Why Audio Prices Keep Going Up - October 2024

Sometimes I receive good questions that respectfully deserve my attention including one from a fellow patron below:

Hi Lou,

The world of Hi-Fi Audio retail has changed so much since the 1970’s with so few independent stores still operating. Yet outstanding audio products continue to be produced but at seemingly much higher prices. While outstanding audio can still be found at affordable prices, flagship products are much further out of reach for the average consumer than they were 30-40 years ago. Meanwhile the world of computers become more affordable every year.

Please offer your opinion on why so much audio equipment is priced higher every year?

Well, I suspect there are a number of factors at play here. Some ordinary, some market. 

In the ordinary, a lot more effort (and cost) is spent on aesthetics.  Look at Classe and its transformation, for example.  They went from black boxes with handles to smooth metal wrap-around chassis.  With speakers, look at how many now have very expensive finishes and I am familiar with those costs having been an attorney for Baldwin Piano.  We also have the pressures of lower volume against fixed costs.  Add to this that many of these specialty units are also hand built and labor costs have soared.  I cannot speak as to R&D, part costs,  failures, and the like.  I am sure they play a part. 

There is also the attraction of making fewer units at a higher price for a limited number of people.  Why try to make a living selling popcorn when you can be better off selling steaks?  So, the lure of the Far East Market, where about 90% of all American High End is sold, can be a serious influence in what and how something is built. 

I certainly saw this when Jeff Rowland began to focus on the Far East.  Others followed suit. Some followed this path in hopes of becoming a recognized brand, regardless of competition to become like Rolex or Tiffany.  If you own one, you have arrived and so pre-sold becomes the goal. 

Now, if you look at the American market, for example, notice how fewer there are of specialty retailers.  Then go look at the magazine racks to see if any of them are about audio. All of this began long before the internet.   Others are simply following what appears to be a successful approach by constant flag-shipping against an assumed competitor.

Without question, part of the pressure also comes from Far East production, particularly China, who produce goods on a scale and cost basis that smaller companies simply cannot compete.  Thus, those companies are driven up the pyramid of customers to an ever decreasing number.  The same phenomenon occurs with retailers as well when distribution of cheaper goods forces them into more expensive products to stay in business.  

And, all of these factors are both related and dependent upon each other.  It is not a single answer or conspiracy.  Whether it is right or not, however, is not my decision but those who run the companies.  Can some of these factors become self-defeating?  In short, yes.  Likewise, it may be the only path available to them for however long it will last and with many of them approaching retirement, that may be just enough. -Lou

A Revelation That Defies My Imagination - September 2024

Many of you have followed my story about my wife and her journey through medicine. Some have offered prayers of different faiths and all have been welcomed. I thought I would share with you my thoughts about her, the Path, and a perspective of life: A Revelation that defies my imagination.

When I married Debbie Hamilton, I had no idea the journey I would either experience or witness.  I thought I was marrying a woman who loved what I did, horses.  While the west was amazing to enjoy and see, it was Daisy who first introduced me to a whole new world called humanity and compassion. It was who you are and shall ever remain, Spirit willing.

Now, years later, over a very uncertain road, and very tough physical experiences, Debbie has managed to reach a most unique position and role with the incredible insight, brilliance and service of the Cleveland Clinic involving nearly every department in their service from doctors, technicians, nurses, and every person imaginable in their employ.  About the only test she has not experienced, one way or the other, is pregnancy.  Through all of her experiences, I have been, either voluntarily or involuntarily, vacuumed along her journey like a piece of lint.

On Thursday, Dr. Soltesz, with great effort, brought Deb through a portal of life, de-transplanting a well loved heart from Erik, and transplanting another from a family yet known.  In that successful moment, Debbie joined a precious few others in human history to receive a second heart transplant.  To put it into mathematical terms, Debbie became one of 6,000 or so to be so gifted by a surgeons hand amongst a human history of 119 billion humans.  In percentages, that is .00000000504201681.  That's roughly the odds of my becoming the President of the United States.

I am finally able to say to you, contrary to your personal beliefs, that you are, indeed, most special and unique.  You carry with you, now, not only the desire to live but by doing so, adding to human knowledge about medicine, a field you dearly love. I know you have looked upon yourself, with all the cuts, stitches, and scars, amongst those you have already suffered, in disdain and a sort of embarrassment. I know you don't think much of your appearance in comparison to others. Yet, loves, you have been chosen and blessed, through your dedication and strength, by the Cleveland Clinic to become yet another step forward in human understanding of our earthly bodies. Wherever you have been in the Cleveland Clinic, you have brought so many into your friendship and they enjoy yours.

Now we journey forward again and hopefully you will be able to enjoy life more fully.  We both look through the looking glass, darkly.  But the truth now stands, that you shall forever be a teacher from this point forward with many still caring and watching along the way. In your own unique way, you are contributing to the field of medicine and human knowledge.

In short, Wow.

-Lou

Reflecting on 39 Years with Naim Audio - August 2024

While driving to Cleveland to see my wife, who now has been in the Cleveland Clinic Cardiac Intensive Care Unit for over 2 months with no end in sight, I had to think about the August blog.  I have been very busy with my wife's situation, insurance companies, and the farm.  Thus, I have not written anything in a couple of months.  But today, I was driving for 11 hours and could think about something I needed to write. 

There is never an easy way to say goodbye to someone you have known and served for so many years.  For us, Naim Audio represented our oldest line.  39 years is a long, long time.  A lot of time, money and knowledge went into serving Naim Audio.

But, over time, all of us change as do companies.  In the case of Naim Audio, Julian Vereker's death was tragic.  A brilliant person and dedicated music lover was lost.  What happened after that was a bit of wandering which, while we didn't fully agree with it (the addition of RCA inputs and outputs on Naim gear) we certainly understood why. 

As things move through time, Naim Audio merged with Focal in 2011 and things began to change a bit under the ownership of Naxicap Partners, and investment group.  Another investment group, Vervent Audio Group acquired the majority stake from Naxicap in 2019.  These investment groups look for returns and are not likely to have any particular love for what they own as long as it produces.  I suspect all of us have seen this happen to companies, hospitals, you name it.  What is usually lost is the original founding spirit much like Walmart has nothing in common with Sam Walton.  It becomes "something else."

It is that "something else" that I don't recognize.  After going 9 months without any access to the portal to order product (this and another line) and ending up refunding about 75,000 in sales this year, it became obvious that we were no longer wanted and we tried to resolve this many, many times.  But who Naim Audio is also changed and in ways that, if I were looking for a product line today, I would avoid.  

Sadly, after substantial difficulties with their service department, sometimes taking up to 4 months to get customer units back, we are also ending all support of Naim Audio products.  We have already taken enough grief from customers about their units and I fully understand that.  So, rather than getting caught between a rock and a hard spot with no cooperation, we simply are going to bring it to an end immediately.  Ironically, as our oldest line it also has become the first that I will no longer service. I didn't choose this nor do I want to lose your gear.  It's that simple. For older product, we recommend a fine Naim Audio servicer in Chicago.  For current things, well, you will need to contact them in Canada.  We are done. 

So, if you want, journey over to our YouTube channel where I talk about our history with Naim from the past to the present.  In the end, it is what it is.

Lou