor's health issues stemmed from an allergic reaction to -- of all things -- prescribed medication for indigestion / digestive reflux. (He referred to an "Insurance Medical", which I'm guessing is perhaps a British term for a routine medical checkup(?) -- in any case, that was the source of the medication.) The allergic reaction in turn led to an autoimmune disorder, wherein the body's immune system turned on the body's own cells. So Ivor was quite sick(!), and although he was able to work for 2,3 or (at best) 4 hours a day, he could only deal with strategic issues and was not involved in the things "that make the business happen" over the past 5 years. [Note: I'm guessing that even those 2-4 hours did not show Ivor at his finest....] But in Nov.2006 he became the guinea pig for an experimental treatment, and after what sounds like an awful first few months, he made an apparently complete recovery this past February (he says he's now "as awful as I always was").
Ok, back to the lab -- next installment will talk about the "fewer retailers and fewer products" comment. Cheers!
Ivor's big picture view of Linn & its strategy is quite integrated. I won't be able to do it full justice (he said an awful lot through the course of the interview), but here's the crux of it:
5) Linn's survival and success hinges on its continued ability to create innovative, revolutionary, and extremely high-quality products targeted towards the music purists. These products depend upon precision detail engineering, but the ultimate goal is to "make people feel the music". This goal has far-reaching implications for product mix, retail relationships, corporate structure, and target customers:
6) On the product side, Linn will focus primarily on music reproduction, but will also continue to show strong interest in home cinema and multiroom. Other areas explored in past years -- e.g., in-car audio, studio broadcast, TV distribution, and "many other" activities will disappear or take a back, back burner (I think Ivor implied complete abandonment in the medium tour, but I'm not quite sure).
In the core audio product lineup, there will be fewer products, and those will be generally organized into three tiers: Majik, Akurate, and Klimax. Product reduction will take the form of eliminating "confusing" product alternatives that blur this tier structure -- but there will be a continued (renewed?) emphasis on creating innovative products and new product categories.
Ultimately the Linn line should contain products that are all above a minimum "great" performance threshold -- that is, a customer purchasing any Linn product should be assured that he/she is purchasing a "great" product. Purchases above this minimum threshold should bring clearly audible and significant performance increases, and [with extra emphasis from Ivor] the higher in the line a customer goes, the greater should be the performance jump (i.e., in going from entry level A to mid-level B to high-level C, the performance improvement between B and C should be greater than that between A and B].
The above strategy will mean that many would-be Linn customers will not be able to afford even the least-pricey Linn products. That is a conscious part of the strategy, and it ties into Linn's efforts to maintain the traditionally high resale value (generally 50-60% of original retail after 5-10 years, as opposed to the industry average of 5%-10% after 5-10 years) of Linn products. More on the resale-value strategy later -- but for now please note the apparent conscious decision to have a pool of Linn enthusiasts who eagerly purchase used Linn equipment because they cannot afford new items. [Note: glad to hear that Yours Truly plays a role in Linn's conscious strategy! :D] In general, a good audio system has always cost about the same as a good motorcar -- Linn is happy with that equivalence, and sees its challenge in explaining to non-enthusiasts why that should be the case.
7) Given the hifi-motorcar equivalence, Linn needs retailers who are able and passionately willing to demonstrate the superior performance of quality products to their customers. Hence the reduction in retailer number: Linn does not want its products sold by retailers who are concerned primarily with volume and one-time sales.
[oops -- another lab run's finished -- more tomorrow!]
Ok, before plunging back into the Retail portion of the paraphrase, let's step back and look at the overall thrust of Ivor's interview:
8 ) Ivor sees the coming universality of broadband (or more accurately, the ever increasing bandwidths becoming available to homeowners in the developed world) as bringing on a sea change to audio and the audio industry. This sea change will introduce fresh opportunities, among which are:
a. the promise of sound quality exceeding that yet achieved by current analog or digital formats (note: this interview appears to have taken place before the announcement of the Klimax DS)
b. a freedom from obsolescent formats and the obsolescence of attendant hardware and "software" (by software, here he means the physical recordings that consume an enormous portion of an audiophile's budget)
c. the possibility of larger high-end markets in the future, as the spread of high-definition video (eventually) fosters a concommittant appreciation for "high def" audio to go with it
d. additional hifi growth opportunities as young 20-somethings "outgrow" their iPods and earbuds and begin yearning for higher quality sound reproduction (but presumably in a similar-feeling downloaded-digital format).
