Wednesday, August 20, 2008

The Ethics of the CEDIA business

I haven't heard much about the topics of ethics in our business in or out of CEDIA. Certainly we all have an interest in ethics in our relationship with our employer/employee and in dealing with the customer. Ethics is often discussed in the context of financial and sales dealings with the customer and this makes perfect sense. I haven't checked the course offerings at EXPO in great detail, but I don't think we have a course specifically out the ethics (pardon if I missed it). However, I would like to bring up an issue of TECHNICAL ethics. Specifically I would like to find out your thoughts on recommending, selling, perhaps even "going along with" equipment for the customer who's technical claims are, shall I say, not exactly verifiable.

Let me use an easy example: speaker cables. This could also apply to dozens of other products/devices from gold plated connectors to amplifiers and speakers. We are all familiar with the almost completely subjective claims made about certain types of speaker cable. We've all seen the 10 ft. cable that looks like garden hose selling for $8000 (or more) that claims to substantially improve the sound (performance, IMD, clarity, frequency response, etc.).
Some of you reading this may actually think that it does (if so, I'll be glad to debate that "off-line").
Let me ask a few questions here. Assuming the cost of the cables is not an issue for the customer, should a CEDIA dealer sell them? If it's OK, should they inform the customer that the manufacturer claims are not really verifiable and that they may not, to the customer, offer any actual sound improvement over table lamp electrical cord?

You might say "what's the harm?". After all, the customer can afford it and thinks they're cool. The customer may even have suggested it in the first place. Isn't this similar to someone who wants to buy, say,a Ferrari instead of a Lexus? What's the harm, particularly if you're making the margin?

Well, in the case of the Ferrari, the customer clearly understands that the car does exactly the same thing as a Lexus (or a VW for that matter), BUT he also clearly can tell the difference by driving the car ( I would assume, I've never actually driven one).
In the case of the speaker cables, the customer can't (honestly) tell any difference between a normal speaker cable (14/2) and the garden hose. Yes, there's the placebo effect. Besides, maybe the customer just wants the status symbol of having speaker cables that cost $8000, who cares?

In my opinion, we SHOULD care. To me it's unethical to basically rely on a placebo effect to sell products. I think we have an obligation to understand what products and product claims in our industry not only do what the manufacture claims, but those claims are clearly verifiable. If not, we have a responsibility to inform the customer that certain claims about the product are either questionable or not detectable or verifiable and/or that equipment that costs less may provide equal or better performance. I think we should not only promote a reputation for professional technical skills, but for professional and ethical technical skills. No we're not the equivalent of the FDA, and the burden for "product integrity" will have to be on the shoulders of individual dealer/installers. Could CEDIA help? Maybe, but it's really a political "hot potato".
What do ya think? Not an priority?