Quote:
Originally Posted by Hartley118
High prices (plus of course purchase tax) gave many of us the incentive to make our own stuff. Great. There's an implication that those high prices made someone rich. But did you ever know a rich audio company? Most went bust, suggesting that prices weren't actually high enough.
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Doesn't follow. Company viability and success are inextricably linked to profit; the bottom line. Good profit can be made by selling relatively few products at a high price, or by selling lots of products at a lower price, and a thousand and one iterations between the two. And of course not withstanding that, the products have to be desirable to a (sufficiently sized) 'mass market'. Cos if they're not, the price equation doesn't even come into it. In other words, no matter what the price, if insufficient units are sold, the bottom line, the profit margin, is unsustainable.
No, I think that many of the 'lost' audio companies went to the wall because they were started and run by engineers, not
marketeers. All too often, the former think they understand and can do the job of the latter. A big and common mistake amongst engineers...