How do all these manufacturers stay in business

[taters]

It seems there are more manufacturers of audio than ever before. Even back in the golden age of audio you didn't see this. With the dwindling amount of brick and mortar stores and this rough economy I always wonder how they stay in business.

 

[MylesBAstor]

It seems there are more manufacturers of audio than ever before. Even back in the golden age of audio you didn't see this. With the dwindling amount of brick and mortar stores and this rough economy I always wonder how they stay in business.

Low overhead eg. they build the product on their kitchen table or in their garage. And they build to order.

 

[cjfrbw]

How do you become a millionaire in hi end audio?

Start out a multi millionaire.

 

[garylkoh]

How do you become a millionaire in hi end audio?

Start out a multi millionaire.

Sigh! So true.....

 

[Thf99]

As music lovers, we should support the manufacturers as much as we can as long as they don't profit excessively. Without them, this hobby won't exist. If we can afford to buy new, we should. It pains me to see manufacturers going out of business.

 

[amirm]

It is mind numbing really. When I walk around high-end suites at CES, it just goes on and on and on. Fair bit of audiophiles seemingly get into building these things. The saying I go by is the one that was in woodworking magazine. Someone had written in asking if it is a good idea to open a cabinet shop to make a living from it. The editor's answer? "The best way to ruin a good hobby is to turn it into a business!"

 

[JackD201]

How do you become a millionaire in hi end audio?

Start out a multi millionaire.

Applies to becoming a dealer too!

 

[DaveyF]

I too have often wondered how so many of these small manufacturer's can make any kind of a living. I have actually asked a few about their business plan, only to be asked what is a business plan...LOL. It never ceases to amaze me that people don't really understand the aspects of starting and running a business in this economy, never lone one that caters to a very small audience in the best of times. OTOH, I guess one has to be thankful that there are seemingly a never ending supply of folks who are willing to jump into the deep end because of their love of the hobby. To all these adventurous souls, I take my hat off to you and wish you the best.

 

[opus111]

"The best way to ruin a good hobby is to turn it into a business!"

Yet I can't help thinking about the other side of that coin. The only way (that I can see) to get the resources (not thinking here primarily financial resources either) to take your hobby to the nth degree is to turn it into a business. Would Steve Jobs have been able to realize his ideas for personal computers without Apple behind him?

 

[MarinJim]

If you are Burmester, you team up with Porche and Bugatti.

 

[Mosin]

Low overhead eg. they build the product on their kitchen table or in their garage. And they build to order.

Exactly. Even so, costs continue to increase. There's the "economy of scale" issue, too. What might cost the large manufacturer a dollar to make could cost the small one a hundred dollars. R&D is difficult, too. Taxes are yet another issue.

It isn't easy to manufacture anything at any scale these days. I believe that it isn't worth the effort for many of us, if money is the primary concern. Most of the small guys in audio that I know are driven by a passion that won't let them quit.

 

[andromedaaudio]

http://www.interactivebrokers.com/ibg/main.php


No i am joking , .... getting a brandname across is the keypoint , i do it out of passion , even if i would earn nothing from it i would still design loudspeakers.
Its very fun to do, and i am not easily satisfied , i always think i can do it better .
There are a lot of things that can go wrong in a speaker , if you master the technique you re in control

 

[MylesBAstor]

Exactly. Even so, costs continue to increase. There's the "economy of scale" issue, too. What might cost the large manufacturer a dollar to make could cost the small one a hundred dollars. R&D is difficult, too. Taxes are yet another issue.

It isn't easy to manufacture anything at any scale these days. I believe that it isn't worth the effort for many of us, if money is the primary concern. Most of the small guys in audio that I know are driven by a passion that won't let them quit.

Esp. if you need precision machining like with turntables and arms!

 

[Mosin]

Esp. if you need precision machining like with turntables and arms!

This is true. All it takes is one multi-thousand dollar mistake made by selecting the wrong machine shop to realize it! A lot of shops cannot fathom the idea of tolerances tighter than .0001", not to mention nice finishes, but with enough searching enthusiasts for what you are trying to accomplish can be found. That's one of the rewarding parts of the whole thing.