The Economy.. will hi end audio mfgs lower prices?


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The state of California just laid off 20,000 employees. National unemployment is at a 30 year high.

Will there be a shake-out in high end audio? Will we continue to see $10k preamps and $30k amps?

According to the article below, prices of most consumer goods, especially big ticket consumer goods are going down.

....copy and paste it into your browser

http://finance.yahoo.com/tech-ticker/article/176714/American-Retail-Goods-On-Sale-Now----and-Forever?tickers=sks,%5Egspc,%5Edji,wmt,jwn,wfmi,cost
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128x128mitch4t
We've heard a lot about the bailout for the economy.
I don't recall having heard anything about what the government will do to prevent the parasitic behavior that got us into trouble in the first place.
You will see a change in this industry. People cannot afford $8000 cd players right now. Alot more cannot afford $2000 cd players. Look what is happening at Sony, Pioneer and Mcintosh.

How many cd players do you think Esoteric sells in a
normal year? Imagine how many this year. There will be a change in our audiophile landscape in the next two years.
Those in the business real business world know this.

Alot of supply.........little demand.
Direct sales probably the only way for hi-ends company to survive. I know my post will be deleted but this is the fact: I receive 20% discount from certain hi-end retailers and they still make quite a bit profit above "dealer cost". Sorry to offend any dealers in this thread but 40/60 cut to order a piece is quite a it of profit. That does not include "incentive" from certain manufactures Only my bloody lawyer charge me that much !
There is a lot of disinformation out there. The last significant recession in 1981 was marked by 11 percent unemployment and interest rates of 19%. We are currently at 8.5% and interest rates are at .35%. Much of our contraction comes from a false real estate economy that was allowed to foster between 2003 and 2007, the so called "bubble." If you look at the stock market, it has merely reset it prices back to 2002. So the real question is:

0 Will the 92% of gainfully employed people still buy quality goods?

0 Will luxury brands reset their mark-ups to be more in line with the current reality.

I think the answers are both Yes.

Don't get caught up in the fear that the press is spreading. This country had 3 and 1/2 millionaires in 2006 and this country drives 40% of the global GNP.
In evaluating price changes from foreign manufacturers, keep in mind that some of the apparent reductions are simply a reflection of variations in currency exchange rates, especially given the recent strengthening of the USA dollar. They may therefore have no long-term significance.