Along with these opportunities, however, Ivor sees some distinct threats looming over the industry. He did not dwell on them, but he cited in particular a belief that "a whole array of" large computer companies will move into household consumer electronics in a way that is going to surprise (and presumably overwhelm) a great number of traditional audio specialists. These newcomers will include (but will not be limited to) massive corporations like Dell, HP, Microsoft, Cisco, etc., as well as smaller competitors such as Schneider, Nortek, and the like. He feels the traditionally inward-looking audio industry has not been paying attention to this looming storm; in contrast, he is trying to position Linn so as to not only ride out the coming changes, but to take advantage of them and thus thrive. This positioning requires that Linn seize upon the opportunities as they develop -- but to do so from the perspective of the purist music lover. And that in turn requires a host of conscious decisions in R&D, manufacturing, marketing, and distribution.
9) On the R&D and manufacturing end, Ivor (laughingly) dismisses suggestions of Far East manufacturing as "complete nonsense" spread by competitors who have not understood Linn's recent travails [Note: presumably here he is referring to the recent Glasgow downsizing.]. He takes pains to stress that Linn is a "vertically integrated Scottish Glasgow-based manufacturing company", one that draws a "United Nations" of the best, most competitive engineers in the world, who come to Glasgow despite the appalling weather because of the interesting challenges offered by Linn's product development. He states that most components are purchased in Europe (particularly from Germany, Denmark, and the UK), with semiconductors from North America and some other components from the Far East. Beyond the Komponent speakers, however, no complete products are manufactured in Asia.
On a more macro level, Ivor spent a good deal of time (and emphatic energy!) explaining why this vertical integration is important. He explains that the current trend in the specialist industry is to outsource manufacturing and to produce products based on "standard designs" using "standard components" or "repackaged products developed elsewhere", with most of the core integrated components having been originally developed for television or mass-market products. Linn will not take this approach for a number of reasons, the biggest of which is:
You cannot distinguish yourself and create a superior product using "off the shelf" standard designs and components used by all your competition. The only way to have "demonstrably better performance" is to use home-grown & home-developed circuit designs that are painstakingly honed to a superior standard.
In the interview, Ivor was quite adamant about this point. He stresses that he is an engineer running an engineering company, and he distinguishes between "design" and "engineering"...
[NOTE: my own industry background is in consumer robotics, and I agree fully with Ivor here -- it's a subtle point, but an important one, and I'll try to do it justice. To explain: one extreme of the outsourcing trend is to contract out the design and development of your products, at which point you are primarily a branding / marketing company. The downsides of this approach (for highly engineered products) are fairly obvious (e.g., at some point, your customers begin to realize that they can purchase your products directly from the true manufacturer without paying you for the branding), and most firms that want to stay around for the long haul won't fall into this trap. Instead, most followers of the outsourcing route design the products themselves, and contract out the actual manufacturing. This approach in theory keeps the crucial expertise in-house and allows your company to "Add Value" -- but it has a more subtle trap: the manufacturer, in trying to build to the design, by necessity has to make a host of small-scale decisions that govern how, in detail, your product actually goes together (an analogous situation occurs in architecture: the architect designs your house and lays out roughly where walls, fixtures, plumbing, etc. all go -- but it's the contractor who actually decides where the pipes run, how the walls fit, etc., etc., and the end result is frequently not at all what the architect or client originally desired). For most normal products, this particular tradeoff is just fine (like a building contractor, the contract manufacturer has a lot of practice making these decisions, and can generally make ones that are "good enough" for the intended use). But for a high-performance product that pushes the boundaries of what's possible, it's a recipe for complete disaster (trust me on this one! We burnt out several truly gifted engineers before we figured out just how much (and it's a lot!) must be kept in-house, if the product is to be something truly special...).]
