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Audio and Video Talk
General Discussion
The future of hifi in SA; is the industry running on empty or ?
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<blockquote data-quote="Timber_MG" data-source="post: 1103944" data-attributes="member: 18"><p>Retailers will sell at what the market can bear. If retailers are not jumping at capex and forex exposure, they'll take the lower sales and higher margins while cutting their baseline costs locally and look to extract maximum profit from the stock they currently hold or look to bring in with low capex.</p><p></p><p>There are many non-essential industries selling above price parity with landed costs from Amazon or the like. It's an arbitrage opportunity technically but much of the market isn't looking at just monetary value. Most of the gear sold is made from far east lowest possible cost components to the point that it will still sell to the consumer. If the scenario achim points to plays out, then the local hifi distributors will effectively loose that bread and butter and perhaps that's why they're focussing on offering to market lower end gear just because it's novel now after a 2 year hiatus.</p></blockquote><p></p>
[QUOTE="Timber_MG, post: 1103944, member: 18"] Retailers will sell at what the market can bear. If retailers are not jumping at capex and forex exposure, they'll take the lower sales and higher margins while cutting their baseline costs locally and look to extract maximum profit from the stock they currently hold or look to bring in with low capex. There are many non-essential industries selling above price parity with landed costs from Amazon or the like. It's an arbitrage opportunity technically but much of the market isn't looking at just monetary value. Most of the gear sold is made from far east lowest possible cost components to the point that it will still sell to the consumer. If the scenario achim points to plays out, then the local hifi distributors will effectively loose that bread and butter and perhaps that's why they're focussing on offering to market lower end gear just because it's novel now after a 2 year hiatus. [/QUOTE]
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Audio and Video Talk
General Discussion
The future of hifi in SA; is the industry running on empty or ?
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