Originally Posted by mannoiaj
Between av423 and eD, we have two very interesting internet business models that flopped but once were highly regarded. Is it bad decision making and leadership? Is it dishonesty? What is the straw that broke the camel's back for AV432. What is it for eD?
Well for AV451, they were going down no matter what because of the thefts from multiple raffles that were illegally run. While the cumulative thefts were on the order of 100K, my back of the envelope calculations indicate the amounts taken were on the order of a few million dollars. Throw in the enormous drain from the defective MFW-15 amps which had an extended warranty, and AV451 was screwed. It was dishonesty on multiple levels but it lasted as long as it did because the owner was quite charismatic and had an unparalleled user base that unknowingly provided cover.
For ED, IMO, it's also driven by amp and driver failures which is coupled with, as they themselves say, an industry leading 5 year warranty. It certainly seems to me that they're looking for ways to get out of honoring that warranty. Throw in the Internet with its ability to immediately broadcast both current and historical information through searches and now one is able to obtain a more complete picture of the company.
I did a Google search using the terms, "Ben Milne" & "Tang Band", which turned up a few pages. Many of them are worth reading but aside from past issues like their sound deadening liner for vehicles, I would say their past customer service experience was one not worthy of emulation. It still isn't. I did get the impression that they might have been a larger company during the reign of Milne. I also suspect that the housing bubble collapse along with the rise in unemployment has played a role in this.
Right now many folks are in the same position as former customers of AV451. Only a few of the many hundreds if not thousands, sought to enlist the aid and services of the government with respect to Consumer Protection Laws. Those that did, were able to recoup their losses but only because they acted while there still was money. Some also were able to recoup their losses through their credit card companies. Others were either ignorant, and I don't mean that in a demeaning way, of what recourse they had. Most people just trusted and hoped that if they waited long enough their situation would be made right. After all, buying a sub is not like buying a loaf of Italian bread from a bakery. If the bread sucks, you go to a different bakery. There's not that much of a decision making thought process involved in that.
But for a sub, people agonize over it. They spend hours if not days or weeks researching, asking questions, studying, etc. There's an investment not only of time but ego. When they pull the trigger, they're trusting that their analytical skills were accurate. That they didn't make a mistake. Having to go to the Attorney General's page and fill out forms, gather documents, make phone calls now becomes a tedious and weighty proposition. It means they have to admit to themselves and possibly others, they completely misread everything. They made a mistake.
If a company is operating unethically and violating consumer laws, I can't see the point of not taking action to protect yourself because if you don't, you might as well have just burned your money.