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
"Who buys $50k products from two or three people operations?"

i suppose there is probably 20 out there somewhere if one can find them.
jaxwired, I don't think my attitude has much influence on the industry. My position is based on observations. As far as where I live, it's western Canada and yes things are booming here and always have been.
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.
Any business venture, especially something on the line of a hi end niche market, begins with vision and passion. You feel you can offer that better "mouse trap". And in so doing you don't listen to the nay sayers of the bad economy or falling markets. No, you don't have you head in the sand, so you may keep you day job. But you dream and then work too make it come true
Nonoise, Elliot hasn't hosted a meeting in over a year. I haven't talked to him lately so I don't know what's going on with him. I have purchased gear from him in the past and he has always been very nice. I'm not very Impressed with Shelleys. They used to really cater to the 2 channel market but not anymore. At one time they carried Plinius, Audio Research, Sonus faber, Spectral and other high end brands. Now there mainstay is Mc Intosh and they are catering to the home theater crowd and custom installs.