Scale. my sense of the industry is in tough times the juggernauts have economies of scale and can manage cash flow if they're good to see thru the tough times. small businesses with 3 people to feed can do well if they sell 10 pieces of equipment all year for 50K each. net of parts, rent, labor, they can make it. its the mid-sized company that is neither big nor small enough to survive on 10 sales that has 20-50 guys on staff and needs a few million in revenue to make the numbers stack that is getting acquired by PE firms or merging, or just plain struggling.
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 ?
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 ?