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Old 16th April 2012, 03:25 PM   #11
gfiandy is offline gfiandy  United Kingdom
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Having worked in the HiFi industry, I can assure you that very few people are making a huge amount of money. Running a business costs, distribution costs and shops cost.

You might be able to make a living selling over the web but unless you can find a incredible viral marketing strategy even that is going to cost for marketing.

Most of the time in developing a product is in negotiating with suppliers, working out how the finish you want can be achieved without costing to much, writing work instructions for assembly, writing a manual, testing the product works over production tolerances, ensuring it passes legislative requirements ( fortunately this is not to bad for a passive speaker ).

As a rough guide each company that work on a product needs a Mark up of 30 to 50% to be able to trade profitably. So say it costs 100 in parts and materials, you need to make 50 to be able to run your business, it now cost 150 you will probablynsell it to a distributor (once you can find one who is prepared to sell it) they will want another 40% it now cost 210. The shop will need another 50% to be able to stay in business, high end hifi doesn't move that fast and the staff cost money. So it now costs 315 suddenly your design dose not look so competitive with the competition.

I dare say this will get me a flame war but, I get annoyed buy the HiFi manufacturers are all ripping us off attitude. Yes there are a few that seem to be able to offer very average product for allot of money but even that cost them as they had to build the brand somehow. Most are only just profitable and currently a lot are not profitable at all. Yes if you put in many hours of work you can just about make something better than what you could buy for that money. If you don't want to put in the hours why do you assume just because the parts cost less than the product, it's a bad deal. Don't get me wrong I am all for DIY otherwise I would be here but DFY has it's place.

You see the same thing with software, it costs nothing to make why is it so expensive. That will be because it takes thousands of man hours to write, promote, distribute etc.

Please don't think I am saying you shouldn't try, you should but expect it to be difficult and don't be surprised if you find you can't make a profit there is much more to a successful business than a product that is good in one respect. Most people buy things with their eyes and their hearts not their ears and their minds. They are brand loyal and change resistant. Also good to your ears may be horrible to theirs.

Best of luck.
Andy

Last edited by gfiandy; 16th April 2012 at 03:28 PM.
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Old 16th April 2012, 03:31 PM   #12
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Originally Posted by gfiandy View Post
Having worked in the HiFi industry...
Very well written Andy.

I agree.
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Old 16th April 2012, 03:44 PM   #13
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Originally Posted by LafeEric View Post
Very well written Andy.

I agree.

...thats what I was trying to say....but in a very dumb way...lol

Agreed
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Old 16th April 2012, 04:03 PM   #14
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...thats what I was trying to say....but in a very dumb way...lol

Agreed
Yeah me too.
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Old 16th April 2012, 04:07 PM   #15
Turbon is offline Turbon  Sweden
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Originally Posted by LafeEric View Post
...I have tremendous respect for someone willing to try, let alone someone able to actually make a living at it!
Yes, yes I rest my case...

I went to school for 3 years to master this and it newer got me a job in this industry. IT was the next choice but it is not really my interesst here in life. But now, IT is getting closer to music and there are opportunities. My self - I'm to old now - I'll just stay put amazed. The thing of today is to press the Redmond giant to give us UAC2 - built in.

Good luck to you all.

Brgds
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Last edited by Turbon; 16th April 2012 at 04:20 PM.
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Old 16th April 2012, 04:13 PM   #16
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So we are here to see that volunteres business ideas will be fulfilled.
Stop posting if that is the case, I thought the idea of this forum was the total other way. Give your thought of supreme audio to others to try out without personal winning? Now that was a mouthfull.

Brgds
Ummmm... What?
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Old 16th April 2012, 04:28 PM   #17
Turbon is offline Turbon  Sweden
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Originally Posted by LafeEric View Post
Ummmm... What?
Hmm, you were fast enough to capture that one...

My mind had a change after reading your inputs made after my last one.

Good luck to all trying to get into the business. Among you there will be astonishing good designs and designs that probably shouldn't have seen their first light.

Strange though, even in a forum as this one you can't be sure of who is trying to screew you. But again, that might be the way to better the designs - not ourselves.

Brgds
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Old 16th April 2012, 04:36 PM   #18
Boscoe is offline Boscoe  United Kingdom
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I plan to start my own Hi-Fi company...
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Old 16th April 2012, 04:47 PM   #19
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DIY speakers are an art unto themselves. Having worked for B&W I have had the luxury of seeing the amount of R&D that goes into their products.

Even though I wholeheartedly agree that most of the 18K price tag of the 802D's is taken up with R&D, dealership and profit. You can guarantee that the product will work "out of the box".

I have yet to see a finished DIY design that can compete with the High End speakers, not only B&W but the multitude of High End manufacturers.

IMO most DIY designs are trying, AND SUCCEEDING, in producing excellent designs for pennies.

Has anyone produced a reliable High End design that can realy compete and be reliably replicated.

I would rather spend 18K on something that I know will please my ears for years to come than spend 2K on some DIY project that will be disappointing.

I would love a pair of B&W Nautilus but at 60K I'd have to save for a few months.

Last edited by KatieandDad; 16th April 2012 at 04:53 PM.
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Old 16th April 2012, 05:00 PM   #20
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Hi Andy,
Well said, Many people are simply unthinking and very naive. I am sure they would not give their own hard work away for free.
DIY does have a tendency to attract those people who always want something for nothing, because they believe they are being ripped off. This attitude probably extends into every element of these peoples lives.

Without the traditional Hi-Fi market investing in Driver manufacturers the DIY market will be up the creek without a paddle, to put it mildly. For sure no major drive unit manufacturers relies on the specialist DIY market to keep them going!

Linkwitz acknowledges the cost of doing business:
DIY and the Cost of Doing Business

Last edited by rob g; 16th April 2012 at 05:12 PM. Reason: 4 Klarifikayshun
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