In the case of Linn, Ivor states emphatically that he does not admire the outsourcing / branding model. "Value is created by Engineering, not by Design", and engineering is the incredibly detailed process of "getting things to work". This process -- making things work -- is extremely labor intensive, but it is Linn's passion. It is what makes Linn, Linn. And it is a fundamental, underlying reason for Linn's vertical integration.
10) Some specifics:
* Linn employs ~70 engineers in R&D, which is about 5-10X greater than the norm. This much greater-than-normal number is needed because of the labor-intensive nature of developing "home-grown" circuit designs, which are the basis of "everything that Linn does".
* As mentioned earlier, most of the integrated components used in specialist audio products have been created for use in television or mass-market audio (and most specialist audio companies employ these components in bought-in standard designs). Because of Linn's R&D resources and focus, the company is able to work with large semiconductor manufacturers to develop components optimized for Linn's particular applications. This customization is normally not open to a company Linn's size (it's normally far, far too expensive), but the semiconductor giants are willing to do it because Linn "can give useful input into their design" (meaning they have the specialized expertise to make suggestions that will improve the chip's performance in its primary applications), or because Linn can give the giants "a look into the future".
* Linn in particular wants to control its own software. The industry trend here is for small specialist firms to buy proprietary systems with proprietary software (frequently by means of a royalty that can add $100 (pounds?) to the product cost). Ivor strongly dislikes this tactic because it locks the company to the proprietary system, and because it gives the company has no way of fixing problems that arise.
* For its products, Linn desires Open Systems, Standard Interfaces, and their own software running at all levels. It develops software either in-house or in conjunction with a small Dutch software firm with whom it's had a close relationship for some time. Beyond this Dutch firm, Linn will only purchase software when it's an inextricable part of the format -- and when it has followed this course in the past, it has caused Linn "big problems"
[Question to Mr. Lejonklou and ThomasOK: could the "big problems" refer to the Unidisk 1.1 and Sony? I've heard rumors to this effect...]
* One of Linn's big limitations is that although 70 engineers are a lot for a small specialist firm, that number is not even nearly enough to develop and introduce a complete product line all at once. Hence a product line (such as the Klimax or Majik) can only be filled in piece by piece over time. Complicating matters is the unpredictability of product completion: Linn will only launch a product if it feels that product is demonstrably superior to its direct competition (i.e., if it's of a standard "we can be proud of") -- and development of that sort can't work to a timetable. Moreover, revolutionary products that create a new category are even more unpredictable [personal note: Tell me about it!!! :D], and development in those cases can slip 1,2, 3 years or more.
* An example given here is that of the Switch Mode power supply. After it was proven to work in the Kremlin tuner and in moving-coil preamps, it was "obvious" that the switch mode should be applied to power amplifiers -- and yet it took Linn 5 or 6 years before the switch mode was able to generate "a clear improvement that customers can appreciate" and that "won't disappoint the customer".
* Along those lines, Ivor refused to say anything about specific future Linn products (aside from a digital/analog tuner to go in the Majik line, and further improvements in the LP/analog realm), but he did say that "everything obvious" is in the pipeline, and will come out when ready.
Ok, we'll stop here until the next installment (it was a long interview!!)
Ok, I'm going to try to finish things off now (as I won't have time to write anything tomorrow)....
