the viability of hi end companies


it amazes me that there are so many companies selling audio components, given the small customer base, and poor economic conditions.

obvious the marketing approach is a factor, but if one depends upon sales of components for a livelihood, i am surprised that so many companies exist.

it seems the trend is direct marketing on the internet , low overhead, and sales providing a second, rather than primary income, as the way a company can survive. it still is a surprise that so many companies sell cable, digital components, amps, preamps and speakers.

one would think that the number of such companies would be shrinking rather than expanding.

any thoughts ?
mrtennis

Showing 1 response by hiendmuse

I read fairly recently that there are over 200 turntable manufacturers in the world- over 200!!! Many of these are high end and quite expensive. It truly must be economy of scale. If a high end company sells only several $150,000 turntables annually with a very small staff, it can probably survive. These companies are likely provide equipment to select dealers, who demo it for awhile, then sell it on the used market.

What is surprising to me is that this niche hobby has lasted so long, with so many competing companies making different types of gear, for a very limited customer base.