The Economy.. will hi end audio mfgs lower prices?


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The state of California just laid off 20,000 employees. National unemployment is at a 30 year high.

Will there be a shake-out in high end audio? Will we continue to see $10k preamps and $30k amps?

According to the article below, prices of most consumer goods, especially big ticket consumer goods are going down.

....copy and paste it into your browser

http://finance.yahoo.com/tech-ticker/article/176714/American-Retail-Goods-On-Sale-Now----and-Forever?tickers=sks,%5Egspc,%5Edji,wmt,jwn,wfmi,cost
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mitch4t

Showing 3 responses by andrewdoan

If you are the shareholder of a public corp. you want a good rate of return of your investment. In the US, cost of materials, labor, medical insurance, workman compensation....etc... these increasing overhead expenses will decrease your net earning per share. You have two choices : 1. jack up your price on the same product to keep the same rate of return of investment and running a risk of loosing cutomers to competitions or 2. Find a backward country or countries where labor is cheaper, medical insurance is affordable....to get a better profit and there is nothing wrong with making a profit in a trade of for the risk of an investment. It's a simple concept of economics 101. Red or Blue, you face the same problems. The question is would you'd rather have a temporary solution to a permanent problem or you want to survive ?
Direct sales probably the only way for hi-ends company to survive. I know my post will be deleted but this is the fact: I receive 20% discount from certain hi-end retailers and they still make quite a bit profit above "dealer cost". Sorry to offend any dealers in this thread but 40/60 cut to order a piece is quite a it of profit. That does not include "incentive" from certain manufactures Only my bloody lawyer charge me that much !
I know this is off the topic of the thread but since there are some related issues about illigal immigrants and China. I would like to add my two cents. I love the people who takes care of my yards. I don't care where they are from. They charge half the price the local company wants to charge me. They come on time. They do their job and leave. They do take their times smoking or shoot the bull over the cellphone. As a matter of fact, they do much a better job than the other well-trained "yard technician". Yeah, keep on bitching about China or Dubai. Without their money, I wonder where we are right now but I know one thing that Hillary is or was in China begging for them to invest and to have trust in the US T-Bills.