$1,000,000.00 in Four Weeks

[Chas]

Congratuations to GT and all who were involved. :)

Quote: "Our consumer division continues to leverage a strong brand recognition with alliance and partnerships. The JBL luxury speaker Project K2 was launched in February achieving more than $1 million in a short period of four weeks. It was featured in the cover of Japan's most prestigious audio magazine."

http://seekingalpha.com/article/134103-harman-international-industries-inc-f3q09-qtr-end-03-31-09-earnings-call-transcript?source=yahoo

[BMWCCA]

That's 22 pairs of K2s, for reference. No wonder all the questions were about the automotive OE market. I wonder what the return-on-investment break-even point is for $45,000 speakers selling at the rate of 22 per month?

For comparison, BMW sold over 80,000 vehicles world-wide in February 2009 even in a down economy. Many of those were equipped with JBL/Harman audio systems. BMW is selling roughly a thousand new 7-series cars each month in the USA despite the down economy and the $85,000 base price. Most of those will have the JBL/Harman Premium Sound system in them. And yet JBL won't offer their best home-audio speakers here? :hmm:

[Chas]

BMW here in Canada say they're busy as ever. :bs:

I found it interesting that 70% of Harman's business is automotive related. I had no idea it was that much.

[JBL 4645]

Excuse me, if I sound a little lost here guys. You saying the project K2 was at cost of $1 million dollars to produce and in timeframe of 4 weeks?

So what does the production cost of other JBL speakers cost?

[BMWCCA]

I took the quote to mean the company sold $1M in product within four weeks of its introduction to the marketplace. :dont-know
That's 22 systems.

[Titanium Dome]

BMW here in Canada say they're busy as ever. :bs:

I found it interesting that 70% of Harman's business is automotive related. I had no idea it was that much.

Most car audio, car stereo, or auto sound threads here peter out at 20 or less posts. Johnaec and I have broached the subject from time as an important part of the Lansing heritage, but it never sticks. Toddalin posts about car gear in home use, but I'm talking about car gear used in vehicles.

Not only is it a big part of the company's revenue, but it's a place where its reputation is top tier. The GTi Series, with its $4000, 6000W amps; with its $2000 component packages, with tweeter waveguides, dedicated Array-class crossovers, and Kevlar mids; and with its $700 best in class subs, is every bit the K2 of automotive sound.

Congratulations are due the new K2 team for a successful launch of a great product, but the auto sound guys are making the real money.

[louped garouv]

i used to know guys that would totally revamp their car audio system every year or two....

new head unit, xovers, drivers, cabinets
complete custom jobs...

car audio is BIG BUCKS, and has been for quite awhile.....


although Denver does seem to have many less "BOOM mobiles"
than the New Orleans area used to have when i was in HS...

[Titanium Dome]

BTW, it's the K2 S9900 that raked in the million bucks.

http://www.harman.com/press/pdf/Q3-2009ERSlide.pdf

[johnaec]

The exact quote from Ti-Dome's Harman link:

JBL Project K2 S9900 luxury speakers launched, with more than $1 million in orders during the first month of release

John

[BMWCCA]

BTW, it's the K2 S9900 that raked in the million bucks.Eggs zacherly. About $45,000/pair (http://elitechoice.org/2009/02/20/jbls-k2-s9900-has-everyone-waiting-with-bated-breath/). That's about 22 pair sold, or rather on order. :D

[Mike Ronesia]

Interesting read, like most company's now days cut expenses and jobs to meet those share holder expectations. Doesn't look like they plan to tapper off any time soon either. Lets hope they keep funding the JBL R&D guys and maybe make a marketing change on the Consumer products in the States. Looks like Consumer products are strong in Europe where they're marketed better and the auto division is paying the bills. It's interesting that the PRO stuff is not as popular in Europe.

[Valentin]

a million in orders is alot more pairs than a million sold to consumers

at least 30% or more

i wonder what the projection for such a project

somebody know how many k2 s9800 where manufactured since their launch

[4313B]

Interesting read, like most company's now days cut expenses and jobs to meet those share holder expectations.Yep, JBL Consumer just lost a bunch of legacy talent this past quarter. That talent will never be recovered.

[timc]

Yep, JBL Consumer just lost a bunch of legacy talent this past quarter. That talent will never be recovered. Quite frankly, it's downright pathetic.




What? Who went?

Not some of the major people i hope, like Greg and Jerry...........


-Tim

[4313B]

Co-workers of many years, rightfully regarded as irreplaceable.

[BMWCCA]

a million in orders is alot more pairs than a million sold to consumers

at least 30% or moreUnless they're using the same hyperbole law enforcement uses when they find someone growing marijuana in their basement and claim the six plants had a "street value" of one-million dollars! Or the way poppy production is Afghanistan is reported in the billions in eventual street value as heroin? So, do you know what value they're using, or are you just guessing? Regardless, even at 50% more, that's still only 33 pairs of speakers. If retail is double wholesale cost, then that explodes to 44 systems. Even at a mark-up rate used in the jewelry business, it's still only 66 pairs. But split those hairs anyway you want to. :D

Even Rolls Royce delivered 32 new cars to U.S. customers alone in the month of April. Delivered, not took-orders-for. Up 19% from last April. JBL is fast becoming the Maybach (down 60% YTD) of luxury speaker marketing. Maybe they'll have to eventually resort to selling in the USA. ;)


Last edited by 4313B; Today at 01:02 PM. Reason: removed potentially inflammatory paragraphs Darn, I'm always too late for the good stuff!

[4313B]

Darn, I'm always too late for the good stuff!Well, what's said in Vegas should probably stay in Vegas. Sometimes my cage gets rattled and I 'speak' too soon, potentially negative ramifications be damned.

[toddalin]

While they may have sold a million in sales, or 22 pair, the first month, I would not expect even this level to be sustained.

I think this is like when car people wait for a new exotic car to come along. There are those who have to have it, wait for it, and buy when it comes out (e.g., Tesla Roadster, new Corvette 638 hp supercharged ZR-1, etc.). But these people don't even think of the cost even though these items may well undercut the REAL EXPENSIVE stuff (e.g., Ferrari, Maserati, etc.).

After these people buy in, the market settles to some considerably lesser level and I would expect the same here.

[timc]

Co-workers of many years, rightfully regarded as irreplaceable.


Sad to hear it :(


-Tim

[Valentin]

exactly
even if its 22 o 33 pair
what the projected long run for such a product
last product lasted 8 years

did they sell 1000 units 2000 units 500 units

it would be interesting to know how many units of the last edition 9800 where sold

it is probably a success story just as a product plus the image icon

[Titanium Dome]

Co-workers of many years, rightfully regarded as irreplaceable.

Truly written. Great people generally cannot be great if they aren't surrounded by equal or better talent. In any organization, a few get the recognition, but it is the work of the entire group that makes success possible.