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In Reply to: RE: Sounds like a Business Plan posted by Dynobot on July 26, 2015 at 04:39:49
It is, you are correct. One that may not work in the long-run. You mentioned that they have been in business 23 years. Japan maybe, but certainly not in the USA that long. The USA is a different market.
You also mention Audio Research and the fact that their products are always available on the secondary market. Not due to breakdown as you assert, but due to the fact that the company has been in business for 45 years, nearly twice as long as Leben and all of it in the USA market. Their products are available on the secondary market because you can get them repaired if necessary. Buyers can move into expensive equipment by buying it on the secondary market and then move up the line, or buy more products, if they like the product line.
It doesn't appear that Leben has this opportunity for potential buyers with their "business plan".
Follow Ups:
For some reason I don't think Leben depends on the American market to stay afloat.
Dynobots Audio
Music is the Bridge between Heaven and Earth - 音楽は天国と地球のかけ橋
"For some reason I don't think Leben depends on the American market to stay afloat."
I'm sure you are correct in that statement. But they did expand to the USA market and I'm fairly certain they did it for potential growth. However, after this thread, I'm now also fairly certain that it is perceived as a luxury brand with customer-desired retro styling and in a different market than most high-end audio equipment. They sell to a buy once and keep it forever customer.
That works until potential customers start asking "what if I don't like it?". Then you get into the long-run scenario I described previously.
There's nothing wrong with a business plan such as theirs. It simply puts a major constriction on the number of potential customers. The luxury market is different from audiophile-land so it may not matter.
In business its all about Economies of Scale.
If its just you and two to three people you might want your product sales to be at a moderate level as to keep the flow of parts at a minimum and investments in stock and other over head at a reasonable number. For example, loosening up restrictions or using other measures to increase sales = increasing stock, labor, etc and slowing production or hiring more people and increasing space.
A prudent business person forgoes greed and settles on a sustainable business plan which can be maintained for the long run without massive debt, inventory, employees etc.
I suspect Leben, like STAX and many other Japanese companies are comfortable with their business plan as is, and not in a rush to become the next LG.
Just my .02
:-)
Dynobots Audio
Music is the Bridge between Heaven and Earth - 音楽は天国と地球のかけ橋
With a small operation you may be compromising quality if you try to stretch your production. And they may be at a spot they like. As others mentioned, you don't see a lot of used leben on the market. I know spectral can be a bit finicky, but I believe part of it is their desire to limit production volumes to maintain quality. It pays off.
fight the good fight
Yes it does pay off.
Plus the last thing a company would want is someone trying to buy up old/damaged gear then ordering parts, fixing them and flooding the market with refurbished gear at a discounted price.
Dynobots Audio
Music is the Bridge between Heaven and Earth - 音楽は天国と地球のかけ橋
We're in total agreement (as long as the company wants to remain very small).
Agreed
:-)
Dynobots Audio
Music is the Bridge between Heaven and Earth - 音楽は天国と地球のかけ橋
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