Hi-fi’s traditional distribution model has evolved due to the Internet, but the price of high-end equipment will always remain high, says Barry Willis – it’s more fine art than mass-market tech
Last month I touched upon the economics of audio – in particular, the unlikely possibility of getting back a substantial fraction of the money put into high-performance equipment. Long ago, the rule of thumb was that suggested list prices for high-end products were generally five times factory cost. That was when multi-tiered distribution was still the rule – manufacturers delivered goods to distributors, who in turn offered them to dealers. Distributors provided marketing assistance, employing sales reps who called on dealers, did demonstrations, and could intervene in the case of defective products.
Barry Willis has turned some impressive profits reselling vintage audio gear, but these are the exceptions that prove the rule. In fact, much of the time he’s left counting the cost..
An enduring bit of wisdom cautions against extravagant purchases – the must-have new car, for example, that loses 20% of its value the moment it’s driven off the dealer’s lot. Something similar happens with high-end audio, but worse, because were you to try selling your latest cost-be-damned amplifier or ultra-performance DAC two weeks post-purchase, you’d be dismayed to learn that you might recover only 50% or so of what you paid.
An electric shock from an antique valve amp finally sends the rose-tinted glasses flying from the face of Barry Willis. Vintage gear? You can keep it, because the golden age of audio is happening now...
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