Meridian Unplugged - Powered by MrTechGuy.co.uk Forums Discussion Meridian - Systems Exciting Opportunity - Meridian HQ Visit

Hi Longitude

As a Meridian customer for more than 20 years now, I can tell you that I'm acutely aware of their financial dispositions down thru the years... and I can say that there have been many more "troughs" than peaks in their financial position

Sure the windfall they had from MLP about 12 years ago was a once-off boon... but I'm not sure their relative pre-eminence in the marketplace has changed significantly... vis-a-vis Linn, Arcam, Naim, Krell, Kef et al

Obviously the marketplace has changed, with less and less people interested in Multi-Channel Home Movie Theatres... or even in premium 2-channel replay

IMHO, the biggest "mistake" that Meridian have made over the past 10 years was in going from a relatively OPEN relationship with their Clients... to the one in play for the past 5-plus years of "say very, very little"

IMHO, that approach would not have worked in 1997... but it certainly won't work in 2017, where customers expect their suppliers to supply them with some kind of guidance of where they are going next... and I'm sorry, I just don't buy their argument of "keeping the information away from the competition"

e.g. there is an audience here waiting with baited breath to see what they can buy to play the latest MQA titles... but not alone are the Meridian products not really there to do that... but nobody here has ANY idea of WHAT or WHEN those products might come... leading them to look at other options

Blimey....10 years !!

You have aged well

Russ

I must say, I don't disagree with you at all. My reference to there being no rule of business that says leaders won't make mistakes does have Meridian in mind - but it can only be our personal view.

If I were running M, even if the perceived sharp cost cutting is indeed what is happening, the last people I would neglect would be my existing customer base. And I don't think it costs much. You don't even need a huge amount new to say.

With kit as complex as Meridian's you could offer educational events and otherwise keep a stream of communication going with customers at quite low cost. However, it would need imagination and creativity and perhaps that is in short supply. But, the new historical part of their website may be a corner turned - though it does make me feel I own a lot of museum pieces.

With some luck, they will see the light of day... and soon

As you say, talking to us... even a little... would be very cheap and would go a long way to offering us peace of mind about spending more money with them today... maybe they will see that... hopefully!!

Sad to read that they are experiencing tough times.

I agree with what was written above, and re-engaging with their customers will go a long way. Clearly "consult your local dealer" doesn't work today. The nearest dealer to me is over an hour away!

Agreed to all of the above.

As I understand it, they wanted to become more of a high end luxury brand, and thus (this is my guess) they may have wanted to distance themselves from the enthusiast customers and to be seen as more exclusive.

But I think as hindsight is 20-20, we can see where this sadly went awry.

I suppose the question is what happens now....

I am curious where you are reading their financials?

It seems odd a P/E shop would spin off viable operations, leaving the body to die. By this, I mean Roon and MQA. Now I don't know the circumstances of these spins, but presumably they have value, maybe considerable value. I understand that to realize the full value of MQA and Roon, you need to extract Meridian, but letting it die seems odd.

I for one would be interested in what is the biggest drag at M. Do they make $$ on the speakers? They seem very expensive to build, being they're in the U.K. The hardware seems less so.

Filings for Meridian Audio Ltd can be found here: https://beta.companieshouse.gov.uk/

No breakdown of product lines.

Soundserge

It would seem silly not to be making money on the speakers. Maybe poor sales of late across the lines are dragging down the company. None of these items should be "loss leaders," and they should be making money on everything they sell. If this is not the case, they have bigger problems with the business.

Porsche were in the same position a few years ago, they added SUVs to their range which are now their big seller and allows them to continue with making their 911s and things like the 918.

Jaguar were also in a similar position, they added regular sedans and estates to compete with BMW, Mercedes and Audi.

Same with brands like Waitrose, they added an essential range. Doesn't mean their deli counter or fish counter has no longer got some of the best products you can buy.

The whole of the fashion industry, a segment that has always led the luxury image, has changed rapidly over the last decade, they have all gone from exclusive and hard to get to readily available and a much more achievable price point. They have had to because peoples perception of what is important to them has changed.
Many people in my shop sniff at paying £100-150 for a pair of trousers or £250 for a shoes, these shoes may last them a life time, yet they usually come into my shop after eating across the road where they have just spent £120 on lunch. When you stop and think about it, it makes no sense. But it is happening, people's priorities are changing and if you don't adapt you die.

For the first time in a long time we are putting back in basic knitwear, V necks and Crew necks in nice wools and cottons at £45 (last season are starting price was £80 for Barbour). We haven't stopped doing Smedley at £138, or Slaith Cashmere at £220, but we realised that we were missing a big chunk of the market by not having an entry price point.
If our shop's top end knitwear was £45, it wouldn't be a desirable place as such, but putting £45 knitwear in a shop that also sells knitwear at £350 makes that £45 piece more desirable. This is a very important marketing tool that Meridian seem to be missing out on.

I did some consulting for a large footwear company last year, and noticed the same thing, it was looking at someone else's company that made it glaringly obvious that I wasn't doing it within my own company. Sometimes I think we need someone else to point out the obvious.

The other thing we have seen from fashion houses, motor industry, gadgets etc. etc. is a constant drip of info, whether that be product 'leaks' or a flash of 'concept' products to the general public. They can then gauge which products the customer actually wants.
This is where Meridian are going back in time, this closed lipped attitude is archaic and will be their downfall. Why not use the customer to find out what the customer wants? Everyone else is.

These are the areas where I believe Meridian is going wrong. There is no entry point, there are no products that keep the cash flow turning and to get new customers on board, and not talking to your customer just makes matters worse.

Unless there is a serious change, Meridian will disappear up their own arse.

All very well said: the analysis of markets in many sectors and the comment about Meridian. I hope they are reading and take your advice.