Will Internet Distroy High End ?

Mikec your description could be my old dealer who closed up shop 5 years ago after finally burning out on the HT crowd. His hi-end business esentially ended 3-4 years previous to that. Then again this area isn't the 2-channel capital of the world. My take is that mult-channel will eventually be the hi-end of tomorrow incorporating movies and music. Two channel will die like the dinosaur probably did, one by one until the last one looks around to find he is alone and the last of his kind. I really don't see a long term future in 2 channel audio.

The volume of people who purchase hi-end on the net is less than one tenth of one persent of buyers.It will have no effect on legit dealers.The dealers who exclusively operate around the net will suffer the pains of the one tenth.

Audionut, I'd watch out. I've heard this type of confidence from many of my customers and watched them go down in flames.

First, I don't believe the internet will destroy hi-end. Where ever there is money (perhaps too much) and passion there will be a market place for products servicing this passion. But, the landscape is changing, and the retailer that ignores this will die. I work in the retail and manufacturing industry for household products, and I've seen it.

Think about all the changes that are occurring right now:

First, internet dealers are coming up to speed on the retail learning curve and the internet curve (this is still new to everyone so there is lots to learn). Sure there are some dopes out there (and crooks too), but they will be weeded out. The others will learn and become strong.

Second, the volume of direct-to-consumer sales will increase. It's always been there, but the internet will make it much easier and more efficient. Frankly, from a consumer perspective this is great. Not only will it be less expensive, but it will improve the customer-manufacturer relationship. And, it will eliminate some of the barriers to market entry (e.g. distributors, minimum marketing investments, etc.), enabling hot designers to go out on their own and build a business over time.

Third, the used equipment market will capture a larger portion of the consumer turns and upgrades. Again, the internet and sites like this make it easier than the days when we used to check out sources like AudioMart. Think about the percentage of your upgrades that have been via used equipment just from this site. As this site grows, so will the market of used equipment sold outside of retailers.

Net, times are changing. Add the HT influence, and I'd think that some smart retailers with good strategic marketing would be able to take advantage of the changes, change how they do business and make a good business while better servicing their clients (but, I'll bet that the profit margins decline - survival of the fittest).

Enjoy the music.

internet will change the retail behaviour, not yust for hi-end, but for *all* retail. dunno what the final results are, but retail as we know (knew?) it is history. longplate's example can be repeated w/most *any* commodity. dds-hifi may be headed on the rite track as to how some of these changes may come about.

but, hi-end *won't* die - as long as there are those who want the *live* sound in their homes, hi-end will exist. mite make it thrive ackshully, as prices could be forced down, & there's more potential for product exposure to more people...

doug s.

I think there will be growing pains as local dealers adjust to the new environment. However, the internet is making high-end audio known to an ever-widening number of people which can only be a good thing in the long run. I also think it may force companies to offer more value for the money as it is easy for people to share information about high value equipment and low quality equipment as well.

Personally, I'm thankful for the internet. With the price of good stereo equipment, I would have had a difficult time affording my modest system. Online, I picked up what would have cost around $4700 new for around $1400, mostly used. Besides a CD player and turntable for me, I needed a tuner, DVD player, and remote for my wife to justify the expense. Add the fact that it all sits in a big room with tall ceilings and you can see that putting together something at a local dealer would be difficult at best, especially considering that there are no decent used dealers where I live.

My choice, and I do not think my situation is unique or at all rare, was not buying online or buying locally, it was buying online or not buying at all for several years.