One thing that has not been discussed is that you cannot directly compare dollar for dollar retail prices with factory direct. Equipment comes from a factory, then goes to a distributor and maybe even a wholesaler and then to a retailer, who then has to sell the item to make a profit.
In any case there are at least 2-3 doublings in price from factory to retail. For example, Emotiva's CD transport for $400 should not be compared against a $400 retail transport. As far as value is concerned that $400 factory transport is actually like a $1600-2000 retail transport. The same goes for all the other equipment (amps, DAC's, speakers, etc.).
There is one problem with factory direct in that manufacturers don't make any money until they sell and they usually don't have a lot of storage space for product. While the other's involved in the retail chain have some leeway with that time factor because they are building storage and supply chain costs into their prices. Therefore if a factory direct dealer gets a lot of orders for a hot product, it is unlikely that they could keep up with the sudden demand.
In any case there are at least 2-3 doublings in price from factory to retail. For example, Emotiva's CD transport for $400 should not be compared against a $400 retail transport. As far as value is concerned that $400 factory transport is actually like a $1600-2000 retail transport. The same goes for all the other equipment (amps, DAC's, speakers, etc.).
There is one problem with factory direct in that manufacturers don't make any money until they sell and they usually don't have a lot of storage space for product. While the other's involved in the retail chain have some leeway with that time factor because they are building storage and supply chain costs into their prices. Therefore if a factory direct dealer gets a lot of orders for a hot product, it is unlikely that they could keep up with the sudden demand.