the viability of hi end companies

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.

Jaxwired,
Good posts and insightful perspective. Reality is what it is.
Regards,

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.