Reprise:
Ivor sees broadband as opening the door to revolutionary products that will far outperform anything we've seen before, and he expects a whole array of well-funded companies to come charging into the home, perhaps swamping out the traditional specialist audio companies. Linn will meet the new challenges through innovation and a focus on "musical enjoyment and pleasure" that can be attained only through precision engineering and tight control over the research, development, and manufacturing aspects of product development. Now we go on to marketing and distribution:
11) Linn's product lines will be simplified, and will not expand appreciably downmarket. The entry-level products must be "great"-- which presumably means demonstrably superior to that offered by the best mass-market companies. Linn customers moving above the entry-level must discern clear performance jumps as they move upwards, with the differential of the jumps clearly increasing at the higher pricepoints. In the near term, the tiers will be organized around Majik / Akurate / Klimax, with new products (which will prominently feature devices designed to exploit broadband, like the DS) slotting into these tiers; enhancements on the LP12 and associated components however, will continue.
12) Linn Records (and in particular the digital downloads it offers) will play a critical role in this strategy, and will be strongly supported.
13) With products created to be clearly and discernably "superior" (both to competitors and to lesser members of the Linn line), Linn will support those retailers who passionately strive to demonstrate that superiority to potential customers, while eliminating retailers who treat Linn as one of many products available at distinct pricepoints. (Ivor is quite critical of the pricepoint mentality.)
14) Current high-end retail establishments often discourage potential customers because they are "too forbidding", not welcoming, not "open" [presumably in an architectural sense], not modern, stocked with too many products, and overly focused on pricepoints. The best retailers avoid these problems, and maintain a selective stock of great-or-better products whose qualities can be clearly demonstrated to prospective customers; moveover, these retailers have a "Let me show you what a good hifi can/should do" approach, versus the common "How much do you want to spend /What's your budget" mentality. Linn wants to work only through these best retailers, and is willing to suffer reduced volumes if that's the consequence.
15) In practice, the number of Linn retailers will go down. One retailer per million residents in a developed market will be the rough norm; in Holland there will be about 15, in Sweden maybe 7 or 8. Customers may have to drive long distances to reach a retailer, and retailers may have to drive long distances to reach some customers. That's ok, as the end result will be fewer retailers and fewer customers -- but retailers and customers who will be more passionate about Linn and more likely to talk about their passion and to help others understand why.
16) The passion is greatly emphasized, as Ivor intends the business to grow by referral and recommendation: he wants customers to tell their friends about Linn, and he wants the retailers to develop relationships that can grow and prosper over the course of perhaps many decades. Retailers who will not cultivate such relationships will be let go.
17) Linn will continue to take action to support the resale value of Linn products (which in turn allows longstanding customers to more easily upgrade their systems over the years). This support takes the form of:
a. competitive performance
b. continuous improvement over a long product lifetime
c. where possible, a modular architecture that permits upgrades /expansion of units in the field
d. discontinuation of products BEFORE declining popularity forces their discontinuation (i.e., discontinuation while still competitive)
e. maintenance of product support after discontinuation
f. a dealer body that is itself comprised of Linn customers
g. entry-level pricing such that a pool of would-be Linn customers, who cannot afford new units, eagerly purchase used items.
18 ) Miscellaneous Points that Don't Fit in the Above:
* There will be no new CD12 -- but the Akurate CD comes fairly close
* Ivor is proud of the Isobarik and other long-discontinued items that could still be sold competitively right now (even though the new Linn products are much better).
* [Laughter] the iPod is not a quality source!
* Changing digital formats (of substandard audio quality (CD)) have been a bane for customers -- but the broadband / harddrive revolution will reduce/eliminate format issues. Customers will be more willing to invest in music.
* Ivor admires Sony, Apple, HP, Nortek, Legrande(?), Microsoft, Dell, Pioneer, Denon
* small specialist firms don't have resources to do original things, unless they partner with a bigger buddy
Ok, -- that's the full interview. Now I'll go to sleep!
In the preceding post ("Part 4"), I was extremely unclear and misleading about the "number of customers" that Linn wants: in that post, I said that Linn's strategy is ok with fewer customers. That's not quite right -- Ivor never said that(!!). So to clarify things:
* Linn wants more customers, and it wants new customers.
* To get those customers, Ivor wants "referrals" and "recommendations" from existing customers to draw new Linn enthusiasts into the fold.
