the viability of hi end companies

Well, alot of the more established companies are hurting themselves because they stubbornly refuse to embrace the internet and accept that their business model must change. The companies continue to protect the brick and mortar dealers even though most of the dealers do not service the 2 channel audio community. The manufacturers should be selling direct via the internet and their prices should be greatly reduced to reflect the lack of dealer markup.

The biggest argument I hear against this is "how will you hear our products without dealers". This is laughable since the majority of audiophiles cannot hear the products now! The so called dealers rarely have demos setup. The majority at this point are home theater dealers and only order product for an existing job. Many don't even have store fronts anymore.

I suggested to several of the speaker manufacturers that they post high quality videos (done with high end mics) on youtube demo'ing their products and was scoffed at. Why? Guitars are sold this way, check it out. Sure, youtube might lose something in translation, but it would still be an excellent source for getting to know the products. Yet none of them do it. All the music we listen to is recorded and played back on our system, why can't the speakers and other components be marketed this way?

But no, most of the companies will have to be dragged kicking and screaming into this new business model.

I never figure out how they survive. I was just at a big audio banquet with about 400 people. This was for an audio club but most of the people there were manufacterers and distributors. When I asked a retailer at the show why doesn't he ever host the club. He said "These people never buy anything" So if the people from an audio club never buys anything, who is supporting all these people making product?

I also think about this often. Look at an Orion Blue Book or an old Audio Magazine Equiment Directory and see how many companies are still in business. Stereo companies have always come and gone. You can blame it on the economy, however, these companies are faced with an even bigger problem. We, stereo enthusiasts, are a dying breed.

Direct marketing on the net may be the wave of the future. But for now most hi-end manufacturer's sell through there dealer network only.
The hi-end salon that I deal at always seems busy and it's common to see 5 digit plus components going out the door.

Taters, he's right, they don't buy anything. They are all buying from audiogon or under the table with dealers.

Tmsorosk, that's the attitude that is killing the industry. I don't know where you live, but if you think brick and mortar high end dealers are doing good business your position contradicts all the facts.

The vast majority of dealers today are either 99% focused on home theater and have little to no demo space, only ordering product when they have a job OR they are are small dealers running out of their house as a side business and are cutting under the table deals to all their customers. It's ridiculous for the manufacturers to continue to ignore reality.

I've seen numerous cases of people obviously selling dealer inventory as "like new" on audiogon to skirt the dealer agreements which strong arm the dealers into fixed pricing.