RIP Parts-Express (as we knew it).

[Jeff M.]

Looks like PE was bought out by private equity. They closed the storefront and I heard they fired all the storefront employees who I had a pretty nice relationship with. Talks about ending the speaker competition. This is probably the beginning of the end for them so get your orders in, I give them a few years tops before they're gone. The Enshittification of everything continues. Shout out to the owners of the company who decided to take a fat check and kill their company.

To bad parts express has decided to sell to a private equity. A lot of companies are going this way. So, Eric Chandler (miss my buddy in tech support) at P. E. I have been buying from P. E. Senc. 1990. I had known Eric senc. 1990. This is very sad news am reading. Too bad the owner didn’t give a chance for the employees to buy them out. Art van did this and didn’t last a year. .

 

[TubeDesigner]

I've been buying quite a bit of stuff from them after moving out of the large city and having to rely on online purchasing. This of course is horrible news, and I doubt that they will ever be the same, let alone "better" or even "as good". Crap.

 

[Jeff M.]

I have to add. Dayton Audio might adventure away and out side of P. E. with the new owners. This would be wonderful and great news. They could only sell through Amazon. Just an Idea so their offerings of the reference line doesn’t go extinct or sell through Madisound only. (So, Meniscus Audio Group Here in Michigan) After years of being a supplier in the Diy audio community Closed. I knew Mark and Chad. It was a real shame because I had a kit on back order but, Got a refund before the doors closed.

 

[Ezee]

The sticking point is that new owners now have the purchase debt to service. What this typically means is that the business revenue needs to increase and changes in the business model are implemented to speed up recovery of purchase price and return $$ to investors. It's possible we're already seeing this as PE seems to be moving towards becoming a retailer of completed products as opposed to parts and pieces. I imagine the margins in parts and pieces are increasingly hard to maintain, much less increase. Lots of directions it could go, but "business as usual" isn't in the cards for most private equity purchases.

carbidetooth,
I think your assessment is very fair and correctly acknowledges the small costs of business that many overlook. Small parts like resistors and budget capacitors have very small margins and could reasonably be the first items removed from the catalog. There is a cost to maintaining and storing inventory. There is a cost to fulfilling and packaging orders.

At some point investors/owners will calculate and determine that it costs (as example) $1.25 in labor, space, and overhead for an employee to place a $3 resistor (with a $1.50 margin) into a package for shipment. That will be compared against selling a $50 speaker (with a $20 margin) or a $300 amp (with $110 margin), and before you know it, no more resistors are being offered for sale.

Further adding to the inherent difficulty of small ticket items, investor-owned companies, compared to owner-operator also have additional overhead expenses that have to be met. Basically, by the nature of Parts-Express being bought by investors, it's overhead expenses are likely increased, adding additional expense that could possibly make small-profit items become no-profit items.

I wish them well. I have no doubt that they will continue to exist and thrive. The question is which inventory items will they no longer offer due to poor profit margins.

Elon

audio home speaker crossover components for sale assembly

Online retailer for home speaker crossovers including resistors ,capacitors, inductors, and internal solid core wiring, 16ga and others

ezspeakersolutions.com

 

[Ezee]

I've never heard of this vendor! I appreciate your mentioning them. EDIT: wait... is this you?

Yes, I am a parts-vendor for Crossover Components as well as some assembly labor. I also donate a lot of time providing layout diagrams for those who struggle to interpret a crossover schematic into an actual parts layout (proper orientation and confirming connections).

Because I am small and owner-operated (less overhead cost), I can provide additional services and support for the customer. I can take the moment to review someone's crossover schematic and assist them in understanding which parts should be upgraded, based upon their role in a circuit, and which have less need. When someone sends me photos of their original crossover PCB board, I can visually map the traces and provide them with a schematic that they understand.

My point in mentioning that I was a retailer was primarily for a tiny bit of credibility in my acknowledgement that crossover components (especially at the budget level) have small margins and are not high-profit items. I wish Parts-Express the best under new ownership. My long-term speculation for that future is that they would have to increase emphasis on higher profit-margin items, and move away from some of the low-margin items. Only time will tell to see what direction the new owners choose. Do they want to compete with Crutchfield? Or do they keep their foot in the DIY world?

