I guess I'm the worst type of customer for audio retailers. I recently switched from buying $50-$100 gaming headphones to $5 wired earbuds with a built in microphone. They are still working perfectly after months, and I got a spare for another $5. The reason I decided to try that is because the wires in my headphones always get partially broken after a few months and so I end up with only one channel. And the cheap B…
“Secrets” about the consumer audio business you may find interesting
191–200 of 338 posts
Re: “Secrets” about the consumer audio business you may find interesting
#192Alice brings her broken car to bob, a mechanic. He has a quick look at the engine, then hits a specific spot with a hammer. The car was fixed. Then Bob asks for 100 bucks and Alice replies that it is quite expensive for one single hammer strike. Bob then says, the hammer strike is 1 buck, knowing where to strike is 99 bucks.
The hammer strike and knowing where to strike should both be accounted as cost of goods sold. 30% cogs would mean a price tag of $330.
Re: “Secrets” about the consumer audio business you may find interesting
#193> The cost of building a consumer audio product is generally no more than 30% of retail. 30% COGS (cost of goods sold) is virtually a maximum for items sold at mainstream retailers. There’s nothing wrong with this. These are standard ratios, not some dirty secret. The cost of goods sold is only a fraction of the costs that go into getting products all the way into the customers’ hands and supporting them (customer su…
> There’s nothing wrong with this. These are standard ratios, not some dirty secret. Standard, absolutely, but I think many are surprised by how much of that is profit for the company that sells the product to the consumers. I worked for a company that had 40-45% margins on most consumer electronics. Less than 40% and the buyers didn't really want to deal with it.
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If you have ever whore'd yourself out as a 1099 "consultant" <=== you're typically paid ~30% of bill rate... the company claimed all this "I have to pay insurance" bullshit - but if you are paid $50 an hour, the contract is likely $150 an hour... and the company's fat margins are within....
Re: “Secrets” about the consumer audio business you may find interesting
#194Earlier quoted context omitted.
I've found that the local hardware store usually has the same or similar stuff as Lowe's or Home Depot, except with a higher price tag.
Worse selection, less organized, higher prices, and limited online presence? You might be in a local hardware store. You might snag a deal on some dusty new-old-stock part, but for just about anything else, I much prefer the box stores or Amazon or supplyhouse.com (I can vouch heavily for these guys, who used to be called pexsupply.com)
Good luck getting most HD employees to do much beyond looking up a location on their phone slower than you can do yourself.
I'm generally willing to pay for the experience of being surrounded by a tenured team who know what they're doing rather than a rotating cast operating at inattentive high schooler levels, but I do still go to HD a lot.
And there was one store I stopped going to because the old guy knew too much and could tell I was doing things out of my depth and - while being somewhat helpful - made me anxious. At HD if you buy a weird combination of stuff or just don't have the air of a pro, nobody's paying attention or knows the difference.
Re: “Secrets” about the consumer audio business you may find interesting
#195Years ago I visited a friend in emmm..., "Europe". He was not home and the neighbour let us in. He asked us to entertain ourselves until he gets back. It took little time to notice the pair of speakers: 50cm cubes, almost. I managed to turn them on and connect them to the TV. There I heard the most lifelike sound I ever heard from any speakers. I wondered: these should be some crazy European brand... no brand names a…
Re: “Secrets” about the consumer audio business you may find interesting
#196Earlier quoted context omitted.
How is profit any less 'productive' than any other expense?
Removing any other expense will be detrimental to the business, that is, make it work less well. Nothing will happen to the business if the owners don't get any dividends.
This was the theory of communism.
Empirically, we can see that things will happen to the business if the owners don't get any dividends.
Re: “Secrets” about the consumer audio business you may find interesting
#197I used to work as a tech in a recording studio (along with a theatre and TV studio) We have a set of nearfield speakers, and that was about it.
However audio reviews are basically:
"Its got punchy bass" and "sounds a bit woolly" or "has brilliant clarity in the upper regions" are about as descriptive as review get.
Not only that but "high end" audio is replete with proper charlatanism. Without trying the devices, its impossible to assess how good they are.
personally, I have a second hand denon HDMI decoder thing, with airplay. I have some cheap surround speakers. The thing that separates it from "high end" amplifiers is that it has a microphone to add some basic DSP filtering during a calibration stage. It gives a decent flat reproduction of what's coming into the amp (ie its not mid or treble heavy), and cost about £250 all in (the amp was second hand)
Re: “Secrets” about the consumer audio business you may find interesting
#198Earlier quoted context omitted.
How is profit any less 'productive' than any other expense?
Removing any other expense will be detrimental to the business, that is, make it work less well. Nothing will happen to the business if the owners don't get any dividends.
Re: “Secrets” about the consumer audio business you may find interesting
#199This thing is unmitigated trash. It's riddled with design defects and bugs that render it unfit for purpose, some of which are acknowledged by NAD but with no solution. For example: You can't watch 1080p content through it because it reports incorrect EDID info to the source player, saying that the max resolution of the display device is 720p.
Another: Dirac audio processing is well-regarded by many to fix room acoustics, so that was a major factor in the purchase. Welp, the NADs will simply "lose" or stop using your laboriously-sampled Dirac EQ curve at random. Another defect admitted by NAD, but "we don't know why it happens."
An authorized repair guy said NAD simply contracts out their designs, and the gear is often built by a hodgepodge of suppliers out of low-grade components. This was after driving two sets of speakers from one set of terminals apparently caused on over-current condition... which didn't throw a circuit breaker or blow a fuse, but rather destroyed the entire amplifier and rendered the receiver permanently inoperable unless the main board was replaced. Brilliant design.
I have replaced it with a Pioneer, which only suffers from one insufferably stupid design flaw that I've discovered so far (also shared by the NAD): You can't play digital sources through secondary zones ("zone 2" speakers). I mean... WTF.
Re: “Secrets” about the consumer audio business you may find interesting
#200Earlier quoted context omitted.
> whatever voodoo the S&M team is up to Those teams rarely justify their cost, especially if you factor in all the sexual harassment lawsuits that they're a breeding ground for.
That might be a different type of S&M team