Catering to the rich not the audiophile

[taters]

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[taters]

online.wsj

Go to search type in Audio arts.

 

[Bruce B]

Money's No Object for His Stereo Types


A belle époque chamber replete with marble fireplace and sweeping park views might seem an unlikely place to buy stereo equipment, but not for Gideon Schwartz's wealthy clients.

Mr. Schwartz, a former commercial litigator, quit law in 2010 to open his Audio Arts showroom, an appointment-only store off Madison Square Park where customers must be buzzed in to browse the pricey equipment.

The security is in place for good reason—the showroom is like a Best Buy BBY +1.52%that's owned by Batman's affluent alter-ego, Bruce Wayne. A completed sound system can cost as much as a studio apartment.

"For most of my clients, it's not about money," Mr. Schwartz said of his equipment's nonnegotiable price points. "Money is no object. It's about creating a spa of music."

Indeed, a Goldman Sachs GS -0.55%banker recently purchased a stereo system valued at around $220,000. It features top brands from around the globe: $60,000 Zellaton speakers; $90,000 Burmester amplifiers and pre-amplifiers; $13,000 for a Holborne Swiss Analog Designs turntable, tonearm and cartridge; $32,000 for a French Metronome compact disc transport and USB digital-to-analog converter; $15,000 for Van den Hul speaker wires and interconnects; and a $9,000 Nagra phono stage.

Is the price for his equipment—largely hand-crafted European wares—really worth it? As Mr. Schwartz recently told a skeptical customer: "The more you spend, the closer you get to musical truth."

Mr. Schwartz, 44 years old, lives on the Upper East Side and runs a one-man operation, including taking care of home installations himself. He sees his shop as a dutiful extension of his passion and longtime hobby.

"Not to sound too lofty," he said, "but every art should have someone who raises the level of the art. With stereos, that's me."

His own musical proclivities currently lean toward Serge Gainsbourg, Bat For Lashes, Joseph Dassin, Efterklang and Royksopp.

Mr. Schwartz said a bare-bones system from his showroom goes for around $20,000, with an average price of $100,000 and a ceiling of $500,000.

The Goldman banker, who declined to be identified, first encountered Mr. Schwartz's wares at an audio expo at the Waldorf-Astoria in April. It took eight months of fine-tuning on the package, with the final product installed in his home by Mr. Schwartz in mid-December.

"Gideon doesn't sell components," said the banker. "He sells sound."

Still, thanks to the peculiarities of city living, high price tags don't necessarily translate into flawless sound, some experts say.

"There's a problem in New York," said Raj Patel, a founding partner at Arup consultants who specializes in acoustics. "People think they can buy their way into what they want. So they think they can put a nice stereo with their nice apartments with hardwood floors and glass walls—with all that does to frequency and reverberation—and that, as long as they spend enough, it'll work. It won't."

Some customers do require convincing. During a recent visit to Audio Arts, 58-year-old trial lawyer Bob Banner took his decorator, Zoya Bograd, to check out the system he and Mr. Schwartz spent a week putting together.

The real judge, though, would be Mr. Banner's wife, Colleen, who was giving the system a final thumbs up or down.

"I feel like I'm going apartment shopping with Bob again," said Ms. Banner upon entering the showroom. "He said, 'This is the place,' and it had not one closet."

Mr. Schwartz reverted to his lawyerly arguments to win her over. The metalwork of the speakers, he noted, was hand-done by a former partner of famed Swiss watchmaker Patek Philippe. Ms. Banner nodded.

Then, as Ms. Banner took a seat next to her decorator, Mr. Schwartz inserted a James Taylor CD that her husband had taken along. When Mr. Taylor's voice began singing "Something In The Way She Moves," it sounded as though he were in the room.

Ms. Banner began the listening with her arms crossed. By the second line of the song, about leaving this troubled world behind, Ms. Banner's arms had already melted so that her hands laid interlaced across her waist as if in sleepy prayer.

By the end of the song, she was nodding, eyes closed, with her shoe dangling from her toes. And afterwards, she began oohing and aahing over the red aluminum remote control that paired with her system. "That'll go with the rug," she told her designer.

As Mr. Scwhartz set up a final listen of an aria on their new system, Ms. Banner remarked, "Right now I really miss music. I mean, iPods are not the same. I have the nice headphones; it's not the same. I like when you're roaming around the room and it's in the air."

When the aria filled the listening room, Mr. Banner said, "I think it's even making my cold better."

Nearly three hours into their listening session, the Banners shook hands with Mr. Schwartz on a deal.

 

[rockitman]

Funny how some people with real doe can fall for this clown of an audio consultant/seller.

 

[Andre Marc]

Money's No Object for His Stereo Types


A belle époque chamber replete with marble fireplace and sweeping park views might seem an unlikely place to buy stereo equipment, but not for Gideon Schwartz's wealthy clients.

Mr. Schwartz, a former commercial litigator, quit law in 2010 to open his Audio Arts showroom, an appointment-only store off Madison Square Park where customers must be buzzed in to browse the pricey equipment.