Elon

audio home speaker crossover components for sale assembly

Online retailer for home speaker crossovers including resistors ,capacitors, inductors, and internal solid core wiring, 16ga and others

ezspeakersolutions.com

 

[Bruce Morgen]

I've bought something from PE maybe once every couple of years. The $99 minimum for free shipping is a major downside in a world where you can get lots of the small stuff I need shipped free via Amazon, eBay, or Aliexpress. My major score from them was the Dayton DSP-408 unit I bought when they were on sale for only $120 -- and the largest number of items I ever got from PE in one order was during that brief period a couple of years back when they reduced the free shipping threshold to $49. Of course, speaker DIYers are going to be the ones most affected by this acquisition, so I feel for them not knowing what's to come on that front. On the plus side, Danny Richie may have to find a new source for his "audio grade" (i.e. non-sandcast) resistors, so at least there's that.

 

[carbidetooth]

I've bought something from PE maybe once every couple of years. The $99 minimum for free shipping is a major downside in a world where you can get lots of the small stuff I need shipped free via Amazon, eBay, or Aliexpress. My major score from them was the Dayton DSP-408 unit I bought when they were on sale for only $120 -- and the largest number of items I ever got from PE in one order was during that brief period a couple of years back when they reduced the free shipping threshold to $49. Of course, speaker DIYers are going to be the ones most affected by this acquisition, so I feel for them not knowing what's to come on that front. On the plus side, Danny Richie may have to find a new source for his "audio grade" (i.e. non-sandcast) resistors, so at least there's that.

I think it's kinda funny when people bring up "free shipping" as a reason for purchasing or not. Realistically, there is only "shipping included in the price". No shipper delivers parcels for free. No company is likely to ship something for "free" if it eliminates the margin required to keep the doors open. "Free shipping" is marketing parlance and nothing more. I'd agree it's a very effective sales tool but consider it misleading. Big companies (like Amazon) can negotiate both with shippers and vendors to reduce product movement costs or even become a shipper themselves (Amazon). If it were not profitable, they would certainly not be in the space.
It would be a sad day for a lot of folks if Parts Express were to go away. It has filled a specialty niche in a small market and done it well for many years. As you may have guessed, I have great regard for small businesses in today's market where everything is considered a commodity. It's an increasingly tough row to hoe.

 

[a4eaudio]

...Realistically, there is only "shipping included in the price". No shipper delivers parcels for free. ...

I know what you are getting at, just like the free warranty isn't free, the 30-day no-hassle return policy isn't free, etc., but...the marginal shipping is in fact free.

If I buy two 12" woofers that come out to more than $100 then I get "free shipping". Sure, I can consider the shipping baked into the price. Now, if I buy four of those 12" woofers, the shipping hasn't changed. Thus, the additional shipping was in fact "free". I have probably only placed two orders in the last 10 years that were under $100. If I am at $90 it will probably cost be $10 in shipping for a total of $100. So, I throw in $10 of crossover components and the total is...$100. I literally received the crossover components for free.

 

[carbidetooth]

I know what you are getting at, just like the free warranty isn't free, the 30-day no-hassle return policy isn't free, etc., but...the marginal shipping is in fact free.

If I buy two 12" woofers that come out to more than $100 then I get "free shipping". Sure, I can consider the shipping baked into the price. Now, if I buy four of those 12" woofers, the shipping hasn't changed. Thus, the additional shipping was in fact "free". I have probably only placed two orders in the last 10 years that were under $100. If I am at $90 it will probably cost be $10 in shipping for a total of $100. So, I throw in $10 of crossover components and the total is...$100. I literally received the crossover components for free.

And thus, the idea of something for nothing perpetuates. In your example, I would assert that the shipping cost was "baked in" to the $90 and by presenting the illusion that you would receive something for "free" the seller got you to spend another $10. I'll admit it's very clever and effective marketing, but ultimately there is no "free". I'm not a curmudgeon but do dissect marketing because I find it sort of fascinating.
Many years ago, I was in the boat business. We traded in a boat with a plaque on the dash proclaiming "Ass, Gas or Grass, nobody rides for free". While that's kinda crass, I believe the principle still persists.

 

[RickS]

Placed a small order for connectors and cables. Online operation seems to be the same for now.

Will update when I get my order if there is any news to share.

 

[kemmler3D]

or not and other businesses will take their place and earn their business. Businesses get sold, fail, and started every day.

This is a nice thought but somewhat out of sync with the reality that competition among companies that PE tends to take over is low, meaning we simply see a loss of quality and service in the sector.

And this also ignores the very questionable way debt is commonly used in these deals to extract money from the victim businesses and transfer it to its new owners with no value created for the consumer. Should it really be legal to take out a loan to buy a business, assign the debt to the business, sell all its assets and take the proceeds for yourself, rendering it incapable of paying the loan, then walk away, leaving employees and customers bereft? Toys R Us was a solid and beloved business that was nuked in just that way... No need to condone (potentially) the same behavior here.

