Originally Posted by KidHorn
Chad was lousy at CS and he effectively went BK over a year ago and has now made it official.
Having said that...
I think many of us are going overboard saying he screwed a lot of people or he had bad intentions. I see him as someone who made a good product at a good price and his company went bankrupt. It happens all the time. I don't think he's a criminal. I don't think he intentionally used faulty amps. He had to use inexpensive amps to sell at his price point and his manufacturer screwed him. It's not like he's the first manufacturer to be screwed by a Chinese supplier. He couldn't afford to replace all the bad amps with good amps and remain in business, so he shut down. He should have announced bankruptcy at the beginning of 2013, so at least people wouldn't have wasted time trying to get warranty service. Maybe he thought his business could recover.
I own a legend and empire and if they go bad (they still work fine), i'll probably take them to the dump and get something else. I don't think it's worth it to repair them and getting angry doesn't solve anything. They're just inexpensive subwoofers. They're not $30k cars.
Well, that's one way to look at it. Here's another one. Let's start with the premise that Chad is basically a decent person whose intention was never to screw anyone over. Let us also realize that the road to hell is paved with good intentions.
In the market Chad played in, the subs he sold are commodities. They're available from numerous sources just like sugar, orange juice, automobile tires, kitchen appliances, and so forth. Fighting for market share is not easy. The cost to build a sub is not only the parts but the labor, his fixed costs such as leasing space, utilities, advertising, packaging, labor, taxes, his salary, etc. At the selling price, there's a certain amount of profit and in order to cover all these expenses, he's got to sell a certain amount of subs a month. I suspect that he could not meet his minimum sales goals which may have necessitated him taking an outside job. That explains in part at least why he was difficult to get a hold of.
The Chicago area is not the cheapest or the most tax friendly place to do business. Had he been able to relocate to TX, NV, FL, or elsewhere he could have improved matters. OTOH, maybe he rewarded himself too generously.
Likely for competitive reasons, his warranty was longer than a year. He figured on a certain failure rate but I certainly doubt he actually could reasonably estimate it. From the posts here, it seems like he guessed wrong. By running through his supply of spares he probably found himself running through stock that was expected to find its way into finished product. Unless you know what you're doing, these multi year warranty on amps are dangerous. A better choice, would have been to offer one year with additional years at increasingly extra costs. Look at what happened with Emotiva and their. ultra subs. Five year warranty. Can't get them fixed, can't get them repaired, and there are reports of people wh two years into ownership are stuck with turds. According to Emotiva's warranty, they offer as an option your money back. Well, that's great but not so great for Emotiva. IMO, they'll take an overall loss on that venture.
Oh, and for the record, Epik Subwoofers was never registered with the IL Secretary of State as a business entity. FWIW, Seaton is.