When audio companies go out of business

[DaveyF]

Today, I finally sold my Highwire speaker cables....I say sold, as it was really 'gave away'.
This is the second time in my audio life that i have taken a bath on gear for one simple reason....
the Company that made the gear went out of business Which resulted in a plummet of the value of the gear the day after the company went bye bye
I used to own Hales speakers, a very good speaker and well respected...that was as long as Paul Hales kept the doors open. As soon as he closed up shop there went the farm! My speakers plummeted in value the next day by at least 50%
So the moral of the story is: IF you want to try and keep at least a modicum of value in your gear for re-sale, then ONLY buy from a Company that is likely to be around into the future....you know the usual suspectsA lesson that I have now learned.
What pieces of gear have you seen devalue due to that small Co. going under?

 

[Bruce B]

Years ago I took a bath on a Wadia 27ix... the very next month some company gave them an influx of money. If I had only waited another month.

 

[NorthStar]

Yeah, but those are financial value losses, and not musical ones.

 

[JackD201]

I don't get it. If the company already went under and the price has already plummeted, why sell if you still like it? I mean, cables? It's not like you'll need any after sales service. Electronics or loudspeakers, I can understand.

 

[Phelonious Ponk]

Electronics or loudspeakers, I can understand

Even then. I've blown, and had to replace one tweeter over the years. I've had electronics serviced for maintenance. Can't say I've ever had anything "fail" on me. Maybe you guys should buy more midfi .

Tim

 

[microstrip]

IMHO, in general, if the gear has good quality and strong roots in the market it will keep the used value price stable after the immediate devaluation due to the closing sales. However if it was poorly designed and needs frequent service value will go down significantly.

Digital is a special case - obsolescence and devaluation is faster, and audiophiles change it more frequently. Any rumor of bankruptcy will cause a strong devaluation.

 

[DaveyF]

I don't get it. If the company already went under and the price has already plummeted, why sell if you still like it? I mean, cables? It's not like you'll need any after sales service. Electronics or loudspeakers, I can understand.

Jack, the price of the cables plummeted immediately after the Co. went under ( several years ago). I liked the cables enough at the time to keep them, there wasn't much on the market that I felt was a lot better. Obviously, as time went by, there were and are several cables that are now far superior. I decided to look into some of these and was surprised at the difference some of them make.

I used this example, as I just sold these cables after about a year of trying...

 

[Bruce B]

For some reason people think just because the company goes out of business the equipment no longer sounds good or is a good value. This applies even to the Stereophile Recommended Components. Just because a piece of equipment gets dropped, audiophiles think the equipment sounds like crap now.

 

[FrantzM]

Hi

so how does one encourage small companies to produce gears .. If Audiophiles thought that way there wouldn't be Audio Research, Krell, Avalon, Magico, Rockport, Wilson or whatever Audiophile brand you want to think of .. Audiophile companies are usually smallish, almost amateurist outfits started by enthusiasts. It takes them a while to become real stable businesses.If we, audiophiles did not buy our gears often based solely on their sonic worth these would not exist at all...
No!! I will buy a gear based on its intrinsic quality and hope it has a following and strive .. The only way to sustain the industry ... If the brand bombs..well so be it .. Part of the game .. if it doesn't more power and enjoyment to me .. For the record, I lament the demise of Hales speakers, along with Avalon, they were among the first non-planar to convince many audiophiles, I, included, that cone speakers could be worth consideration ... Look at where we are now. Cones speakers thoroughly dominate the industry ...

 

[NorthStar]

Exactly Bruce; the true value is in the ears of the beholder, not in his wallet.

 

[Bruce B]

.. For the record, I lament the demise of Hales speakers, along with Avalon, they were among the first non-planar to convince many audiophiles, I, included, that cone speakers could be worth consideration ... Look at where we are now. Cones speakers thoroughly dominate the industry ...

Did Avalon go under?

So what companies are we talking about?

Hales
California Audio Lab
Acoustic Research
BIC
ESS
Apogee

I'm sure there are hundreds of others!

 

[lasercd]

There is an unfortunate benefit to a company going out of business. If you are prudent and do your homework you can get some incredible values in the secondary market.

 

[FrantzM]

I meant that Avalon and Hales came about the same time and they were among the first speakers to convince many audiophiles that cones speakers could be as good as planars or even better... Hales is no more but Avalon is still among us ...

 

[garylkoh]

I have a saying that the value of quality is remembered long after the price is forgotten.

When a company goes under, there are some incredible values. I've spoken to audiophiles who stuck their necks out and bought some of the large Genesis loudspeakers for some stupid money. One guy bought a pair of the 4-tower G200's for $5000 when the company shut down in 2000. I can't even buy the veneer to make a pair of those for $5000 these days. I'm still supporting him 12 years after his purchase - so he got lucky that somebody bought the company.

 

[mep]

Very lucky Gary.

 

[carolkoh]

And he shoe-horned them into his trailer home. You know Gary, we've an invite to his new place. He says he finally has a large enough room where they can breath.

 

[NorthStar]

And he shoe-horned them into his trailer home. You know Gary, we've an invite to his new place. He says he finally has a large enough room where they can breath.

Hey, Hi Carolyn! :b

 

[JackD201]

Even then. I've blown, and had to replace one tweeter over the years. I've had electronics serviced for maintenance. Can't say I've ever had anything "fail" on me. Maybe you guys should buy more midfi .

Tim

This discussion is with regards to resale value. Mid-Fi? Look at ebay and tell me with a straight face that mid fi retains anywhere the resale value of hi-end equipment percentage wise. There you go again Preacher Tim.

My point was simply that with loudspeakers and electronics you may need parts. Parts that were proprietary or custom built. No company with spare parts, bye bye. Same applies to mid-fi. You might not have had anything fail yet but that doesn't mean it won't happen. So keep knockin' on wood there. As far as mass market goods, we know where they end up. In land fills. You'd have to have a house burn up or some mad man with scissors or an axe to wreck cables. Otherwise good ol' contact cleaner is all youmight ever need. That's all I'm sayin'.

 

[DaveyF]

I have a saying that the value of quality is remembered long after the price is forgotten.

When a company goes under, there are some incredible values. I've spoken to audiophiles who stuck their necks out and bought some of the large Genesis loudspeakers for some stupid money. One guy bought a pair of the 4-tower G200's for $5000 when the company shut down in 2000. I can't even buy the veneer to make a pair of those for $5000 these days. I'm still supporting him 12 years after his purchase - so he got lucky that somebody bought the company.

You're absolutely right, Gary. I too have profited by a company going out of business. I bought my EAD DAC for a steal because the Co. went belly-up a few years before. IF the Co. in question somehow rises from the ashes, then that is the best of both worlds for the new owners and the prior owners; BUT if they don't, then the devaluation of the piece in question continues on a steep path, IMO.
I agree that the re-sale value of the piece has nothing to do with the intrinsic quality of the piece in question..witness my EAD DAC as an example. But, I suppose the fear of having to service the gear now that the manufacturer is no longer around is the prevalent issue. Not sure why that would apply to cables, OTOH

 

[audioguy]

Did Avalon go under?

So what companies are we talking about?

Hales
California Audio Lab
Acoustic Research
BIC
ESS
Apogee

I'm sure there are hundreds of others!

Dunlavy Audio Labs