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MBL Insolvent

I apologize if someone else has started a thread I missed, but reports indicate that MBL has initiated insolvency proceedings under German law. Not all businesses succeed- its a feature not a bug in a free enterprise system- but hopefully new investors will come in and save the company. This seems to be following the way of Audio Research (fortunately saved) and others-lots of uncertainty surrounding Dartzeel, Krell, etc, which is unfortunate. So many of these manufacturers are small businesses, obviously without huge capital reserves and sometimes without a good succession plan when the founders move on. I hope MBL successfully restructures, it makes great products. I think we all benefit from a healthy, vibrant group at the top end that has the resources to create and innovate. Good luck MBL.

kerrybh

Showing 2 responses by daveyf

daveyf's avatar
daveyf
3,026 posts
 

One thing that seems to be missing from a lot of high end manufacturer’s business plan is this: offering a product that qualifies as "value for money".

 

There are a lot of really good high end pieces that have interest to the hobbyist, until the price tag is looked at. Then the typical hobbyist smiles and walk away. Not so much (although this is certainly an issue with many) because the piece in question is unaffordable, but more because the purchase decision is altered by the fact that the price asked is simply not reasonable for what is being offered. 

We have folks in the high end audio business who believe that their goods are worth whatever price they ask for it, because there are people who can afford it....IMO, that is a fundamental business error. One which I believe the principals at MBL had.

daveyf's avatar
daveyf
3,026 posts
 

@yyzsantabarbara   While you may be sarcastic, there are folks in the high end industry that think that business plan is a solid one. I know of a high end manufacturer who was told by his Far East dealer/rep to increase prices considerably, because that would impress his clientele and add value to his line. Unfortunately, as soon as he raised prices to the levels that he was requested of, the sales dried up..

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