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Why Luxury Goods & Audio are strange bedfellow's

EJ3

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An article that I ran into today (from the subjectivist TONE Audio Magazine):

Why High-End Audio Gear and Luxury Goods Are Strange Bedfellows​

December 16, 2021
Why High-End Audio Gear and Luxury Goods Are Strange Bedfellows

To the segment of the high-end audio industry trying to reposition components as luxury goods, I have a message: you’re barking up the wrong tree. To the new entrants trying to create “curated luxury goods experiences,” I submit that you’re wasting your time. No, I’m not trying to be a jerk. I’m actually trying to help.
As someone who’s spent an incredibly disproportionate amount of my income on audio gear since I turned 14 and who has been writing about said equipment for more than two decades, I have gotten to know many audio enthusiasts around the globe. My love of automobiles has also introduced me to another segment of affluent consumers. In addition, my first wife’s parents were incredibly wealthy and put me in touch with people in their network. While I may not be a total expert, I have relevant data points to share from four decades of experience. And, being the human equivalent of a fox terrier, I always ask questions. Here’s what I’ve learned.
Many of our industry’s best companies possess a level of passion for visual and electronic design that matches the intensity of any of the world’s finest automobile manufacturers. They also have the same density of thought. But a difference occurs downstream. Almost no one thinks you’re awesome because you bought a $100k DAC. (Guilty as charged.) In our influencer-driven, ADD world, hi-fi doesn’t have the same cache of a new Porsche GT3 or a Patek Phillipe watch. Sorry, but it’s true.
Don’t believe me? Tell 100 non-audio people you just bought a pair of Sonus faber speakers. (Again, guilty.) I’ll bet a healthy sum that nobody will even know what you’re talking about, other than you got a pair of speakers. Tell the same 100 people you just bought a new Rolex and they will all be impressed or possibly start a conversation with you about watches or jewelry. Tell 100 people you just bought a new Harley, Ducati, or Porsche 911, and you’ll probably have at least a dozen new friends that want to hang with you.
Why? One reason is because hi-fi isn’t transportable. You can’t take it to lunch and show it off or attend a cars-and-coffee event, casually trotting over to the pack after getting out of your new toy. Like it or not, part of the appeal of owning luxury goods is getting to brag about them and being included in a community. Hi-fi doesn’t work that way. For example, telling 100 Porsche owners you just bought a new GT3 might start a minor argument about whether you bought the right one with a manual gearbox or Porsche’s excellent PDK automatic. No matter which option you chose, you’re still a god in that universe. Tell 100 audiophiles you just bought a $50k turntable, or even better, upgraded your system with $50k of premium wire, and 97 of them will tell you why you’re an idiot and why their $4,000 system is far better than your mega system. The issues run deeper.
Because they are often experience-driven and time-challenged, high-income earners don’t spend major cash on high-end audio systems. On rare occasions, I’ve met a few people with means that love to hang out with friends, relax, and listen to music. Some are members of the Greater Toronto Area Audiophile Club. I know there are more, and I’ve seen a few groups on Facebook that I’d love to meet when travel eases again. But assuming that someone who owns a nice car or a collection of nice cars (or watches, cameras, wine, etc.) will automatically want to buy a mega audio system, even if it is branded a “luxury good,” is just wrong.
Maybe it’s because music is a deeply personal thing. It might also relate to high-end audio’s exclusionary nature. In order to derive the most pleasure from a system, you must sit in the sweet spot. Alone. In silence. That’s not something everyone wants to do. Most people would rather go to a concert. Or go on vacation. Granted, the recent COVID lockdowns and limits on mobility have contributed to a couple of terrific years in the industry. Still, I’m curious how many will upgrade their systems with equal enthusiasm when it’s relatively safe to travel again.
Where does that leave us?
The future of audio isn’t bleak. There are more and better choices than ever before. The point of entry for serious sound is far less expensive than any other time in history, and the proliferation of online retailers and used-gear vendors has made it easier to acquire last year’s toys. I’ve always said well-loved, pre-owned gear is a great way to start an audiophile journey.
A good friend who has been an audio retailer for as long as I’ve been buying gear once said: “My average customer is like you, a person that makes a decent living, that spends way too much of it on his hi-fi system. Where do I get a mailing list for that?”
While that doesn’t make for exciting social media, I suspect the world of high-end audio will still thrive the way it always has: by way of enthusiasts and enthusiast publications. Keep passing the word around. -Jeff Dorgay

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Unless I missed it, the author seems to neglect the “ pride of ownership” factor they can attract people to high end audio that has an element of luxury. This is not in the showoff since but simply how it satisfies someone’s personal aesthetic goals.

It seems to me for a long time there was a perception that audiophiles are strictly about the sound - they are basement dwelling man caved dwelling denizens who don’t care how anything looks, but only how it performs.l

But I’ve been pleasantly surprised over the years in the many “ show your system” threads on different forms, how nice looking many of the systems are, and how many audiophiles seem to care about the craftsmanship finish and looks of their equipment as well.
 
