Ethical has many sides.
Decent wages to people it employs (costs money)
Genuine parts (costs money)
Environmental friendly (yes,also costs money)
After sales service,ease of service,good overall record (costs money)
Decent performance (doesn't necessarily costs,except we put durability too,then it costs money)
If after the above asking prices are decent I consider them ethical.
Decent is a rather difficult to measure. It's even more difficult in audio industry because it's niche and low in volume.
Ultimately, a company must make enough profits to survive. If they can't, they go bust. Despite the price of the equipment, manufacturers are not making that much money from it.
Say, there is an amplifier that cost $10,000, 40-60% goes to dealer. It's low volume item, if the margin isn't there, they aren't even interested to sell it. This is rather typical of electrical/electronics market too. Stuffs like your washing machine, fridge etc are all low volume items.
Assuming $5000 to dealer, out of that remaining $5000, you still need to
3-5%
I'm talking about audio companies that hyperbolize their product's ability to make a system sound better for a price that exceeds what gold costs per ounce--or whatever comparison you'd like to use.
I've always considered DECWARE a DIY who does business fare.
One the other end of the spectrum I'd put PS Audio or AudioQuest -- who seem to have no shame.
What are some ethical companies out there we should be supporting?
How do you define what is ethical or unethical?
1. As consumer, cheaper is better
2. As investor, higher ROI is better
3. As employee, higher salary is better
4. As CEO, higher profit is better
5. As dealer, higher margin/more sales is better.
6. Employee working for dealer, higher salary/commission is better.
Now look at this:
1. Cheaper price, good for customer, bad for dealer/manufacturer since profit margins affected.
2. Lower margins could mean lower ROI, bad for investor.
3. Lower profits means lesser salary and bonus for employee. Worse may lose job if business really poor.
4. Lower profits means CEO needs to answer to investors, board of directors. May also mean cost cutting measures needed. Eg. Salary cut, retrenchment etc.. bad for employees. Worst of all, company go bust and all jobless...
5. Dealer has to pay rental for shop space, salary for workers. So margin and sales matters.
6. Workers all need salary to feed family. Same as no.3
Give you a few scenarios:
1. I am customer. This xxx company sucks, unethical. Overpriced!! Its daylight robbery!! Should go bust!!
2. I am employee. This xxx company gives me good salary, good benefits and really care for employees. Great company!!
3. I am ceo. This xxx company is having way too little profit. Investors are not getting the returns. Operational cost is too high. I need to cut people and benefits etc to reduce cost.
4. I am the investor for xxx company. I invested millions into it but I am not getting the returns I am supposed to get.. time to fire the CEO!!
5. I am dealer. This xxx company is good. They are giving me good margins for their products. So I will continue to sell their products.
6. I am working for my boss in abc hifi shop. The boss sucks. He is giving me way too little salary and my working hours too long. He told us we are not earning enough. We are giving discounts and providing free delivery and installation is eating up our profits. Customer like it? Sure! But it's costing us.
My purpose is to show that we are in a inter-related world where what others do will affect us indirectly and vice versa. Depending on whose shoes you are in, you will see things differently. Every industry has its own list of "unethical" companies, but employees in these companies are still getting paid and able to feed their families. I am sure there will be some who treat employees well too.
Btw, I am not in audio industry (in case you are wondering).
