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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Yes, that is 3 and 1/2 million out of 200 million Americans. Next to Japan, we have the greatest luxury marketplace in the world.

That is a lot of rich folk.

PS: This comes from a company called IXI that tracks 9 trillion dollars in investible assets.

Who gives a rat's @#$ that the big companies are laying off. That has been a constant for 20 years. The real job growth engine is small to mid-tier businesses, entrepreneurial in spirit. I personally am not waiting around for GM to create me a job here in California.
Were in a primary bear market...for you young guys...the last one was 1970-74...the Dow bottomed at 574! Kinda hard to beleive. Parabolic bubbles and echo bubbles always retrace about 80 pct. So real estate prices will decline 50 pct....Now with possibly trillions of debt dirivitives tied to housing...and wall street and the politicians trying to resurrect this bubble....do you think the Dow will hold or go up? Your'e right if you guessed no....it's like raising the dead....and I don't think the 2nd coming is here yet.

Eventually the the Dow will hit below 4500 and maybe lower...if the financial system cannot clear....which the politicians and the bankers think will be too painful (for them).....so this thing will drag on.....the lost decade...it sure is shaping up that way...

but I hope...the people in power swallow hard and take their medicine....I can only hope.
I'm not sure you need to be a trained economist to look around and see many examples of 1) people who used to be able to afford $10K pre-amps who no longer can, and 2) people who still could afford $10K pre-amps, but are choosing not to do so. If you can see a number of examples by just looking around, and I think we probably all can, then it only stands to reason that it's going to have an effect.

And, assuming that this is prolonged, and only beginning, the effects are going to compound. Strange times.
IXI?

LOL!

Just perused their site. Looks like they're data skimmers. Too bad that so much of the data is still based on "Mark to Model" vs. "Mark to Market".

Those level III assets are gonna be fun to deal with!

As we have said on the HousingPanic Blog since late 2005...

Got Popcorn?
I’m an outsider, meaning I’m canadian and a used market buyer. My system now consists of 10 k$ units that I bought 25-40% of their original MRSP. All my units were about 4 years old when purchased. Considering the currency exchange rate between our countries and the after tax purchasing power of an average Canadian compared with American, that is the only way I found to finally obtain the dream system in my home.

The present topic brings two questions in my mind :

First, even before the present crisis, isn’t a sign that high end audio is way overpriced when equipment loses 40-60 % of its resale value within 3 or 4 years of its production ? We are talking about equipment that is built with life expectancies of 30 to 40 years with a depreciation factor of its value equivalent to an average car which will last only an average of 10 years.

Second, again without considering the crisis, how many sales would the high end audio industry lose buy turning the catalog every 4 years instead of 18 months ? Why always rebuilding the physical design, at superior cost therefore price to the consumer, when the main purpose of the unit (playing music) is not really improved ? Do first rank buyers of high end audio really renew their equipment every year or two to get the last look design in the listening room ?

In brief, could smaller high end manufacturers survive the turmoil by bringing their prices down and make their units available to more people by cutting in the “redesign” department and keeping in production their most successful units ? Furthermore, could they cut on the marketing expenses and still keep their distribution network alive on the reputation and high quality of their products ?