2. misc-audio
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Is Hi-fi getting more expensive?

When I first get into high end audio in 2003, $3000 can buy you a very good cd player. Now $3000 just get you started. All of sudden, most of the major high end cable companies all ask $10,000.00+ for their top of the line speaker cables. The economy is bad but you don’t see high end audio getting cheaper. The entry ticket to Hi-Fi is getting more expensive and Hi-fi is getting far away from average people.

I guess the reason is that if the economy is bad, less people buy high end audio. So companies have to charge more for each unit to cover their development cost, and even fewer people will buy their equipment. This will be a vicious cycle that never ends. I think some company should cut the price by 50% to break the cycle. I know there is lots of pressure for companies not to follow the price trend when one cable company list its cable for $10,000+. If you don’t follow it, people might think you cable is not as good as the high price tag cable. But if you cut unit price by half, your sale volume can go up to make up your lower price. Volume is important. Windows 7 is more complex and powerful than Sooloos, but why Windows 7 is $200 while Sooloos charge yoy $10,000? You can also look at computers, they are always getting faster and powerful while still keep at the same price point or cheaper. Once other companies see the benefits, they will join it too. Pioneer and Sony are not incapable of making great audio gear, they just choose not to because of the tiny market size. If big companies like Pioneer or Sony see there is a big market for high end audio, they will come and join the game.

I feel Hi-Fi almost double its price from 2003-2009.We really need some companies to take the first step(cutting the price) to break the vicious cycle. Now these days more people are listen to compressed music like MP3/ipod. We really need to find a way to attract more people to good quality audio to benefit all of us, otherwise we all lose in the end.

This might be my wishful/unrealistic thinking. People are welcome to share their thought.
yxlei

Showing 1 response by mrtennis

mrtennis
3,295 posts
 
the demand for above 20,000 components is inelastic. that is it may be wiser to increase the price and sell a little less, when introducing new products.

how many compoanies have annual revenue in excess of one million dollars. if you can sell more than 4 components costing 250,000 each, provided there is sufficient eposure, reviews, hype etc., it may be a wise marketing philosophy.

high end audio represents conspicuous consumption. whether one is a music lover or not or ever turns on a stereo, top ceos of fortune 500 companies may pay over 100,00 dollars for a stereo to impress other ceos or as a status symbol to demonstrate their wealth.

in these "times", raising the price of already expensive components , even at the expense of selling less to a few consumers may be wise.

other companies may emulate such a paradigm and go into business selling expesnive components. thus in the context of companies entering the market, some will use one model--price while others will use another, namely , quantity.

depending upon the econmomic model you will either see high or moderately priced products.

if it seeems that that year -over-year, prices are going up, it may mean more companies are adopting one strategy or another.
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