Thursday, March 29, 2007

MK Speakers are No More!

Miller & Kreisel Sound has shut down it's doors. You can find some information at their website, MK Sound as well as the Stereophile article here.

There are allegations of counterfeit, Chinese made speakers being partly responsible for their demise, as well as innuendos of ex-business partners or employees being part of it as well.

I do not know if any of this is true, but I must say, I'm kind of surprised MK made it as far as they did anyway.

Don't get me wrong, I LOVE my MK S-1B with the V-1 subwoofer combination that is the heart of my living room's home theater system. When I bought my main speakers, I happened to know the MK rep for the SE US, and since there were no dealers in Georgia, I got a deal. At the time I was a starving student, trying to make a business as an installer. I think they were great sounding, and well priced when I bought them, 15-20 years ago. Since then however, I never bought another pair, and ended up with Monitor Audio RS1s in the home office, and Cambridge Soundworks for surrounds in the home theater.

There were several problems with the MK speaker line for me as a pure consumer. The first was the complete lack of stores. I have run into 2 stores who even carried MK products. The second problem is just the cost. TINY speakers were running around $600-$800 each! And given the fairly standard Vifa tweeters they were using, I had a real trouble paying that much for them. Even when they had discounts and B grade products, I could find too many speakers that were cheaper and as good or better.

In addition, I think MK Sound suffered from another problem: Too many products.

They tried to spread their brand around to every conceivable type of speaker. Cubes to compete with Bose and Cambridge Soundworks, powered studio grade monitors, super sub woofers, and in-wall speakers. They experimented with every conceivable type of surround speaker. Bi-polar, di-polar, tri-polar, upward firing, behind the couch, you name it. Except for co-axial designs, and PA speakers, they did it all. On the innovation scale, they definitely get a 10+ rating. They were producing almost as many different types of speakers as Sony or Panasonic. The only other brands that I knew of that competed with this many speakers were Cambridge Soundworks, which I heard is in the process of closing many of its stores.

I really wondered how MK Sound could possibly control quality, maintain high prices, and get enough sales volume to keep the doors open. Having so many different models of speakers seemed like a nightmare for their reps. What DO you sell a new store? What products are you going to go in with? What are you going to promote to reviewers? To be really successful you need to have multiple good reviews of a single or closely related speaker models. How can you concentrate your marketing focus and generate brand excitement with 100 different models? This is the business model you would use to sell products to WalMart and Sears, not independent, high end stores.

Where MK Sound seems to have followed the high-end/specialty model is in their subwoofers. They got consistently great reviews on them, and they seemed to be a major part of their business as a result, selling to many customers who probably were not going to use MK speakers for the rest of their systems.

Honestly, this is all questions and conjecture on my part. For all I know they had solved all of these problems. I've never met Ken Kreisler, and don't have an MBA, but, if anyone has any ideas about this, please drop me a note, because I'd be fascinated to find out what really happened.

Take care!

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