the viability of hi end companies

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.

Great points Jaxwired,
Your findings parallel mine and, I assume, most of us here.

The only successful model I've seen that sells high end, besides internet sellers, is Acoustic Image, in Studio City (just north of LA). Elliot Midwood sells directly out of his home, where he holds demos and receptions for the LA/OC Audio Society and I consider myself lucking enough to know him.

He used to have a salon on Ventura Blvd when times were good but scaled back to his home when things went bad. It's because of people like him that one can be afforded a real view into high end products.

There are others like him out there but they have to and should be sought out if we want, at least, this model to survive. Even if one can't afford high end products, they can steer you to great quality product and demo it for you as well.

As for good, old fashioned brick and mortar types, there still Shelly's Audio out in Woodland Hills who still sells great gear for those who have sensible wallets but still want great sound. But they compete with internet sellers with a customer base that knows their product and who can undercut them on the price. Here's to hoping they can hold out.

All the best,
Nonoise