You are completely right.
B&O has always been more expensive than other brands, but I do agree that they are going to a bit too far these days. You always had to have a 'certain' level of income to be able to afford B&O stuff in the past, but right now, you are not far from having to be a member of what Rolls-Royce calls "UHNW-people" (ultra-high new worth), their core target for their exclusive cars, to be a B&O customer.
When the Beovision Avant came out in the mid-90s, at the equivalent of 5,000 €, even with a built-in VCR, I thought we were reaching the top. Now, for this amount, you can just buy a BV8 with a stand and an external DVD-player. You can forget about the BV7, even in its 32" form, let alone the BV9. Basically, for the price of one Beovision 9, you could get four Beovision Avant models... Yes, the BV9 is far more advanced, has a bigger screen, etc, but for God's sake, we are talking about a TV after all!
Now I do realize that an OK Asian manufactured LCD TV, at eg. 2,000 €, is much more expensive than its past CRT equivalents of 10 years ago too. But in relative terms, the price gap has grown significantly between B&O and other brands. B&O's products are still amazing (my parents have a BV7-40" Mk.III, indeed an amazing product in terms of picture, sound and build quality), but I guess the key for B&O is to justify its price premium vs. other brands.
And compared to 10-20 years ago, that is much tougher, for at least 2 reasons:
- LCD and plasma technology move much faster, making it more difficult for a potential B&O customer to accept to pay such a high price for a technology that will be more or less outdated 2 years down the road;
- With flat screens, it's harder to give a product the famous 'B&O look and feel', differentiation being less easy, at least to the casual observer.
So what's the solution? It all depends on B&O's strategy: maybe it is on purpose that they are losing their larger customer base, because they want to go for these 'UHNW-people' only (higher income per sale). In that case, B&O's main competitor wouldn't be Loewe or Accuphase, but rather a piece of modern art or a yacht... But if B&O's strategy is to keep a relatively large customer base like in the past, they have to cut their prices, and therefore, to keep the same margins, their manufacturing costs. I really don't think lower quality materials is an option.
Take a look at the car industry, Bentley being a good example in my view. They have their traditional products, aimed at the select (lucky) few, and a more mainstream product line (mainstream being all relative of course), based on technology from the Volkswagen group. It enables them to sell a car called Continental GT that remains quite expensive, but less so than their other coupés further up their range. The Continental GT is a brilliant car, powerful, luxurious, ie. it has everything one would expect from a Bentley. It's also simpler and cheaper to manufacture, lots of part being shipped from Germany to England, where only the final assembly takes place. The more expensive Arnage is hand-made, has more customization possibilities, finer details, etc, hence its higher price.
The bottom line is that I would have no problem if a B&O-product was made in a country where labor costs are cheaper ("made by Bang & Olufsen" is more important to me than "made in Denmark"), if it means a better price/quality ratio. Right now, even as a hardcore B&O fan (but not a UHNW person), I am not sure I will replace my beloved BV3 by a BV7-40" when the time comes. 14,000 € for a TV-set, even a great one, sounds a bit over the top to me. Except if I win the lottery maybe.
Klaus
BV 3-32" - BS 9000 Mk. II - 2 x BL 8000 - 2 x BL 6000 - BL 2