What High End Manufacturers Could Learn From Bose

The Nature of the high-end market will always mean it is small. Any manufacturer that goes for mass market numbers, by definition, will no longer be high-end. For truly high-end stuff, there is no 'entry level' to it. Or, the level of entry required is just that - fairly high, due to the nature of the product (e.g. $2000 or whatever).

BTW Jvia - diamonds are a poor comparison. Personally I get way more life and pleasure out of a 2k amp than a 2k rock. Of course the girlfriend (wife to be) may not agree... But ultimately diamonds are the most over-valued commodity there is, propped up by an industry-controlling cartel (DeBeers) which is sitting on a huge hoard, that if ever released at one, would destroy the market. Intrinsically (e.g. based on scarcity) diamonds are worth at most 1/4 or less of what they sell for. If it was really an open market on them, prices would be much less. To wit: Rubies are much more scarce than diamonds, yet diamonds nearly equal them in price up to a given point in size. Wacky.

-Ed

Actually, both Martin Logan (marked-and-bloated) and Krell (smell) DO market to the masses. About two years ago, both lines began to appear in the SoundTrack chain retail stores.

That confirmed what I had always thought about tonally inacurate equipment...people LOVE it...

Geeze, I would hate to think what my Revel speakers would cost if Madrigal spent as much on marketing as Bose!!!! Look at how expensive those pitiful sounding Bose systems are! I remember sitting in the Bose HT suite at CES a few years ago. They acted proud of those crappy tiny speakers.

interesting thread--reminds me of the case study i worked on Chivas Regal (the worst scotch around). Chivas was a marginal player in the low dollar blended scotch mkt, and meer fodder for jokes amongst single-malt scotch conniseurs..but then chivas did 2 things: new box / packaging, and raised their price. results go against economic theory (sales increased!), but testify as to the effect of a good marketing program.

this has a lot in common with audio. high end audio is the equivalent to the scotch conniseur--who knows what regions were known to produce good scotch, what labels / years to watch for, etc. point being, they're very educated about product, and as such have no problem paying $80 for a liter if they think its amongst the best. of all the people who own stereos, how many are very educated about product? only those on this board.

audio has a couple serious problems, financial aspects aside. in order to compete w/ mass mkt product, they have to educate the public as to how much better it can get. and to do so requires retail outlets for demonstrations (and we all know the difficulties for the highend retailer these days).

couple that with these factors: bose recognizes 3 things in serving the market: 1) product must have aura of high-end (face it, most people think its the best!), 2) product must be at a price point that is still discretionary, and 3) product must be small (i.e. households buy furniture, and when speakers are not in use, they're furniture---best to keep em small guys else the wives don't like it).

so what is one to do? madrigal has a good starting point w/ the multi-dimensional line (levinson in lexus), and would be well served to purchase the gallo speaker technology and begin w/ a new brand...

the rest of high end will always be a cult.

rhyno

High-end audio is invisible - but it need not be so. Take Porsche as an example: how many people can afford one? How many people actually buy one? And how many WANT one?

Porsches are not cheap, they are not compromised (well, maybe their new cheapo ~$30-40K models). Hi-end audio can also remain expensive and uncompromised and be desired by the masses (is this not the definition of of being a target of desire in the materialistic world? :-).

So why are we not there yet? I am not a marketing maven, but it may have something to do with the fact that I never see anyone parading around the city with their brand new, bright red, Revel Salons (i.e. the 'show-off' factor is severely lacking ;-). In this way, high-end audio is like fine wine, fine furniture, (fine art does have somewhat a reputation amongst the masses, though, but only the very, VERY high-end)...