Magnolia Hi-Fi and Strong
"We get a lot of employment applications online," said Tweten. "It's a valuable tool of recruitment." He said that via the Internet, the chain attracts people who want to sell higher-end merchandise. And because Magnolia offers commissions, he believes there's greater incentive to sell up, or at least introduce new products. "We also handle all warranty work," said Tweten. "We sell extended warranties past the manufacturer warranties with a third party. It's reassurance. It's reassurance for a big screen TV knowing you wouldn't have a large bill. It's been successful."
There's more. Besides the company's own credit card, which he said encourages customers to keep coming back, the Magnolia Hi-Fi Guaranteed Performance Agreement (MGPA) targets four-year plans covered by the company's service department, including free check-ups, a loaner program, as well as nationwide coverage in the form of an owner-transferable, fully insured account. Tweten said that the program also comes with toll-free telephone support seven days a week, including in-home service for TVs, big screens and home theater systems, and replacement plans. A "no lemon" policy provides free product replacement after three failures, plus remote control coverage.
Tweten has bigger plans to open highly integrated sales and install stores throughout the West Coast. For him, it's realistic to assume that the store's future doesn't just bring life to its constituency's penchant for Denon and Marantz, but also to the family's rite of passage. It must be in the genes. Or, as his father once said, "We treat our customers the way we ourselves would like to be treated."