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In Reply to: RE: Wingate Audio??? posted by Charles Hansen on July 02, 2011 at 16:04:25
"However, I have never seen a successful manufacturer of high-end audio that sold direct."
Please define what you think is successful.
Follow Ups:
I don't want to get in argument here. I just am stating my observations, based on observing the high end audio industry for over thirty years.
Wingate Audio was a perfect example. They had one or two power amps and one or two preamps. They were well built, had a rave review in TAS when a rave review there could make a company's fortunes, nice looking, nice full-page color ads. Yet in a year they didn't sell a single amp (according to a source that may not be 100% reliable).
So why do you think they failed so miserably?
Or if you don't want to answer that question, why don't you give me some examples of successful companies (your definition, I won't argue with you unless you name one-man shows working from basements or garages). Perhaps there are a few I have overlooked, but the strong pattern I have seen is that they don't last more than a year or two.
When I was starting Avalon up, Conrad-Johnson started distributing a fine line of reasonably priced loudspeakers designed by Dave Fokos called Synthesis. Nice looking, great reviews, good sound, no problems that I know of. After a year or so they parted ways (I have no idea what happened nor why). Dave regrouped and started selling the speakers direct with a 30-day money back guarantee. Within a year he was out of business. I've seen the same pattern over and over and over.
Maybe I'm just looking for a certain pattern and missing a different one. Feel free to enlighten me.
I agree that, in the past, there were few successful direct sales only high end companies. However, there were at least a couple - Legacy Audio was direct sales only for many years.I suspect that the direct model may be more viable on a going forward basis, due to the internet. Brick and mortar stores are dying off, so more and more gear is being sold by on line companies like Audio Advisor and Music Direct. It also helps that consumers can get so much information about pretty much any piece of gear from online forums such as this one. If those companies can sell on an on line only basis, there's no reason manufacturer direct can't.
The system I'm listening to right now was purchased entirely on line, except for some cables. Some of it was used or kits, but the amp, preamp, tonearm, cartridge, headphones, and CD recorder were all bought new online, from several different merchants.
Edits: 07/03/11
All of your arguments *sound* reasonable. But then you present Legacy Audio. There have been many that started off as direct sales only but then switched to dealers -- PS Audio is perhaps the most prominent example but there have been several others in the past decade. On the other hand Zu is the only company that went the other way. It is too soon to tell if they will survive.
I hope you got what you wanted through buying online. Even with a money-back guarantee it is something of a hassle to return it. Same for used. You can usually sell for close to what you paid (less the listing fees) but again the hassle factor raises its head. I don't think brick and mortar shops are going away anytime soon.
Think of it this way -- you could brew a nice cup of coffee at home for not very much money. Yet people line up to pay 20x or 30x as much to purchase it at their favorite local coffee shop. Why? Lots of reasons. Similar reasons exist around any luxury purchase.
And if I want to buy unless NAD or Paradigm it would be ordered online by the shop. And starbucks has closed 200 shops in the US alone doesn't sound like growth to me.
Been around over 12 years. No basement or garage work. Not just one man. To me the future is factory direct or internet marketing. Brick and mortar shops are dropping like flies. Ones left play it safe with name brands and little stock. When you purchase they order it online for you. Not trying to devalue the service a real store can offer but the ones I frequent are moving to HT or big name brands like B&W. Though I did convince my local shop to offer Ayre [your welcome]if I wanted to buy I would have to order it. So where are start ups or small manufacturing to go to sell product? Online is where. Demos will take place at audio shows or in home. Every year more people change to online shopping this is only going to grow. Why limit ones sales to fixed stores that's such dated thinking.
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