In the wake of its acquisition by Bose last November, I have learned that there has been a significant shift in McIntosh’s go-to-market strategy. Multiple sources are reporting that McIntosh Group has terminated all independent manufacturer sales representatives. This move appears to contradict statements made by a Bose executive during the original announcement of its acquisition of McIntosh in November.
Learn more about McIntosh terminating its sales representatives
This week brought multiple communications from the field informing Strata-gee that McIntosh has terminated all of its remaining independent manufacturer sales representative groups. The notices of termination were made at the beginning of this month and will be effective as of January 31, 2025.
The announcement was met with a mix of resignation and anger by some reps…and shock and surprise by some McIntosh dealers. Most of the terminated groups have been long-time representatives of the brand – many for years, some for decades.
Specialty Brands Typically Rely on Specialty Reps Serving Specialty Dealers
Of course, Bose has long relied on factory direct salespeople, and some point to this fact in suggesting such terminations were inevitable. Others suggest that the multiple sales teams were redundant, and this kind of rationalization is not uncommon in acquisitions. That is true in a combination of equals, but in this case, a large consumer brand has acquired a smaller specialty brand, and specialty brands often rely on the close relationships between its independent specialty sales reps and the specialty dealers.
However, this move by the company appears to contradict certain statements made by Joanne Berthiaume, Bose head of Global Public Relations and Communications, back in November when the acquisition was first announced. Local TV station NewsChannel 34 in Binghampton, New York – the longtime home of McIntosh Laboratories – quoted Berthiaume as saying, “McIntosh will remain in Binghamton, and this announcement will not impact the workforce.”
McIntosh Has Already Transitioned to a Hybrid Salesforce
I reached out to Berthiaume by email, seeking a comment on the apparent contradiction. She responded, “All of the information we currently have to share on Bose’s acquisition of McIntosh Group is included in the press release we issued back in November…” A follow-up outreach seeking clarification of her comments based on these recent developments was not answered by the time this story was posted.
Over the years, McIntosh had transitioned their salesforce from one consisting entirely of independent manufacturer sales representative firms – to a more recent hybrid configuration that includes some factory direct sales in certain areas. The direct salesforce seems to have been concentrated mostly on the coasts, while the middle of the country has remained the domain of its independent salesforce.
Apparently Choosing to Use Factory Direct Reps
It would appear that the company is choosing now to move to a salesforce made up exclusively of factory direct salespeople. We don’t know if this will be McIntosh-specific factory direct salespeople, or if Bose factory direct salespeople are adding McIntosh products to their bag.
It is also not clear whether the company consulted the McIntosh dealer base before making this decision, or if other factors are at play here. I reached out to McIntosh for comment on the situation, but did not receive a response prior to posting.
For More Information
See more on McIntosh products at mcintoshlabs.com. And read more about its parent company, McIntosh Group at mcintoshgroup.com.
Learn all about Bose at bose.com.
Scott Soloway says
Independent reps are not employees of the brands they represent, so they’re not part the brands’ workforce. There is no contradiction here.