The security is in place for good reason—the showroom is like a Best Buy BBY +1.52%that's owned by Batman's affluent alter-ego, Bruce Wayne. A completed sound system can cost as much as a studio apartment.

"For most of my clients, it's not about money," Mr. Schwartz said of his equipment's nonnegotiable price points. "Money is no object. It's about creating a spa of music."

Indeed, a Goldman Sachs GS -0.55%banker recently purchased a stereo system valued at around $220,000. It features top brands from around the globe: $60,000 Zellaton speakers; $90,000 Burmester amplifiers and pre-amplifiers; $13,000 for a Holborne Swiss Analog Designs turntable, tonearm and cartridge; $32,000 for a French Metronome compact disc transport and USB digital-to-analog converter; $15,000 for Van den Hul speaker wires and interconnects; and a $9,000 Nagra phono stage.

Is the price for his equipment—largely hand-crafted European wares—really worth it? As Mr. Schwartz recently told a skeptical customer: "The more you spend, the closer you get to musical truth."

Mr. Schwartz, 44 years old, lives on the Upper East Side and runs a one-man operation, including taking care of home installations himself. He sees his shop as a dutiful extension of his passion and longtime hobby.

"Not to sound too lofty," he said, "but every art should have someone who raises the level of the art. With stereos, that's me."

His own musical proclivities currently lean toward Serge Gainsbourg, Bat For Lashes, Joseph Dassin, Efterklang and Royksopp.

Mr. Schwartz said a bare-bones system from his showroom goes for around $20,000, with an average price of $100,000 and a ceiling of $500,000.

The Goldman banker, who declined to be identified, first encountered Mr. Schwartz's wares at an audio expo at the Waldorf-Astoria in April. It took eight months of fine-tuning on the package, with the final product installed in his home by Mr. Schwartz in mid-December.

"Gideon doesn't sell components," said the banker. "He sells sound."

Still, thanks to the peculiarities of city living, high price tags don't necessarily translate into flawless sound, some experts say.

"There's a problem in New York," said Raj Patel, a founding partner at Arup consultants who specializes in acoustics. "People think they can buy their way into what they want. So they think they can put a nice stereo with their nice apartments with hardwood floors and glass walls—with all that does to frequency and reverberation—and that, as long as they spend enough, it'll work. It won't."

Some customers do require convincing. During a recent visit to Audio Arts, 58-year-old trial lawyer Bob Banner took his decorator, Zoya Bograd, to check out the system he and Mr. Schwartz spent a week putting together.

The real judge, though, would be Mr. Banner's wife, Colleen, who was giving the system a final thumbs up or down.

"I feel like I'm going apartment shopping with Bob again," said Ms. Banner upon entering the showroom. "He said, 'This is the place,' and it had not one closet."

Mr. Schwartz reverted to his lawyerly arguments to win her over. The metalwork of the speakers, he noted, was hand-done by a former partner of famed Swiss watchmaker Patek Philippe. Ms. Banner nodded.

Then, as Ms. Banner took a seat next to her decorator, Mr. Schwartz inserted a James Taylor CD that her husband had taken along. When Mr. Taylor's voice began singing "Something In The Way She Moves," it sounded as though he were in the room.

Ms. Banner began the listening with her arms crossed. By the second line of the song, about leaving this troubled world behind, Ms. Banner's arms had already melted so that her hands laid interlaced across her waist as if in sleepy prayer.

By the end of the song, she was nodding, eyes closed, with her shoe dangling from her toes. And afterwards, she began oohing and aahing over the red aluminum remote control that paired with her system. "That'll go with the rug," she told her designer.

As Mr. Scwhartz set up a final listen of an aria on their new system, Ms. Banner remarked, "Right now I really miss music. I mean, iPods are not the same. I have the nice headphones; it's not the same. I like when you're roaming around the room and it's in the air."

When the aria filled the listening room, Mr. Banner said, "I think it's even making my cold better."

Nearly three hours into their listening session, the Banners shook hands with Mr. Schwartz on a deal.

So this is what the scumbags at Goldman Sachs do with their bonuses.

So much for the over taxed rich.

 

[rockitman]

So this is what the scumbags at Goldman Sachs do with their bonuses.

So much for the over taxed rich.

So successful people who work for reputable companies are scum bags ? You are one angry and frustrated dude my friend. Lighten up...

 

[Andre Marc]

So successful people who work for reputable companies are scum bags ? You are one angry and frustrated dude my friend. Lighten up...

Goldman Sachs reputable? LOL....you made my night!!!!!!!!!!

 

[garylkoh]

Funny how some people with real doe can fall for this clown of an audio consultant/seller.

And why do you think that he's a clown? I think that he's the most savvy dealer I've seen - instead of pandering to critical audiophiles, he sells to the crowd who can afford the gear he sells and appreciates what he brings to them. And I know that he cares about the music and the presentation.... even though he won't take my speakers.

 

[rockitman]

Goldman Sachs reputable? LOL....you made my night!!!!!!!!!!