* For these referrals and recommendations to happen, Linn needs a base of passionate customers who truly love Linn, its products, and its philosophy.
* Linn also wants customers to hang around for decades: Ivor wants customers who discover Linn to want to purchase new Linn products and upgrades over a period of "10, 20, 30, or 40 years".
* Retailers who don't care about Linn -- especially retailers who also don't care about longterm relationships, and who are happy to sell anything to anyone so long as it keeps their retail volume nice and high, regardless of whether the customer is ultimately delighted with his/her purchase -- will not assist Linn in this strategy.
* Linn will thus work towards strengthening and supporting those retailers who work towards creating longterm relationships with delighted customers. In practice that means some retailers will no longer carry Linn.
* In the short run, fewer dealers will mean that some would-be Linn customers will have farther to travel in order to reach a retailer. Ivor said that the more passionate customers will be willing to do so (and the more passionate dealers will drive out to meet them), but implied in this statement is that some of the less passionate customers may disappear in the near term.
* In the long term, however, an impassioned body of customers and retailers should be an effective means of growing the customer base through referrals and recommendations. And if Linn is thus able to generate new customers who then stay with Linn for decades, it will be in good shape.
Final Miscellaneous Note:
* I forgot to mention earlier (in the miscellaneous section) that Ivor apparently recognizes that Linn's communications haven't been great, as he says in the interview that he hopes to improve those communications.
* He also mentioned that if someone writes him a letter, he'll answer it.
Ok, hopefully that'll really do it this time. Have a good weekend, everyone!
I must say it is great to have Ivor back. In just a few months it feels like Linn has found the direction again. And especially the part of the Linn products hierarchy easier to understand has been very obvious lately (the naming of the chakra amps).
Did Ivor said how to contact him. I have some Q´s that would be interesting to have answered directly from the man himself 8)
Ceilidh wrote:* For its products, Linn desires Open Systems, Standard Interfaces, and their own software running at all levels. It develops software either in-house or in conjunction with a small Dutch software firm with whom it's had a close relationship for some time. Beyond this Dutch firm, Linn will only purchase software when it's an inextricable part of the format -- and when it has followed this course in the past, it has caused Linn "big problems"
[Question to Mr. Lejonklou and ThomasOK: could the "big problems" refer to the Unidisk 1.1 and Sony? I've heard rumors to this effect...]
It is highly likely Ivor is talking about Sony and the UniDisk problems as it took quite some time for Linn to convince Sony to give them access to the software governing the laser assembly in the UniDisks. Once Linn was able to rewrite that code they were able to clear up the majority of the UniDisk problems.
Linn also mention the problems of the "closed" SACD standard and the limitations on data portability caused by this closed system in some of the documents about the Klimax DS system. Obviously it would be nice if DSD recording was an open standard that could be transferred over a network and ripped to a CD as companies like Linn could then distribute exact copies of the original master tapes. But the restrictions placed on the DSD spec by Sony and Phillips make that impossible, which is strange since Sony have all but abandoned the SACD format.
Music Lover wrote:Yes, I can confirm that Ivor answer personal mails.
I once contacted Ivor when I couldn't resolve a problem with Linns servicedepartment. Me and my dealer tried everything and got a not so nice response from service. We where basically idiots for not accepting a "fault free" product and they could do nothing more for my Movie Di. At that time I had sent it in twice and they had changed almost everything, psu, DVD driver etc. still not fixing the problem.
Finally I emailed Ivor and got a very nice and friendly reply. He said he was going to monitor my case all the way. My problem then got a VIP lane in service. By using my method (3 page of step by step instructions, how to listen, what to feel etc...) and my discs they finally could find the problem! All the emails I got from Linn regarding this case had CC to Ivor. So I can say from my experience that it can be a very good idea to contact Ivor directly.
Note: Linn decided to incorporate my method in their service approval procedure to avoid making the same mistake again. And do I get any credit (read 95% discount on a Klimax DS! :P ) for that? No...But at least I finally got a great fully working Movie Di, that I still own and use in my HT-system.
