thielaudiospeakers
We’ve all heard the colorful rags-to-riches stories about people starting up little home-based businesses that grow into respected international names and products. It really happens that way sometimes. One local example is Thiel Audio, a high performance loudspeaker manufacturer based in Lexington.
“We began in a 900-square-foot garage with a dirt floor in 1977,” said Kathy Gornik, who along with the late Jim Thiel, founded the company.
Thiel, pronounced “teal,” builds high-performance audio components, including 13 models of loudspeakers that are shipped nationwide and to 30 countries from its 25,000-square-foot facility on Nandino Boulevard in Lexington.
Thiel doesn’t build speakers for stadiums or auditoriums, although the company has a few commercial customers that require excellent sound for boardrooms or multimedia rooms. The vast majority of sales are to dealers and private individuals who relish remarkable sound quality.
In the early days, Jim Thiel did design and engineering; brother Tom, no longer with the company, was a woodworker responsible for the beautiful speaker finishes. Gornik handled marketing and sales.
Jim Thiel, a University of Kentucky physics graduate, had been working in audio, designing electronics for studio and stage applications, but he always believed he could improve the entire field of audio with a great loudspeaker. He began experimenting.
Thiel’s research pioneered the principles of time- and phase-coherent loudspeakers through integration of phase-correct crossover networks and time-aligned drivers. His designs included innovative engineering techniques to reduce cabinet diffraction and resonances through the use of rounded baffles, heavy internal bracing, and unusual materials like aluminum, marble, even concrete. His breakthrough designs and assemblies reduced distortion and produced more accurate frequency response.
“Eventually, Jim came up with a speaker design and we offered it for sale,” said Gornik. “We contacted our first dealer, called Sensuous Sounds, in Frankfort. I remember bringing back our first purchase order, and we all just stared at it, realizing we were actually going to make these speakers and sell them.”
Thiel has a manufacturing area at its facility and also a great music listening room. The company has about 15 employees and is getting ready to hire.
“During the economic downturn, we’ve cut back and our revenues have been down. But we’ve done a good job of controlling expenses,” said Gornik, who, despite what federal economists say, believes the recession lives on.
Since Jim Thiel’s death in 2009, the company has outsourced activities like North American sales and public relations. It has also contracted with several engineering firms for design and assembly work.
Gornik likens Thiel’s business plan to conducting an orchestra. “If you want to have a great symphony, there isn’t any one part that dominates. You need great products, good quality control, great employees, a good customer service policy and sales, marketing and promotion,” she said. “If you get it all together, you create a company like we did.”
Gary Dayton, tech support chief for Thiel, believes his area is crucial. Naturally, the company assists new audio owners in getting their systems and associated equipment set up. But there’s also a vibrant used trade of Thiel equipment; their classic models are still collected, refurbished and enjoyed.
“Some want to use some of their old but very good equipment in a modern surround-sound system,” said Dayton.
Parts blow out from extended use, and Thiel advises customers on how to get them running again. It’s not just about selling new equipment, but, also keeping old stuff operating too.
“We’ve been in business 35 years, and thousands of our speakers are out there, maybe 41or 42 different models. There’s probably only three or four parts we no longer service,” said Dayton.
The mere mention of an audio rival’s name brought this feisty reaction from Gornik: “Bose is not a competitor.”
“We’re in a much higher-end market,” Gornik said. “It’s like comparing Hyundai to BMW. There are cars or audio gear designed for a mass audience. Bose has many very good-quality entry-level products and spends a huge amount on promotion. You see a Bose ad on the back cover of Parade magazine in every Sunday paper.”
“Aficionados who love great sound and music and who want to re-create it in their homes can easily pursue their passion through companies like ours,” Gornik said. “It’s not fair to compare us with them.”
Gornik said Thiel will continue to invest in research and development of new models. Currently, it is working with a company to design a home theater speaker.
“We’ll manage this very difficult economy by introducing exciting new products in our area of the industry,” she said. “If we persist and stay smart, we’ll succeed.”
Dayton said the economy is always on their minds, but he’s philosophical about it.
“It’s a tough time to be selling luxury goods,” he said. “But listening to music and enjoying movies are really important to people — part of the human experience. Even if the economy continues to sink, people can seek solace with their families in their homes and enjoy music. We’ll be around for them.”