What High End Manufacturers Could Learn From Bose

interesting thread--reminds me of the case study i worked on Chivas Regal (the worst scotch around). Chivas was a marginal player in the low dollar blended scotch mkt, and meer fodder for jokes amongst single-malt scotch conniseurs..but then chivas did 2 things: new box / packaging, and raised their price. results go against economic theory (sales increased!), but testify as to the effect of a good marketing program.

this has a lot in common with audio. high end audio is the equivalent to the scotch conniseur--who knows what regions were known to produce good scotch, what labels / years to watch for, etc. point being, they're very educated about product, and as such have no problem paying $80 for a liter if they think its amongst the best. of all the people who own stereos, how many are very educated about product? only those on this board.

audio has a couple serious problems, financial aspects aside. in order to compete w/ mass mkt product, they have to educate the public as to how much better it can get. and to do so requires retail outlets for demonstrations (and we all know the difficulties for the highend retailer these days).

couple that with these factors: bose recognizes 3 things in serving the market: 1) product must have aura of high-end (face it, most people think its the best!), 2) product must be at a price point that is still discretionary, and 3) product must be small (i.e. households buy furniture, and when speakers are not in use, they're furniture---best to keep em small guys else the wives don't like it).

so what is one to do? madrigal has a good starting point w/ the multi-dimensional line (levinson in lexus), and would be well served to purchase the gallo speaker technology and begin w/ a new brand...

the rest of high end will always be a cult.

rhyno

High-end audio is invisible - but it need not be so. Take Porsche as an example: how many people can afford one? How many people actually buy one? And how many WANT one?

Porsches are not cheap, they are not compromised (well, maybe their new cheapo ~$30-40K models). Hi-end audio can also remain expensive and uncompromised and be desired by the masses (is this not the definition of of being a target of desire in the materialistic world? :-).

So why are we not there yet? I am not a marketing maven, but it may have something to do with the fact that I never see anyone parading around the city with their brand new, bright red, Revel Salons (i.e. the 'show-off' factor is severely lacking ;-). In this way, high-end audio is like fine wine, fine furniture, (fine art does have somewhat a reputation amongst the masses, though, but only the very, VERY high-end)...

I hope someone from the other side of the fence (manufacturer) reads this thread as there are some intersting views being shared. I personally believe that largely due to technology it is becoming harder to build crap. not that technology alone makes good sound but the simple fact that in exemple 24bit Converters are now cheap, Op Amps are getting better all the time and higher tolerances are easier to achieve on passive components.
I think speakers are going to remain a chalenge because of their mechanical nature but there is little excuse for a manufacturer to build shitty CD players today.

Two words...niche market. The advertising money (even if the relatively small high end companies had it) would for the most part be wasted. The small percentage of the population that is willing and able to spend considerably larger amounts of money for a smaller and smaller increase in sound quality as prices go up (the law of diminishing returns is in effect here) is fairly constant. We are mostly dedicated hobbiests who will know all about the high end world regardless of their small advertising budgets. Bose can play on the ignorance of the masses, and therby increase their market share. They say they have good sound, and the ignorant believe. Also Bose has small and relativley cheap (compared to high end) products which increases the WAF (wife acceptance factor).

Ed, and please, I did not take this or very little personally(to manys dismay) , my point is more that the diamond or ruby or whatever precious stone or metal it might be, will last beyond many liftimes without maintenence and care and will be of some significant values, unlike many many pieces of high end audio gear.
Now I will take exception that it has to be expensive to be high end, I consider some of the lower line Magnepan, Adcom, Pioneer Elite, and actually there are many other high end bargains, though as I wrote earlier, high end is tiered. I am also always amazed by how a compnay can start out building an incredible value(B&K as an example)but suddenly become very expensive.