[dspgolf]

Wow is all I can say!  Things must be rough out there if Bowers and Wilkins is going into magnolia stores?  I guess that the loss of some of their dealer network has forced them to rethink their business model. What's going to be the next shoe to drop Bryston ltd. in Wal-Mart stores?  I think the world is truly changing and I'm not so sure for the better?  But hell what do I know?

Dave 

[dspgolf]

Here is the link to the article if anyone is interested?


http://www.twice.com/article/454938-B_W_Signs_Magnolia_Rules_Out_Online_Sales.php

Dave

[Phil A]

Thiel will be selling certain models on Amazon.  I saw the B&W story before the post.  Not surprising.  Their main dealer in the DC area was Myer-Emco which closed shop in the last year after many years in business.  I think they have 7 or 8 stores.  A custom installer picked up the line but that's not going to make up with a B&M storefront dealer.  Wal-Mart has picked up some brand names you would not expect (not Thiel though) when you think about what Wal-Mart has carried in the past.  HH Gregg, a chain retailer has opened more stores as has 6th Ave Electronics.  Circuit City left a void too.

[Phil A]

Here is the Thiel story -  http://www.prnewswire.com/news-releases/thiel-loudspeakers-expands-distribution-to-include-amazoncom-97948394.html

[Phil A]

Here's a recent story on Wal-Mart - http://www.twice.com/article/453418-Walmart_Expanding_Online_Component_Audio_Selection.php

Would not surprise me to see Target or a department store chain pick up some more electronics/

[Phil A]

Granted it is a very upscale store, but when I was in London in 2005 Harrod's Dept. Store had some fairly expensive high end electronics.  They had more Linn (which is of course in Scotland) than any Linn dealer I've seen.  They had some Arcam and other pieces too.

B&O has of course opened their own stores.  Sony tried it with Qualia too.  Who knows at some point you may see manufacturers pair together is more exclusive areas where dealers are sparse and income levels can support high end audio and open their own shops

[Napalm]

Isn't Walmart the obvious place where one would sell Made in China products?

Nap. 

[dspgolf]

I know company's like Bang & Olufsen are struggling with their own stores.  People are having a hard time spending thousands on B&O  HD Flat Panel TV's when you can spend less and get a very nice SONY, Samsung, Panasonic at a lower price that looks almost as good!  Yes they make beautiful audio products that look and sound great but people are very much watching how and were they spend!

[Phil A]

I know company's like Bang & Olufsen are struggling with their own stores.  People are having a hard time spending thousands on B&O  HD Flat Panel TV's when you can spend less and get a very nice SONY, Samsung, Panasonic at a lower price that looks almost as good!  Yes they make beautiful audio products that look and sound great but people are very much watching how and were they spend!

True - they have a couple of stores in my area in upscale locations.  The economy is squeezing everyone.  We've seen the residential real estate meltdown and we are not out of the woods there yet and still have a way to go in the commercial real estate meltdown.  The way audio dealers are disappearing it would not surprise we to see Bryston/Thiel or another group of manufacturers either open their own store or one in an upscale department store in an area where dealers are sparse.  It also would not surprise me to see Magnolia get a little higher end in some areas.

[Napalm]

Dunno guys but I still think that the price of most speakers is obscene for what they are. 3-4 drivers @ $100 each + a MDF box (a material that most home owners wouldn't accept for their kitchen cabinets...). And how much R&D goes into that crossover anyway.

Maybe some actions like this one would bring things into place.

Maybe not. Some people want >$65000 speakers no matter how they sound or look.

Nap.

[Phil A]

Dunno guys but I still think that the price of most speakers is obscene for what they are. 3-4 drivers @ $100 each + a MDF box (a material that most home owners wouldn't accept for their kitchen cabinets...). And how much R&D goes into that crossover anyway.

Maybe some actions like this one would bring things into place.

Maybe not. Some people want >$65000 speakers no matter how they sound or look.

Nap.

