One of the most interesting aspects of attending a high-end show is getting the scoop on new products, new companies, brands that are out of business, changes in partnerships, and personnel changes within the industry. There's typically also a storyline or two that emerges from talking with insiders. Basically, gossip.
Thursday was trade day at High End 2010, so I got to talk with a lot of manufacturers. One interesting conversation came up more than once: the value of established brands versus the extremely high cost of products made by no-name newcomers. And frankly, I can see why it's such a common topic -- the price of some equipment borders on insanity. Part of the blame goes to the press, of course, for heavily promoting brands that offer exorbitantly priced products with no industry track record.
The entrance to High End 2010. A gateway to insanity?
This didn't start at High End 2010. I remember walking into a room at this year's CES that featured some fine-looking components from a company whose name I'll withhold. One product they showed was a preamp. I thought it might be an interesting component in the $10-to-$15k range, and that it might compete with the likes of the Audio Research Reference 3 and the VTL Reference TL-7.5 II. I also remember thinking that although the company was new in a way -- they had previously gone out of business -- perhaps they now had solid footing and might therefore be offering a viable alternative. But then I learned that the preamp was going for $75,000!
All I could think at the time was, are they crazy?
Let me get this straight: someone is going to spend 75 large on a preamp from a company that was just out of business, instead of buying the ARC, the VTL, the Simaudio P-8, the Ayre KX-R, or, if you really want to go extreme, the Boulder 2010? These five companies have been in constant business for over a decade, or, in some cases, decades. And their flagship preamps, all except the Boulder 2010, are priced anywhere from a fifth to a fourth of the one offered by this reborn company.
This is not the only example of this phenomenon. Look at some of the audio magazines these days and you'll see other super-high-priced products from unknown companies being unconditionally recommended and endorsed. The folks working for the established companies that make sanely priced electronics are often dumbfounded with what the newcomers are trying to charge for their products. In a way, it makes the whole industry look bad.
Obviously, I believe the prices that some unestablished companies are asking for are insane, and my advice is this: before you assume that these prices are in any way justified, you simply must investigate who's been around for years refining some simply legendary products! Demand a comparison, too, if you can find a dealer selling these crazy-expensive components. Many of these terrific companies I mentioned are showing at High End 2010, further building their brand names and supporting an industry not untouched by the worldwide economic slowdown. A company's history and whether they'll be around in the future should be an important consideration when you're buying any new component. And it's products from these established companies that I'll be concentrating on in my reviews.
But somehow I think we'll be talking about this tomorrow, too. The insanity, unfortunately, will probably never stop -- there will always be somebody trying to bilk the consumer.
. . . Jeff Fritz
jeff@soundstagenetwork.com
