The death of ultra hiend audio


Verity and DarTzeel last year, now MBL, ultra high end audio manufacturers are facing their demise and they have nobody but themselves to blame. What do these companies have in common: too much investment in creating the very best and when that fails raising their prices bottom up to recover their losses and inevitably charging 2x what the same product cost just a few years ago. Ego, greed and poor management can only result in one thing!

hiendmmoe

Companies Cease Trading for numerous reasons.

As for many where a product is a design to produce a very particular service, a strong communication with a Customer Base is paramount, as there are others ensuring there own products are extremely well exposed.

Lose exposure, is losing vital influencing, losing vital influencing is losing closed won sales and then the overhead is in trouble.

Blaming the pricing of the products for sale as being the detriment is only one portion of the overall pie, a Customer Base needs their own reassurances, that are beyond what is written sales spiel for a product.    

Is Dartzeel out of business? I hadn't heard that and their website seems current?

@fuzztone What I was trying to say is that some of these companies are trying to continue business as before, not changing their business model, but are no longer good enough at it to make it still work without their founders…not necessarily greed or ego...

 

This can be a chosen business model, firms can sell to a larger market at relatively lower price vs a much more exclusive market at high prices. Capitalization costs are generally going to be lower for the firm serving the exclusive market which means higher profit margin per item sold. Assuming we don't see parts and assembly costs that substantiate these extremely high prices, perhaps a firm could cite R&D as a reason for the high price. This may or may not be true. Do we see some actual new technology in all these products? 

 

I suppose one could research the personal financials of top management at these companies in order to to gain some insight into where money is going.