Unless I missed it, the author seems to neglect the “ pride of ownership” factor they can attract people to high end audio that has an element of luxury. This is not in the showoff since but simply how it satisfies someone’s personal aesthetic goals.

It seems to me for a long time there was a perception that audiophiles are strictly about the sound - they are basement dwelling man caved dwelling denizens who don’t care how anything looks, but only how it performs.l

But I’ve been pleasantly surprised over the years in the many “ show your system” threads on different forms, how nice looking many of the systems are, and how many audiophiles seem to care about the craftsmanship finish and looks of their equipment as well.
I felt something was missing in the article and you put your finger on it.
But I don't think that pride of ownership needs to be like in luxury goods usually overt, overly stated style.
I think that a certain level of pride in craftsmanship (including the look but not make it look wonderful but it have questionable substance).
There is a synergy that should be there, not style for styles sake.
 
Unless I missed it, the author seems to neglect the “ pride of ownership” factor they can attract people to high end audio that has an element of luxury. This is not in the showoff since but simply how it satisfies someone’s personal aesthetic goals.

It seems to me for a long time there was a perception that audiophiles are strictly about the sound - they are basement dwelling man caved dwelling denizens who don’t care how anything looks, but only how it performs.l

But I’ve been pleasantly surprised over the years in the many “ show your system” threads on different forms, how nice looking many of the systems are, and how many audiophiles seem to care about the craftsmanship finish and looks of their equipment as well.
There are other, more direct factors at play. For example, almost any businessman should understand RIO. Even accounting for inflation, I do not think I have ever "lost" money buying McIntosh amplifiers (including inflationary effects). Of course, I have never bought new, always used. It has been similarly with my speakers. Planned appropriately, the only real "losing proposition" is with AV processing. Only because it is a constantly moving target.
 
Expensive vehicles work. Expensive speakers are interdependent with the space and often dont actually work very well in the real world particularly when placed for aesthetic concerns over acoustic needs. When you have 20 db bass issues (more typical than rare) , upgrading a DAC wont change much.
In wall speakers came about as a means to get an aesthetic pass by the designer for the speakers, those designers not approving of dogs, TVs or children either.
There is also a lot of utter nonsense in high end - passive speaker arrays for $200K ?? Amps for $80K ? Heroic engineering to address tech issues easily addressed with available and accessible existing solutions.
 
Almost no one thinks you’re awesome because you bought a $100k DAC. (Guilty as charged.)

No indeed.
 
There are other, more direct factors at play. For example, almost any businessman should understand RIO. Even accounting for inflation, I do not think I have ever "lost" money buying McIntosh amplifiers (including inflationary effects). Of course, I have never bought new, always used. It has been similarly with my speakers. Planned appropriately, the only real "losing proposition" is with AV processing. Only because it is a constantly moving target.
I have a degree in business management, have owned 3 successful businesses (in Guam: 2 Therapeutic Massage places & a Karaoke Bar) & currently in the USA mainland, own 3 businesses: a Plumbing Heating & AC business, an oil distribution business & a lawncare business.
Which RIO are you talking about? (I've eliminated numbers 3 & 5).
RIORetirement Income Option (various organizations)
RIORisk, Issues, and Opportunities (various locations)
RIOReverse Implement Option (riding lawnmowers)
RIORemote Infrastructure Operations

Rio (2011 film)​

 
I have a degree in business management, have owned 3 successful businesses (in Guam: 2 Therapeutic Massage places & a Karaoke Bar) & currently in the USA mainland, own 3 businesses: a Plumbing Heating & AC business, an oil distribution business & a lawncare business.
Which RIO are you talking about? (I've eliminated numbers 3 & 5).
RIORetirement Income Option (various organizations)
RIORisk, Issues, and Opportunities (various locations)
RIOReverse Implement Option (riding lawnmowers)
RIORemote Infrastructure Operations

Rio (2011 film)​

Honestly I think he means ROI - Return on Investment.
 
Like it or not, part of the appeal of owning luxury goods is getting to brag about them and being included in a community. Hi-fi doesn’t work that way. For example, telling 100 Porsche owners you just bought a new GT3 might start a minor argument about whether you bought the right one with a manual gearbox or Porsche’s excellent PDK automatic. No matter which option you chose, you’re still a god in that universe. Tell 100 audiophiles you just bought a $50k turntable, or even better, upgraded your system with $50k of premium wire, and 97 of them will tell you why you’re an idiot and why their $4,000 system is far better than your mega system. The issues run deeper.
I don't agree with this analogy. It seems like an apples and oranges comparison of Porsche cars owners with audiophiles who are owners/enthusiast or various audio gear and brands.

