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Business Ethics in the Audio Industry

I wonder if anyone else has run into problems with audio manufacturer/retailers that raise ethical (if not legal) issues. In mid-April, I ordered a Schiit Freya on Schiit's website and authorized credit card payment. The website said that shipment would be delayed until April 30th. After that, I received another email message from Schiit saying shipment would be delayed until May 15. I made one further inquiry after that, and Schiit responded that I would have to wait a little longer. Then, just yesterday, I received a message from Schiit saying that the Freya had been replaced by two new models, and I could choose between them. Either way, I'd have to pay $100 to $200 more than for the Freya I had ordered in mid-April.

Before yesterday, there was no sign on Schiit's website or anywhere else that the Freya was being discontinued in favor of the new model (with two options). Nor did any of the email messages I received from Schiit indicate that the Freya was being discontinued and that I would have to pay more than previously agreed for what I had ordered. The messages only ever referred to shipping delays.

Do you consider this a fair business practice on the part of Schiit? I feel like it's a bait-and-switch, which they tried to justify by noting that my credit card charge was reimbursed three days after the initial order, as per company policy. But I assumed that was only because of the delay in shipping, and that the card would be charged once shipping occurred. I don't know whether this rises to fraudulent misrepresentation, but it certainly seems to amount to a dishonest business practice. I'd be interested to hear what others think about this.
dancole

Showing 3 responses by ghasley

ghasley
2,436 posts
 
I disagree completely that they owed anyone a new one at the old price.

If that were the case what's good must be good for both parties.  If the price had dropped rather than increased then should the buyer have to pay the old price to get the new model? Even though the new one was less money?

Besides...it only went up about $100 bucks when you consider the upgraded Tung Sol tubes are now included in the base price rather than an upcharge as in the past. Man, maybe I don't feel entitled enough!
ghasley
2,436 posts
 
I believe they actually acted more ethically than is typical. Let me take the conversation a step further to explain why. First of all, they don't owe you anything upfront and they refunded your money promptly. That could have been the end of it. But what if they had shipped you the original Freya on the day you ordered it on or about April 15 and then announced on May 28 a new and upgraded version. How would you feel today? Would you have felt like your new preamp came with it the implicit promise of being a current model in their product line for a period of time? Who decides that?

While I have no idea whatsoever your original desires for a preamp spec wise but let's say, for the sake of argument, that you only wanted the Freya for the balanced ins/outs and for the jfet and passive stages and did not care at all about the tube stage. Would you have been torqued over the fact that the new Freya S would have saved you $100? In my opinion, they did you a huge favor and they actually saved you money in the event you would have chosen to upgrade to the new Freya + model and left you to sell your 45 day old Freya. 

I don't know you and you don't know me so I'm not trying to impose my beliefs of value and fairness on you but you may be over-reacting ever so slightly. People throw around the term "unethical" when that can really harm someone. Think about it for a moment. They chose NOT to take your money when they sure could have and shipped you a product that was about to be discontinued/replaced in the lineup. They did so promptly and without prompting or you having to ask. They couldn't very well tell you why because, short of an enforceable non-disclosure agreement, your silence couldn't be guaranteed. It was a $750ish product that is now either $600 or $900. You get to choose how you want to go forward...where is the harm to you?
ghasley
2,436 posts
 
Dear Dan, please don’t take the responses as a personal afront from the Audiogon community. I believe everyone is in the "more the merrier" camp and I hope you remain engaged and post more when you have something you believe needs saying, whether it is the consensus view or not. Agreeing to disagree is not the end of the world and more in our community should renew those vows from time to time.

We can all agree that the absolute best outcome for you would have been for you to receive the new model at the old price. With whom did you speak at Schiit? A personal conversation likely would have yielded fruit...everything I’ve ever read about Schiit leadership leads me to believe they likely would have (and may still if given the opportunity) seen it through your eyes. You then might have posted about how cool Schiit was and everyone would have been applauding all involved.

Upon reflection though, would you really have been happy with the old model at the old price or was it that you wanted the new model at the old price and didn’t ask a decision maker to consider your plight?

I hope you rethink your position and order the Freya + (but you should call them to see if they would review your situation) and get what you wanted for the next phase in your sound system. One thing you will learn is the Audiogon community can be alot like the grandparent you wished your parents wouldn’t leave you alone with. Sure, they let you drink beer at 10 years old and allowed you to watch roller derby but they also were a little too eager with a swat to the backside. Don’t let it get to you and your opinion is just as valid as anyone’s! Your first post is just as important as someone else's 1,000th. All the best.
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