R&D, including minimizing the sound of the box and the finish of the box costs money.  With most speakers the most expensive part is the box itself.  Take a pair of Magnepans as an example of a speaker with the cost of the box.

[1ZIP]

I guess Magnolia taking on B&W isn't all that surprising they sell other high end gear. McIntosh for example.

[Phil A]

I guess Magnolia taking on B&W isn't all that surprising they sell other high end gear. McIntosh for example.

Didn't realize that.  Have not noticed it in my local store (don't go in that often - most of the time in Best Buy for music or movies or something for the PC) but did see it on the website along with Arcam.

[Napalm]

R&D, including minimizing the sound of the box and the finish of the box costs money.  With most speakers the most expensive part is the box itself.  Take a pair of Magnepans as an example of a speaker with the cost of the box.

Magnepans are a specialty product, I'm talking about the standard speakers with cone drivers. There's nothing glorious there. How comes some of those boxes are way more expensive than your full kitchen cabinetry????

It's a scam....

Nap.

[bummrush]

Also if you want another scam look at dig amps a couple b and o modules a tweak here or there ,that a company touts as proprietary and exclusive, and look at those prices.

[skunark]

This is disappointing news, but historically this happens when a brand name gets too big.   So that probably means Classe and Rotel could also be heading to Best Buy....

[Bemopti123]

This is disappointing news, but historically this happens when a brand name gets too big.   So that probably means Classe and Rotel could also be heading to Best Buy....

That means, people like myself sponsoring more small scale builders or do DIY all the way as there is no reason or way I should be spending $$$$$$ for junk made in large scale somewhere in the Far East.  Classe made and still makes some really incredible equipment.... Rotel, to compete with those like NAD and the large Japanese conglomerates have already dipped their feet in the race to the bottom of the price scale that MANY manufacturers engage on in order to survive. 

When I look at most of my system, most, if not the entirety of my gear is either vintage or from a small manufacturer. 

I cannot see myself standing in some Walmart or Target and checking out all the once glorious brands that once used to make incredible hiFi components, giving credence to plastic components that have the same cost as a microwave and are designed as consumables with a 2 year lifespan.

[Napalm]

The way audio dealers are disappearing it would not surprise we to see Bryston/Thiel or another group of manufacturers either open their own store or one in an upscale department store in an area where dealers are sparse.

I'm not that concerned about Bryston, they still differentiate themselves enough with the solid quality, customer service and 20 years warranty. Yes they are more expensive than the run-of-the mill $1000 jap amp, but their proposition is like a $60000 Mercedes with 20 years bumper to bumper warranty against a $15000 Hyunday with a standard 60000km drivetrain warranty. Why not drive in style and worry free for the next 20 years.

Nap.

[Pez]

You're all crazy if you think this is surprising. What, you don't think they sell built-to-a-price-point garbage just because they're B&W? News flash: they've been doing it for years. This just means that they've wised up and decided to capitalize on consumers overblown sense "prestige" in regards to their products. I say more power to em'. It's hard times baby you gotta sell that sweet ass any way you can!

[Laundrew]

I believe that you are going to see a lot of these audio companies build more to “a price point” if they are going to move into big box stores and this will naturally involve moving production offshore where they can have a product cheaply built.

If this does continue, it will not make any sense to purchase products from these “so-called” high end audio companies because I believe that quality will be defiantly lacking. I have seen quality in many products steadily decline over the last 4 to 5 years and the only reason this is happening is because of corporate greed - we all know that manufacturing in many regions of the world is less expensive than North America because corporations take advantage of slave labour, purposely deflated currencies and non-existent environmental laws and policies. Has anyone noticed prices going down in North America in products produced overseas?

Also the tax load that many of us must endure is getting excessive, we just had a huge tax increase in Ontario with the HST and on top of this, they added another “environmental tax.” The blunt-skulls in the legislature believe that this tax will create more jobs. Interesting, if I am paying more in taxes, I have to cut back in some other areas…

Be well…