I know someone who bought a new Porsche and know many car enthusiasts (analogous to audiophiles) who said it was idiotic because you could get slightly better performance for less with a Corvette, or similar performance with a Camaro, Mustang, BMW etc for half the price. You wouldn't have to own or know anyone with a Porsche or be a car enthusiast to know people say stuff like that about cars all the time. Strangely I know someone who bought a $1 million Lamborghini and I didn't hear anyone make the Corvette argument though it still would be mostly true. And it holds true for most anything one buys, eg. some people will say you're stupid buying iPhone vs android, or whatever else higher priced item it might be.
 
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Honestly I think he means ROI - Return on Investment.
I do to but not everyone here is taught English in he same way, nor does everyone form different places now what abbreviations are used with what. Especially when many of them can be used for many different things in this world.
If you are not a business person and English is not your first language, you may be clueless as to what is being said.
When dealing on the world stage (as we are here) it's better to be clear and not use abbreviations.
Especially if the abbreviations do not pertain to audio. (Those are hard enough for me to learn (the ones that are newer than the year 2000) since I lived on Islands in the Indian Ocean & Western Pacific Ocean for 17 years and had not one conversation involving audio during that time.
 
Every market that targets consumers has this basic separation between "it does the job perfectly" vs "I aspire for the top of the line".

Cars: we'd all be driving a Prius or so if it all was about effectively going from point A to B. Watches: quartz/smartwatches vs Mechanical craftsmanship. Baggage: Samsonite vs Tumi... etc etc. There's zero special about the audio jewelry aspect of it.
 
Every market that targets consumers has this basic separation between "it does the job perfectly" vs "I aspire for the top of the line".

Cars: we'd all be driving a Prius or so if it all was about effectively going from point A to B. Watches: quartz/smartwatches vs Mechanical craftsmanship. Baggage: Samsonite vs Tumi... etc etc. There's zero special about the audio jewelry aspect of it.
Some of us would take our boat from our house to the city marina (It's way faster anyway, some of my neighbors went to school that way) & ride the bus from there instead of having anything to do with a Prius.
 
This is not just cars, watches, handbags btw. I’m a hardcore fly fisherman and have a few rods that are nearly $1k each. If you want a custom handcrafted bamboo rod you could easily spend $3k+. And the bamboo rod likely can’t cast as far as modern rods made from hi-tech graphite. That said, Not a single one of these will help you catch more fish. But they are lovely to look at and a joy to own if you spend a considerable amount of time trying to get a trout to rise to a bunch of feathers tied to a hook. Or you can buy a rod for $100 or less that performs just as good, but lacks any luxury.
 
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Some of us would take our boat from our house to the city marina (It's way faster anyway, some of my neighbors went to school that way) & ride the bus from there instead of having anything to do with a Prius.
Which is why you are making my point. I don't drive a Prius, but if my only consideratiins were rational, I probably would.
 
There are other, more direct factors at play. For example, almost any businessman should understand RIO. Even accounting for inflation, I do not think I have ever "lost" money buying McIntosh amplifiers (including inflationary effects). Of course, I have never bought new, always used. It has been similarly with my speakers. Planned appropriately, the only real "losing proposition" is with AV processing. Only because it is a constantly moving target.
But you are overlooking opportunity cost.
 
Which is why you are making my point. I don't drive a Prius, but if my only consideratiins were rational, I probably would.
I've heard that there are issues with materials disposal with them, I don't know
My newest vehicle is a 2004 Chevy SS extended cab truck. I would love to own a 2 door sporty car but needs happen.
I would also love to be independently wealthy, then, I wouldn't need a truck.
 
I've heard that there are issues with materials disposal with them, I don't know
My newest vehicle is a 2004 Chevy SS extended cab truck. I would love to own a 2 door sporty car but needs happen.
I would also love to be independently wealthy, then, I wouldn't need a truck.

Indeed and that's the point. When we decide to dispose of available money, the more the available sum is the more the choices - and price is based on "perceived value" for the buyer, not on cost of goods and labor alone - ever. Our choices as consumers are never as rational as we think they are.
 
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Unless I missed it, the author seems to neglect the “ pride of ownership” factor they can attract people to high end audio that has an element of luxury. This is not in the showoff since but simply how it satisfies someone’s personal aesthetic goals.

It seems to me for a long time there was a perception that audiophiles are strictly about the sound - they are basement dwelling man caved dwelling denizens who don’t care how anything looks, but only how it performs.l

But I’ve been pleasantly surprised over the years in the many “ show your system” threads on different forms, how nice looking many of the systems are, and how many audiophiles seem to care about the craftsmanship finish and looks of their equipment as well.
I was a 1968 purchaser of an AR turntable. I doubt if there has ever been a turntable that sounded better. It had serious isolation features that no one (but maybe Thorens) ever tried to match.

But it didn’t inspire pride of ownership. It looked cheap, felt cheap, and I was always afraid of breaking in normal use.
 
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ahhh! therein lies the rub

there is something to be said for high priced gear when you don't know anything.... when you learn something there is less to be said about it.
there is something to be said for collecting nice things.... but then you die
there is something to be said about return on investment when you buy used ... when you buy new return on investment is much harder

happy listening
 
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