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SHOPPING FOR HI-FI AND HOME THEATER

Consider this scenario:

Joe Consumer has decided to purchase a nice pair of speakers. He reads several magazines to find out which speakers the reviewers like this month. He settles on a pair with a "retail" price of $2599. They sound all right (they are $2600 speakers, after all), and the store that carries them is willing to sell them for $1900 (maybe less if he gets a refrigerator at the same time). Joe then goes on the Internet and finds a place on the East Coast that claims to sell them mail order for $1599. Almost 40% off! Joe infers that most audio equipment should be available for at least 30 or 40% off. He is, however, becoming a little overwhelmed with all of the hype, specs, and conflicting information he's being subjected to.

At the recommendation of a friend, Joe visits a high quality retail store. It's a bit of a drive, but his friend says that they have a great showroom where they'll take the time to help you audition a variety of carefully chosen speakers that represent some of the best values in the industry. They'll even allow you to try out the speakers at home if you like! When Joe arrives, one of the staff demonstrates several pairs of speakers that sound amazing - much better than the $2600 speakers he heard before. And the ones he likes the best are only $1500 per pair! When Joe decides to buy them, the salesman offers him a great deal on some good speaker cables, as well as advice with system setup and help with speaker placement. But there's a catch - when Joe asks for his best price, the salesman tells him - $1500.

What gives?

Most audio and home theater products are commodities; designed and sold on the basis of having the most impressive list of features and specifications for the largest discount. Manufacturers of this commodity equipment are likely to spend far more money marketing their products than they do designing or building them. They tend to sell their equipment through appliance stores, large chains, or Internet sites where there is large sales volume potential with minimal danger of customers actually getting to properly audition the product or compare it to something good.

In general, since most equipment is ultimately sold for about what it is worth, this kind of "commodity" gear must be heavily discounted in order to sell. It's too bad, but there are plenty of people out there who believe that a big discount on a mediocre piece of equipment constitutes a good deal.

The store Joe found has made a choice to represent a different kind of manufacturer. These companies aren't always household names, but many have been in business for a long time. They share a desire to build products that are outstanding in terms of performance and value for the dollar. They spend an inordinate amount of money on the research, design, and materials that go into their products. Their prices reflect the actual value of their products instead of an unrealistically inflated "starting point". They insist that their products are sold by carefully selected retailers who maintain high standards for their staff and demonstration facilities.

Based on everything he's now learned, Joe comes to the simple realization that his purchase decision should be made on the basis of how good the $1500 item sounds, not how much the $1500 item has been discounted.