By Juan C. Ayllon I read an article the other day where the author advised new audio enthusiasts on purchasing gear. His recommendation was to stick with well-established companies with advertising budgets -- blue chip companies, as he put it -- as this made for better resale value when upgrading to more expensive gear; obscure brand equipment produced in garages are less likely to hold value, he maintained. As you may know, the life cycle of a business is comprised of four phases: startup, growth, maturity and renewal/rebirth or decline. The implication of the aforementioned article was that one should buy from a company in the latter two stages and, in a used audio market rife with inventory, that’s sound financial advice; an unrecognized brand is more likely to remain unsold or to sell at a steep discount than a recognized brand listed on the secondary market.That just makes sense. At the same time, most audio makers began operations in their garage. Take PS Audio and Straight Wire, for example. And it’s not just limited to audio -- does the name, Apple (computers and cell phones), ring a bell? Everyone starts somewhere and, whereas you take a bigger gamble investing in something fresh out of the gate, at some point, some gain traction in the market, rising through growth and into the maturity stages. Word of mouth, great reviews and a growing track record and reputation go a long way to establishing -- and sustaining -- value. Take, for example, Lampizator. Based out of Poland, Electrical Engineer Lukasz Fikus built a huge following with his blog on Do It Yourself modding of old equipment with tubes and went on to establish his own successful DAC (that’s Digital to Analog Converters, for the uninitiated) company. Last I heard, he still doesn’t have an advertising budget. Or how about Indiana-based Odyssey Audio with its excellent amplifiers? A factory-direct offshoot of German Acoustics (an importer of German audio equipment) since 1998, business is booming for proprietor Klaus Bungee. He consistently gets rave reviews at shows and typically has a five week backlog on orders, yet, he spends very little on advertising.
There are other companies that don’t advertise, yet make wonderful products with growing followings. For example, I am currently reviewing a brand new pair of diamond midrange towers, the TD-10, made by Taiwan-based Usher Audio. While there have been rumors afloat that Usher was closed, although there were some changes in leadership, the company is still very much alive. In fact, they recently picked up a new dealer, Toska Audio, in Chicago’s North Shore suburb, Highland Park, IL. Gudebrod Audio is a young business that uses high quality parts in its 3T12V preamplifier that's generating some buzz with its outstanding performance for the price (you can read my review here). I own and use Lampizator, Odyssey and Usher products in my reference system and couldn’t be happier. So, while it’s wise to go with more commercially established firms, there’s nothing wrong with doing some research and trying out growing or more mature brands that choose to put their advertising budget in audio shows rather than magazine ads. I look at it like investing in the stock market: you research, buy and trade the greater portion of funds in mature companies, along with solid performers in the growth and renewal stages, however, it’s okay to allocate maybe 10 percent in high risk ventures like futures, commodities -- and startup companies. Likewise, there’s nothing wrong with having a little fun and spending a little “crazy money” (i.e., discretionary money you can afford to lose with no ill effects) from a startup or growing firm. For example, if I had the funds and inclination, I might buy an inexpensive preamp or amplifier, but I wouldn’t spend a load of cash on speakers or other gear from an exciting company with very few sales, in light of the inherent risks. However, there's nothing with taking a calculated risk and having a little fun along the way as we try out new things. Be brave, audition prospective purchases in your own space and decide for yourself! Invite some other audiophiles to listen and give their feedback, as well. After all, we don't experience lovely music and sound systems with advertising clippings or spreadsheets, but with our ears and our senses. Think of it as trying out a new, zesty salsa you've heard about with your blue chips.
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Juan C. AyllonA writer, artist, educator and owner of Prairie Audio Man Cave, he lives with his wife, Isabel (AKA Belle), and their Goldendoodle, Liam, enjoys listening to high fidelity music and all things hi-fi at their home in the greater Chicagoland area.. Archives
March 2024
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