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

@treepmeyer +1 

Its hard to know which brands are truly successful without seeing financials. I would start with brands that have stood the test of time without bottoming out financially or selling to big corporate,  which often results in the brand continuing in name only. 

Accuphase, Pass Labs, and Grado Labs come to mind. Burmester, T+A, and Zellaton are German brands that qualify. Audio Note, Kuzma, Air Tight are other examples and there are many more. One common thread is that all these manufacturers have been known for many years-decades-for building high quality, reliable stuff. As far as I know, they've not succumbed to the temptation of VC buyouts. Each of these companies have a loyal following and concentrate on their core business. They must be doing something right.

If I were the kind of guy who worries about serviceability and is keen to ship gear back to the manufacturer for maintenance, I'd have an all-McIntosh system.

 

@cbrez 

It’s one thing to think about a particular luxury industry in isolation, but I do think it is important to look at some in parallel as well. Watches, fashion, automobiles, etc. Each is distinctive, but are there are any similarities over time? Every Axpona (and other shows) we see in forums about new folks in the crowd. Curious to see what others think about how high end audio compares in this regard compare to other very high end luxury goods. I know that this is a broad line of inquiry, but why is high end audio at the brink (not saying it actually is) and other luxury industries are not (let’s not get into tariffs).

Because you can’t wear an MBL amp never mind one of their flagship speakers.

Tag and Omega increased their prices because they were a bargain compared to Rolex and have  better technology. Why? Because no one wants to wear a bargain status symbol. Marketing 101: What category of goods doesn’t reduce their prices in a recession? Luxury goods: audio is not a luxury item.

It seems to be in this category the company must compete on the world stage, marketing around the globe and have strong brand recognition. If one economy, market sector, bad international distributer stumbles another one is set up to pick up the pace.

If small and successful keeping your suppliers happy and your sales force profitable likely helps. Seems like those successful incorporate social media and are great networkers, drinking fine scotch and smoking good cigars. 

Not to get political, but say we look at Japan... What are the tariffs on hifi coming into the US these days? Seems like a potential game changer.

Prayers for all those in this business, nothing is easy for any length of time.

 

In any business segment, companies come and go all the time. Having been involved in the hi fi business since the 1980s, I think hi fi companies* have done pretty well on longevity.

*By this, I mean reasonably well established companies, as opposed to the one man in a shed companies that appear at hi fi shows.