Educate yourself on GS. Their power and dominance in the world economy can not be denied. Like it or not... Money talks, bullsheet walks...

 

[rockitman]

And why do you think that he's a clown? I think that he's the most savvy dealer I've seen - instead of pandering to critical audiophiles, he sells to the crowd who can afford the gear he sells and appreciates what he brings to them. And I know that he cares about the music and the presentation.... even though he won't take my speakers.

I only say that from what I garnered reading the article. Sounds like he has a great niche, captive market...ie: People with money to burn with little knowledge with regard to making sensible equipment purchases. NYC is filled with clientele like that.

 

[Mosin]

I don't see a problem here, nor do I understand any complaints about what one does with his own money. That's just envy. Me? I would love to own a McLaren F1, but I don't have the money. It doesn't make me unhappy because others do, however. I'm happy they exist because their purchases enabled Gordon Murray to push the threshold of sports cars, and realize his dream in the process. No customers equals no product, and that's a bad thing. There are a lot of Gordon Murrays out there in the world with dreams who just need a few customers to make those dreams come true!

 

[Nyal Mellor]

And why do you think that he's a clown? I think that he's the most savvy dealer I've seen - instead of pandering to critical audiophiles, he sells to the crowd who can afford the gear he sells and appreciates what he brings to them. And I know that he cares about the music and the presentation.... even though he won't take my speakers.

I agree. Especially on the home theater side I kind of think the market divides between two sets of customers - the luxury segment who are mostly interested in the end result, not the technical details of how it is accomplished, and the enthusiast, who is totally into all the nitty gritty. Whilst the luxury segment may take a passing interest in the technicalities this seems in my experience to be part of the process used to choose the company they want to hire. In my book it's smart to decide which type of customer you are trying to focus on.

 

[Andre Marc]

Educate yourself on GS. Their power and dominance in the world economy can not be denied. Like it or not... Money talks, bullsheet walks...

Criminals. Period.

They rub your face in the **** and you love it. They got 16 billion from the govt after the collapse and they had the balls to pay out bonuses.

That is YOUR money. You helped pay for their $250,000 stereos, Maseratis, and summers in the Hamptons.

They took a billion in cash from Gaddafi, then when lost a quarter of it, they tried to
bribe him with shares. I could go on.

Educate your self.

 

[rockitman]

I don't see a problem here, nor do I understand any complaints about what one does with his own money. That's just envy. Me? I would love to own a McLaren F1, but I don't have the money. It doesn't make me unhappy because others do, however. I'm happy they exist because their purchases enabled Gordon Murray to push the threshold of sports cars, and realize his dream in the process. No customers equals no product, and that's a bad thing. There are a lot of Gordon Murrays out there in the world with dreams who just need a few customers!

P/u a new MP4 12c. Probably handles better than the F1 due to advances in materials and technology since the early 90's and it only costs $235,000 compared to the f1's original price tag of about a million....

 

[Nyal Mellor]

Well your talking now about the customers, not the dealer...

 

[garylkoh]

I only say that from what I garnered reading the article. Sounds like he has a great niche, captive market...ie: People with money to burn with little knowledge with regard to making sensible equipment purchases. NYC is filled with clientele like that.

But that's what people with money spend their money on... hiring an expert to do the things that they don't have the time to acquire the expertise to do. Their time is better spent earning money.

They say that a fool and his money will be soon parted. The smart spend their money people who can help them spend their money wisely. They pay him to make the sensible equipment choices.

 

[rockitman]

Criminals. Period.

They rub your face in the **** an you love it. They got 16 billion from the govt after the collapse and they had the balls to pay out bonuses.

They took a billion in cash from Gaddafi, then when lost a quarter of it, they tried to
bribe him with shares.

Educate your self.

Never said I like them. They are a legal business entity conducting business legally.

 

[rockitman]

But that's what people with money spend their money on... hiring an expert to do the things that they don't have the time to acquire the expertise to do. Their time is better spent earning money.

They say that a fool and his money will be soon parted. The smart spend their money people who can help them spend their money wisely. They pay him to make the sensible equipment choices.

I don't disagree with you...no different than hiring hi end interior designers to make all your interior decorating decisions for a price.

 

[Andre Marc]

Never said I like them. They are a legal business entity conducting business legally.

Really? It possibly because of the revolving door between Goldman and the Government?

Hank Paulson was a poster boy for Godlman toole who was an incompetent fool in the Bush admin, who did nothing
when warned about the impending collapse. But guess who got their asses saved!!!!!!

They provide zero value to society and if were not for their political connections they would be destroyed.

 

[rockitman]

Really? It possibly because of the revolving door between Goldman and the Government?

Hank Paulson was a poster boy for Godlman toole who was an incompetent fool in the Bush admin, who did nothing
when warned about the impending collapse. But guess who got their asses saved!!!!!!

They provide zero value to society and if were not for their political connections they would be destroyed.

Ever read this article...all the past bubbles created and exploded by GS ?

http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405