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I don't know...it's kind of a racket...

Posted by Chris Garrett (B) on May 7, 2006 at 16:52:45

In Reply to: Expanding High End Audio posted by lenw on May 7, 2006 at 15:04:46:

As per pricing, which is ultimately the way to get more lay people into the hobby, you'll basically have to go the McDonalds route vs. Tiffanys, with volume sales driving your profits if your ultimate goal is to increase your 'fan base'. Give a decent product at cheaper prices nd people will flock. Now, if you want to cultivate an 'exclusive' image, they you want to price the undesireables out of the market, so you keep your prices high.

To be fair, there are 'budget' sleeper components out there that offer performance that belies their price point, but the hard part is getting the word out to those buying the mass market Pioneer rack systems at Best Buy, Frys and BrandsMart, et al.

As far as R&D goes, I don't really know what % of one's budget is apportioned to this facet, but maybe these boutique manufactures need to start targeting different demographics. I subscribe to STUFF magazine, similar to FHM and MAXIM and they always do sections with pricey GUY GADGETS and every once in a while, they do some HiFi stuff, but I never see any adverts (essentially these magazines are one big compendium of expensive guy shit) for any HiFi stuff.

Maybe if we see more ads in places like these, these guys would ramp up their sales and the prices would drop due to volume?

To be frank, when you get to a certain level, it's all flavors and preferences for the most part. You like X and I like Y, both are easily discernible from those Pioneer and Marantz racks and so we're ultimately spinning our wheels bashing on one high end brand vs. the other. What we should be going after is that lowly mass market segment and making prices a bit more affordable. Advertising and marketing do work to a degree and people don't mind spending a bit more for what they perceive is a nice jump in quality. Also, much like with cigarettes and cell phones, once you get them hooked, they're yours for life unless you kill or screw them over.

Personally, I'm not on the DSP bandwagon but it has its place in Mass Market HT rigs for sure. Whether diamonds are better than silk, which is better than some exotic ribbon, I'll not comment.

If the hobby wants to expand, they have to reach out and that's only going to happen with direct targeting of non-harvested markets. If a guy can go out and spend $500 on a pair of shoes and $5000 on a gaudy ass watch, he will certainly go for a nice stereo rig above and beyond the typical Krell, B&W, Martin Logan fare offered by the semi-high end retail chains. I'm not bashing B&W, just pointing out that they are one of the few high end brands offered in the semi-boutique chain stores that I've frequented here in Miami. Obviously, they are a healthy company and their prices are not so far into outer space as to preclude some person with disposable income, from joining the fold.

I don't know if this answers the fellow's issue of 'expanding' the markets, but it's my take on the hobby.

Later, Chris

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