 

[kemmler3D]

While I am not a fan of private equity... If it is profitable, it will survive.

Tell that to Toys R Us...

 

[Dj7675]

This is a nice thought but somewhat out of sync with the reality that competition among companies that PE tends to take over is low, meaning we simply see a loss of quality and service in the sector.

And this also ignores the very questionable way debt is commonly used in these deals to extract money from the victim businesses and transfer it to its new owners with no value created for the consumer. Should it really be legal to take out a loan to buy a business, assign the debt to the business, sell all its assets and take the proceeds for yourself, rendering it incapable of paying the loan, then walk away, leaving employees and customers bereft? Toys R Us was a solid and beloved business that was nuked in just that way... No need to condone (potentially) the same behavior here.

You are claiming the original owner, with 30 years owning, operating, and selling a businesses a victim? That is totally nuts and upside down. He is not a victim. He is a owner, selling an asset of his.
The alternative is an insertion of government into everything. I would not want the government involved in any way in this process (or at least at the bare minimum). That is something I want nothing to do with here in the U.S.

 

[kemmler3D]

You are claiming the original owner, with 30 years owning, operating, and selling a businesses a victim? That is totally nuts and upside down. He is not a victim. He is a owner, selling an asset of his.

The business itself, not the owner.

The alternative is an insertion of government into everything. I would not want the government involved in any way in this process (or at least at the bare minimum). That is something I want nothing to do with here in the U.S.

... Uh, not sure what to say about that, except maybe that that ship sailed at least 100 years ago. Please don't start asserting anarchy is preferable to having laws against self-dealing, fraud, market manipulation, etc, I'm not in the mood for unfunny jokes.

I'm totally fine with the owner having sold the business and cashed out. More power to him.

What I don't like is "investors" pilfering otherwise viable businesses via what amounts to accounting tricks and causing them to fail that way, something they are only able to do because of the way the law allows them to structure debt against corporate ownership in the first place, or as you might put it, the government being involved in the process.

It's my opinion that PE typically exploits flaws in the law much, more than they actually create value for anyone. I don't think the public should necessarily tolerate that.

 

[Dj7675]

The business itself, not the owner.

Sorry, that makes no sense to me. The business is the victim by being sold and proceeds going to the owner for his work in time, money, effort? The government oversight, intervention, monitoring, deciding what, whom and how sometihing can be sold is not something I ever want to see. The solution you are talking about is something exponentially more harmful than the actual problem you are describing. Agree to disagree.

 

[a4eaudio]

..." the seller got you to spend another $10. ...

You missed the math. The point was I got more stuff and did NOT pay a single penny more (assuming we still use pennies). Receiving something (crossover components in my example) for zero additional cost is actually free.

 

[G|force]

We have a supermarket here called Grocery Outlet. When I spend $80 and the checker cheerfully says "You saved $38" I shake my head. I didn't save anything; I spent $80. It's clever marketing, nothing more.

 

[kemmler3D]

The government oversight, intervention, monitoring, deciding what, whom and how sometihing can be sold is not something I ever want to see

Hmm. Move to Antarctica then? We have had rules on these things since before either of us were born, and I am unaware of any jurisdiction with no such rules. Monopolies are illegal (and supposed to be enforced against) for good reason...

The business is the victim by being sold and proceeds going to the owner for his work in time, money, effort?

You maybe missed the important part of my first comment. I think a business can be called a "victim" when its new owners sell its assets, take the money for themselves, and render a viable business unprofitable and unsustainable entirely through their actions.

 

[carbidetooth]

You missed the math. The point was I got more stuff and did NOT pay a single penny more (assuming we still use pennies). Receiving something (crossover components in my example) for zero additional cost is actually free.

Perhaps it's a semantics thing. From my vantage point $10 was paid for perceived value. If we assume the shipping cost is built into the price of products, the (somewhat arbitrary) threshold of "free shipping" set by seller was simply crossed. Seller's margins were still met so I suppose nobody loses, but no money was actually gained...aka "free". For me, the point is this: As consumers we should understand markets and not be ignorant of marketing. I can see your point of view as do many. I just don't share that view.

 

[kemmler3D]

Regarding free shipping - there is a scenario which exists, if not as a rule, where free shipping is built into the cost, but at a preferred rate because the seller has a volume discount from the carrier (and those discounts are easy to get), but a "buyer pays shipping" site might not offer the same discount to buyers. The former situation is extremely common, but depending on how they set up shipping where buyer pays, the effective cost could be higher.

This will depend on whether they use a fulfillment house, how they pay for shipping, etc.

So in general "free shipping" obviously isn't free but, but the arrangement where the seller pays can still materially favor the consumer.