2. misc-audio
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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 jmcgrogan2

jmcgrogan2's avatar
jmcgrogan2
6,346 posts
 
Have you noticed how many of these companies have come out with a new top of the line product in the last 5-7 years that is at least twice the price of their previous top of the line product? Practically every single one of them.

These companies are selling fewer units but taking higher margins. That is how they stay afloat in this top down economy. There are plenty of folks out there with FU money.
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