Who buys hi-end audio?

This.

 

Or, just about when the credit card bill arrives. Then you know it when you see it Ooft...!

 

Loved this thread.

So who buys high-end audio?

For this, I'll define high end audio as 25k+ systems. (Certainly high-end can be had for less, but I'm picking a number, so bare with me)

Two types of people: Audiophiles and people with more money then they know what to do with.

Who buys ultra-high-end audio? (250K+ systems)

The intersection of the above two groups: Audiophiles with more money then they know what to do with.

At this level, these guys can afford to spend the dough and enjoy the chase. I also think they like having something a little more esoteric. And there are plenty of people willing to dream up items to sell to them. 250K speakers are most likely a 1 off production for demo, and then built to order. At a certain point it all sounds great, and you are selling a look, a feel, an emotion.

 

No, paid cash with trade in. Great deal, it was.

 

Yes, pay cash or if you use your credit card, have the cash in your account to pay off the balance immediately. Don't fall into the trap of making monthly payments!

 

That's largely because the vast majority of people do not know that there is high end audio. They only know what they can see and they only name brand they know is Bose because it is advertised in non audio magazines like GQ or car magazines as well as the 1/2 hour infomercials telling then that the Wave Radio is the best audio system in the world. They need to be exposed to higher end audio systems and that MAY get the interested in what is out there.

 

I'm grateful for the people who do buy high-end audio gear. That segment of the market helps push some R&D that may eventually trickle down to lower cost gear. For example, the people who bought Ayre gear made it possible for some of that Ayre technology and sound to make it into my little $300 PonoPlayer. Thank you. That Ayre sound is awesome.

 

I think the point that people spend years putting their system together is an important one. I have been into audio since I was 16 in the 80s and in 2002 I really found a dream system (An Audio Note System) and you fast forward 15 years later and I still haven't managed a full AN system. Although getting close. But I think I said it before - I don't need a car here in Hong Kong and I don't smoke and I don't drink (recreational only). People spend thousands on these things over the years. People will spend $35,000 on a vehicle and no one says anything but if you spend $20,000 on loudspeakers you're crazy - speakers that can last you 30 years with minimal attention. You make priorities. You get one kick at the can so you may as well enjoy yourself.

 

Exactly. Like B&Ws new 700 series. Took some of the tech developed for their 800 diamond series.

 

Exactly, the point is on what else are you spending your money? We don't have kids, the house is paid for, we don't change cars every 2-3 years and we don't have debts or loans. So why should I deprive myself from spending my money on things that brings me pleasure? It's not like I have to rob someone else account in order to finance my hobbies and the expenditure was spread over decades.

Anyway, the price of components is not the driving factor. I have no idea if what I have can be classified as High, Mid, Low or Crap end. All I know is that it enables me to spend many pleasurable hours, which come to think about it is way better that what I can say about most of the people I meet on a daily basis.

 

You need to meet more interesting people.

 

That sounds like a Chinese curse.

 

The monkey's paw...

 

Perhaps, but (a) I'm not getting paid to meet interesting people and (b) to quote Mark Twain: "The more I learn about people the more I like my dog".

 

Stereophile has a circulation of around 73,000 readers. Years ago, they provided some demographic info about their readers.

Who Are You?

They're just a slice of the overall pie, but you can fill in the blanks as to who is buying high end audio.

 

It all relative. Mine isn't high-end by many standards, but seems somewhat stratospheric for friends who say hey wow great system - good music-loving folk - then get in their new on-purchase car and drive home to a whopping TV, garage full of mountain bikes, and Bose Bluetooth unit.

 

People with money to blow, I think is the short answer.

 

I just looked at your profile. That's high end. To me, high end is more about a culture than the amount you paid for gear. If you own products from these cottage manufacturers and make an effort to support and take part in the industry, it's high end as far as I'm concerned. Doesn't have to cost over XX,XXXX dollars. The idea of high end as only being about high priced aspirational products is poison for the industry. It doesn't foster the sort of inclusivity the industry needs to stay relevant and survive. There will always be very expensive products in niche markets, but being defined by them would be a mistake.

 

And get the liability cover from your credit card provider therein. Wouldn't do it any differently for large purchases.

 

"LOOK AT ME!!!!!!!!!"

 

OK nicely put.

Do like the culture and cottage-manufacturers point. I've realised if a smaller or less obvious company has been around for a while and still makes and supports well-regarded products, it's a good place to look.

And indeed - the distribution curve for hifi gear tails out a looooooong way on the price axis, but proper quality can be found well within the lumpy bit.

 

Outside of me I personally don't know anyone that does.

 

I think,

engineering wise, a turntable or an audio amp is of limited complexity. Even some advanced amateurs or hobbyists can construct and build, say, tube amps, or the like.

If you want to start a company, and have limited amount of money to invest, you probably go into a niche market, where you can sell small numbers of items for relatively high prices. If it's a niche market, probably with limited marketing costs, you can manage to be known to all potential customers.

On the other hand, if you wanted to make mainboards for computers, or even CPU chips, the technological challenge is much higher. For manufacturing of a CPU, you need a cleanroom factory. (Or, you have other factories build your chips.) For computer mainboards, you need to be competent in h.f. electronics.
The market in this area is driven by technological advancements at constantly dropping sales prices. How could you stay afloat as a new company with limited financial backing, in such a market where you need to turn out improved product at a cheaper (or at least, the same) price every 6 months or so? How could you compete against, say, Intel or AMD, for example?

The resources needed to make an audio amp are very limited: A solder iron, and a metal workshop (for case and chassis). You buy the components and can even make hand-wired amps. (So, you don't need to order printed circuit boards.)
If you know your artisanry, if you make well designed fine-looking gear, you can ask for a hi-end price and may get it.

My point is: If you have a small buisness (in terms of number of units sold), it's better to enter the market at the hi-end.
I guess, it's almost impossible to compete against the really cheap kitchen radios or nostalgia portable turntables as a new domestic manufacturer.
If you want to start a new company, select a product with limited technological complexity.
But a product, that you can sell at a premium price because of exclusiveness or the charm of hand-made or such.

Maybe, that's why there are many small companies in that hi-end market segment.

Best regards

 

Agreed but I think you might be underestimating the innovation or circuit design of the startup. Most great audio companies start with an engineer that had a new idea.