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


.
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
.
128x128mitch4t
Jimaxp, I agree there are real risks for main street hiFi stores, but there is a model for how to survive. The clue, bricks and mortar. In the UK, nearly all the independents have closed their stores and operate from home, or a small lock up industrial unit. Stores mean fixed costs, requiring a certain turnover. Get rid of that and you get of a lot of your problems, you do'nt need a minimum turnover to cover costs, you still need a turnover to eat of course.
The remaining cost is mainly dem stock and that is becoming a problem. The dealers/distributors are'nt getting in Dem gear in the current environment. For example I am looking at the Coincident Super victory, partly from the Stereo Mojo review. The UK distribtor does work from home and wants to get a super victory in, in the current environment, he does'nt feel he can justify that. I want to hear the speaker, he can not be sure I want to buy it. I spoke to another UK distributor recentlty of many famous brands, one of the biggest in the UK, he says business is down 65%. He will survive by hunckering down, trying to keep ticking over and avoiding unnecessary costs.
Dealers and distributors, survive like any other business, by reducing costs, staff etc and waiting out the storm. The problem then is, how long will the storm last. It will be longer than most recessions in the last 30 years. Ultimately, that will be the killer.
Trelja:
"That idiot dilettante owner of my Philadelphia Eagles made the list of billionaires this go 'round, with the description "self made" no less. I guess mom buying you a football team with that Harcourt Brace money qualifies as being self made in this day and age."

I often wonder how many people posting and boosting of their financial prowess on the internet have been recipients of trust funds/inheritances/law suits/etc. When I lived in NYC I knew someone who was an only child - became a millionaire many times over after inheriting his mom's sizable assets (one hears this story repeated over and over in slight variations in the Big Apple). I knew this person from my social service circles, and he was unethical in many matters and definitely irresponsible in money matters, yet there he was working as a "financial adviser" for a big financial institution.
Recently purchased a Mac int amp at dealer for 20 percent off list. The sale person said it was Mac trying to aid their dealers. Makers of hi end may be well above the fray, but dealers I believe are having it a bit tougher.
Post removed