Steve, I didn't quote you and you're attached quotes to save on space! You raise an interesting point but there are more than enough people with plenty of money ready and willing to splash out on B&O equipment, so this alone should be driving B&O to come out with better products.

Chris, it also depends on area of course so dealers in parts of Central London, Greater London including Surrey and Kent, Brighton, and where I am here in Bath are to name but only a few dealerships in the UK which will continue to flourish because of money in those areas. I am fairly new to Bath but there is a lot of money here and many parts of Bath and North East Somerset are afluent. My £12,000-£15,000 purchase on B&O was merely a drop in the ocean compared to many customers that walk into the Bath showroom. They are setting up people's homes with purchases between £50,000-£100,000 more often than you may think and I have been in the shop myself when such customers have been in ordering more.

You work in the IT industry. I know this sector well as I was a software tester up to my late 20s and had worked in IT since leaving school at 16. My brother also worked in IT for a lot longer than I did before he took over the family business in 2004. Salaries in that sector are high, particularly if you are contracting and it seems you are as you have mentioned in previous posts about getting ready to submit your tax forms. A lot of people work in that sector as you know; just as many work in banking, stock broking, people in highly paid retail positions such as Senior Merchs and Buyers and a whole host of other well paid jobs accross all kinds of sectors. They represent a large proportion of the workforce nationally so I really wouldn't start thinking there isn't a lot of money around. Perhaps people are a little more careful with their spending, but it isn't because of a lack of money.

And, Steve, believe me, many people do inherit. Of course a lot of hard work is done by people before them, whatever generation, but a lot are born into money. Philip Green who owns the Arcadia group and BHS; he was born into money. Richard Branson was born into money; David Ross (who setup the Carphone Warehouse, he was born into money. He is the son of Mr Ross who started Ross foods; all of the so called 'dragons' in the Dragons Den program were also born into money, they simply used it to buy/setup what they did. There are millions of these people worldwide.

With regard to property, while many investors are English, most people with the larger portfolios are foreign, who invest in this country because it offers the best profit compared to anywhere else in the world. The English property market is stable, secure, safe and profitable. Many of the Asian communities own property. Anyway, I am dragging this on a bit but I really wanted to make the point that there is a lot of money in people's pockets.

Simon.

If this is B&O's market, then they don't need the stores -- they'd do wonderfully by going "underground" and supplying super high-end A/V to select customers, working through developers, interior designers, a/v customizers and their own bespoke services. (Which, by the way, is what Goldmund is doing.)

B&O would then only need a few flagship stores or demo-centres in specially chosen locations.

As pointed out above, there's a disconnect between the price-point of a number of the products, relative to what else is available in the market, and the large footprint of B&O today. Quite a challenge. They need products that are relevant to those who walk by their stores every day - given the high-street locations of most one can surmise that passersby will be weighted towards the higher-income segment in the total market, they still need to have value for money in order to attract enough new customers. (As we know here, B&O is not a brand you become instantly familiar with!)

BMW makes a 1 series.  People who buy it like to know they're buying a BMW.  It's a decent car for a good price and it lets people who normally would've been stuck with a GM, have something a little better.

BMW makes a 7 series.  People who buy it are buying a status symbol.  It's a pimped out car for a massive price that lets people who buy it say to the other people "suck it" because they have a great car that may or may not be worth it.  They didn't need to spend that much but they did because they can.

BMW has diversified to build up the widest and largest owner base that they can, which makes them money.

B&O has diversified to build up the widest and largest owner base that they can, which makes them money.

You know? 

I didn't think anyone would read it twice ;-)

 

But yeah, you're right.  My point was B&O has a wide range of stuff.  I wasn't thinking of the rebadged stuff like the BS6 (because it's crap).  I was thinking more like the BS1 or the BS4 or the BL4... "entry level" stuff compared with the BS9000 or the BL9 or BL5.  Between the former and the latter there's a mighty wide range.  A lot of people can afford the BL4 but not a lot can afford the BL5.  A lot of people can afford a BMW  series but not a lot can afford a 750iL with all the trimmings.

 

But yeah, the basic math of most of the products is totally asinine. 

i tend to agree here like giving someone a cheap diamond wrapped in the most expensive box 😂

it is possible that becoming a 21st century well recognized brand like Aston Martin worldwide has allowed B&O managers to think that it was possible to add any indecent mark up to their products for there was an economic boom out there. Now things are changing and one cannot ask stupid prices anymore for what can be seen around.

B&O will have to adapt somehow soon...