HiFi Subjectivist ¦ Audio Forum ¦ NVA User Group

It's not fair you have to deal with this crap. As train guy would say "it's a whole mouthful of pig's tits but it's gotta be swallowed whole"

It will make life harder for artisan manufacturers. Some will give up selling to the EU completely, others (like ourselves) will be forced back into the mainstream.

Distributors and dealers will be happy.

savvypaul wrote: ↑Sat Feb 20, 2021 6:09 pm It will make life harder for artisan manufacturers. Some will give up selling to the EU completely, others (like ourselves) will be forced back into the mainstream.

Distributors and dealers will be happy.

Will you publish the EU dealers on the NVA site once you know which it will be?

Hannes-Gregor wrote: ↑Mon Feb 22, 2021 11:15 am

savvypaul wrote: ↑Sat Feb 20, 2021 6:09 pm It will make life harder for artisan manufacturers. Some will give up selling to the EU completely, others (like ourselves) will be forced back into the mainstream.

Distributors and dealers will be happy.

Will you publish the EU dealers on the NVA site once you know which it will be?

Yes. Definitely.

I feel for you Paul, the uk should be making life easier for manufacturers to sell goods, not harder. I thought this brexit was supposed to make it so we sold goods abroad more easily, and we managed ourselves.

antonio66 wrote: ↑Mon Feb 22, 2021 1:41 pm I feel for you Paul, the uk should be making life easier for manufacturers to sell goods, not harder. I thought this brexit was supposed to make it so we sold goods abroad more easily, and we managed ourselves.

I'm instinctively pragmatic, but 'as is', there is no way around it. On the upside, it will bring NVA to more people, albeit at a higher price tag.

I think Brexit was conceived partly to make it harder to cross borders without friction and cost - it is succeeding.

Sorry, Paul, there is only one way out of this financial mess, and it's not easy for me to say this, and probably even harder for you to appreciate, but I'm afraid you'll need to befriend Michael Gove and start pretending to produce Audio PPE.

It is not only British exports which are being hit. I have noticed empty shelves at my local super market, Belgian chocolate being a prime example.

savvypaul wrote: ↑Sat Feb 20, 2021 11:47 am Update on sales to EU countries.

We have concluded that the new trading arrangements with the EU, introduced on 01/01/2021, simply are not compatible with direct selling of NVA products to individual customers in the EU Zone.

The additional costs involved for the customer (VAT and customs fees), the extensive paperwork, possible delays and difficulties with returns mean that direct sales, cross border, will be a much less attractive proposition for both customers and ourselves.

When NVA returns to the EU, it will be through a distributor and a network of dealers. Customers want an easy, painless way to try your product. The new arrangements are the opposite. Plus, if your product is going to be more expensive, anyway, then you may as well go for convenience and wider promotion through a dealer network.

Is there any reason why you couldn't set up an NVA sister company? NVA Poland. That does manufacturing in Poland and whose main mission is to sell NVA direct to EU countries?

Lindsayt wrote: ↑Tue Feb 23, 2021 10:03 am

savvypaul wrote: ↑Sat Feb 20, 2021 11:47 am Update on sales to EU countries.

We have concluded that the new trading arrangements with the EU, introduced on 01/01/2021, simply are not compatible with direct selling of NVA products to individual customers in the EU Zone.

The additional costs involved for the customer (VAT and customs fees), the extensive paperwork, possible delays and difficulties with returns mean that direct sales, cross border, will be a much less attractive proposition for both customers and ourselves.

When NVA returns to the EU, it will be through a distributor and a network of dealers. Customers want an easy, painless way to try your product. The new arrangements are the opposite. Plus, if your product is going to be more expensive, anyway, then you may as well go for convenience and wider promotion through a dealer network.

Is there any reason why you couldn't set up an NVA sister company? NVA Poland. That does manufacturing in Poland and whose main mission is to sell NVA direct to EU countries?

No problem setting one up. Making it profitable is an entirely different question. Around 5% of NVA business is currently in the EU. That level of sales wouldn't scratch the surface of the costs of premises, taxes, rates, utilities, accounting, duplicating stock holding etc etc.

If you want to start a direct sales business from scratch then you need a significant amount of start up cash and a serious marketing budget. To duplicate NVA in Poland, that would probably be around £20k in start up and around £6k per month in marketing - and those numbers are conservative. Then, of course, you may lose it all, if you can't get traction.

A distributor will agree to buy a set amount of product for a set price, up front. They will take care of the import procedure, they will place the product in dealers, they will get the product in magazines - reviews and ads, and they will do shows. No upfront funds required on our part and many, many more people will hear NVA. If it works and we get regular orders from the distributor, we set up a 2nd base in Poland, knowing that it is already paying it's way.

Meanwhile, in the UK, the direct sales model can work, but only in a very small scale way. And, it depends on me providing it with a free premises, and me not taking a wage from it. If we want to do more than that then we are back to either spending serious marketing money every month, or putting the product through dealers. In the UK, our plan is to continue the low cost, direct sales 'purist' range (Model Worker / Artisan) that works brilliantly with the right speakers, and the right buyer (who has the intelligence to understand the NVA approach)...plus a more universal product, sold through dealers, for those who want the convenience of dealer facilities and who need something that will drive their WAF speakers.

The myth that some like to repeat is that Richard was able to come back, with a viable direct sales business, due to the power of the internet. 'Build it and they will come' is the mantra - I'm afraid it's bollocks. Richard was able to come back with a direct sales business because he already had a loyal following - and that customer base was built up through people hearing NVA products at dealers and seeing it in magazines. He kept that following going through here, but he didn't acquire it here ..and, one way or another, acquisition costs money.