I'm leaving high end audio...

[Mike]

I feel your deflecting a little with the auto example. Were talking stereo equipment.

My perception is most company have entry models. Look at MSB. Look at Magico. Don't Magico still Sell the A1 to A5? I honestly don't know. Mike would know a lot better.

I have at times wondered, what fills the bottom line with these companies. Is it the few sales of really expensive pieces. Or is it the many less expensive items.

As a business, oddly, they are all trapped in a cycle I can not say they started. Us people desire new. We want to own what we feel is relevant. Or the best we can afford at our budget price. Owning a piece from a company that has not put out anything new for 10 years would probably be owning something from a company that is out of business. Being forced to produce new and better requires man power ($$$$$) and capital investment in equipment ($$$$$$). Its possible. I don't know, but its possible, even with the inflated prices of equipment, many of these companies may be struggling. I don't know. Most are not public. But we have seen some collapse. Dartzeel, MBL. Aren't there more.

Being Wilson and all the hype over the Autobiography might make buyers think, WOW. This company makes the best. Then they go to Suncoast Audio and get a set of Sabrina. And maybe a use pair of Ref 250 to drive them.

Indeed! They still have the A1, new A3 and A5.

 

[u-sound]

just imho, the industry is greater than ever.
Sytems for 50 dollars to 50millions in every color and shape. Every song available by a single click for free.

 

[Michaels HiFi]

I feel your deflecting a little with the auto example. Were talking stereo equipment.

My perception is most company have entry models. Look at MSB. Look at Magico. Don't Magico still Sell the A1 to A5? I honestly don't know. Mike would know a lot better.

I have at times wondered, what fills the bottom line with these companies. Is it the few sales of really expensive pieces. Or is it the many less expensive items.

As a business, oddly, they are all trapped in a cycle I can not say they started. Us people desire new. We want to own what we feel is relevant. Or the best we can afford at our budget price. Owning a piece from a company that has not put out anything new for 10 years would probably be owning something from a company that is out of business. Being forced to produce new and better requires man power ($$$$$) and capital investment in equipment ($$$$$$). Its possible. I don't know, but its possible, even with the inflated prices of equipment, many of these companies may be struggling. I don't know. Most are not public. But we have seen some collapse. Dartzeel, MBL. Aren't there more.

Being Wilson and all the hype over the Autobiography might make buyers think, WOW. This company makes the best. Then they go to Suncoast Audio and get a set of Sabrina. And maybe a use pair of Ref 250 to drive them.

Hi Kingrex, I wasn't trying to deflect (I felt the cars were the easiest example to understand) but to be fair to your question let me talk audio.

I think you are right talking about being trapped in a business cycle.

I think trying to find that right mix of selling less items at higher margin vs. more products at lower margin is a tough one for sure.

It's only in the last 2 years in talking with many hifi dealers - and companies - who've admitted the same thing about pricing I started to change my perception: with many of the high end prices it's about an ego price war of the company merely wanting to be able to say they have the most expensive item than any other real business analysis.

It's turned into what I call "ego pricing" in many instances.

I'm not saying one pricing method is any more valid than another. Only that I think Ego pricing is a very slippery slope in which their ego's and sense of self value is often much higher than reality.

I hope that answers better. If it doesn't let me know and I'll try again. I haven't had my morning iced coffee yet.