HIFI-FORUM » English » Other hifi (Engl.) » HOVLAND CLOSES DOWN | |
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HOVLAND CLOSES DOWN+A -A |
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Autor |
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Amp_Nut
Inventar |
05:09
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#1
erstellt: 03. Sep 2009, ||
Another great Hi Fi company has had to shut down... Hovland, who's HP 100 Pre-amplifier held its own for more than 5 years, has shut shop... in less than a decade since it opened.
Full Story In Stereophile: ![]() If you are aware of other reports on this story, please post links here... |
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Manek
Inventar |
05:56
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#2
erstellt: 03. Sep 2009, ||
Very sad. Another one bites the dust. Maybe a lesson here ? Manek |
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SWITCH-IT-ON
Ist häufiger hier |
07:35
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#3
erstellt: 03. Sep 2009, ||
"They really need to go to China or India!! 12 people gulping down 45 lac rupees every month in making what???? A couple of handfull amplifiers!!!!" Its not sad.... this is just insane... No wonder they lead such cushy lives. In india, even if we pay all the 12 an average, handsome salary of 50K, it will still be 6 Lacs and the monthly cost of over-heads not more than 2 lacs. |
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Savyasaachi
Inventar |
09:12
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#4
erstellt: 03. Sep 2009, ||
It is not as easy as using currency conversion Switch-It-On and its not cushy lives really..cost of living is just as high as the salary. And let's not go to the manufacture in China equation. [Beitrag von Savyasaachi am 03. Sep 2009, 09:25 bearbeitet] |
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Amp_Nut
Inventar |
11:45
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#5
erstellt: 03. Sep 2009, ||
I would like to fuel this debate .... ![]() A few audiophiles have been exchanging private E-Mails today, on this topic. I will share ( Names have been withheld ) One Commercial Audiophile wrote :
In response I wrote :
I know my thought will provoke the many commercial members on this forum. ALL opinions welcome ![]() Do post [Beitrag von Amp_Nut am 03. Sep 2009, 11:46 bearbeitet] |
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sivat
Stammgast |
14:56
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#6
erstellt: 03. Sep 2009, ||
I think the comment from manufacturer are words of anger because of failure. I'm myself a 'techie'...and do not have what it takes to make a good deal with a retail customer...like a retailer can do. Retailing is an art. They also have a lot at stake...and they also have running expense (probably thier real-estate expense is a lot more than manufactuer). It is not correct to say one (retailer) is not as important as the other (manufactuer). They both have equal risks and stakes. I did not mean to be polically correct...but these are really my thoughts. |
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Manek
Inventar |
16:04
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#7
erstellt: 03. Sep 2009, ||
Going ti china or india was definately an option. So was going direct. But they chose to go belly up than change. Wonder why ? Manek |
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Amp_Nut
Inventar |
18:02
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#8
erstellt: 03. Sep 2009, ||
Maybe their volumes were too low ? |
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bombaywalla
Stammgast |
19:21
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#9
erstellt: 03. Sep 2009, ||
The other thing here is that, IMHO, Hovland never had any stand-out products. Almost all of them (I'm not familiar w/ each & every product they made hence the hestitation) were me-too products. For every Hovland product & Hovland capacitor you could an equivalent brand/option. Thus, there was no compelling reason to buy Hovland over any other brand. It's easy for me to say this as I have not been in Hovland's shoes but I believe that I'm not totally off-base in writing this either - it is my belief that they could have made all their products w/ much fewer people & even (if push came to shove) outsourced manufacturing partly or fully. Like Manek, I believe that some options still existed for Hovland to operated at a (much) reduced level - don't know if they explored all of them or not. Maybe the options were too painful (they generally are) & they did not want to endure the pain & it was better to close shop & do something else? Need to read that S'phile article if it has any such details. [Beitrag von bombaywalla am 03. Sep 2009, 19:23 bearbeitet] |
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redwine
Ist häufiger hier |
04:13
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#10
erstellt: 04. Sep 2009, ||
As a commercial member let me chime in as well ![]() Having seen the business in the US a bit and here as well the truth is dealers have a far higer margin in the US than in India. Real estate in both places can be considerably high. Salary for a reasonably knowleddgable salesman will run into the $60K or more. Thats per person. If one has a average to slightly big size store you are looking at at least 2 to 3 salesman. There is cost of inventory as well. The big difference - customers in the west are "largely" willing to pay for service whereas the mindset here is quite different...yes, there are exceptions. At ARN, the retail side of the business is partially funded by the corporate business that we have, otherwise I can tell you that its not sustainable. The market is simply not that big for high end and reducing costs by 30% is still not going to generate a huge market no matter what people like to think. I dont see this manufacturers' failure as to do with the 50% margins but more along the lines of what Bombaywalla posted. Going direct is a completely different ballgame and you need to be marketing savvy and run a tight ship internally -while its easy to comment without knowing about their internal structure, 12 people seems too big for this type of thing. The few successful companies that I am aware of are more family based and have small setup costs. cheers |
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Amp_Nut
Inventar |
04:43
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#11
erstellt: 04. Sep 2009, ||
I disagree. The HP-100 Stereo Preamplifier & The STRATOS Solid State Mono Power Amplifier were pretty iconic, in styling, performance & price point ![]() |
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Amp_Nut
Inventar |
05:04
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#12
erstellt: 04. Sep 2009, ||
Redwine said:
I dont see this being ANY lower for a manufacturer, who pays for all this* and still is made to operate at HALF the margin / Ransom (?) of the retailer. * The cost of Real estate for the manufacturer is atleast as high, since the factory demands a larger work space than a typical HiFi outlet.
I am with you here. Most Indian dealers pay for all or most of the absurdly high customs duty, from their Retail margins.. ![]()
Sorry, I dont agree. Take a look / track at this site : ![]() Every WEEK they move more than US $ 100 K worth of Ultra High End products at Hugely discounted prices! [Beitrag von Amp_Nut am 04. Sep 2009, 06:17 bearbeitet] |
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redwine
Ist häufiger hier |
06:25
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#13
erstellt: 04. Sep 2009, ||
For small manufacturers the cost of real estate need not be anywhere as high - they are usually run from home basements or rented houses and need to be in inexpensive areas of the city/town. In contrast a showroom needs to typically be in the business area of the city where rents tend to be higher. This is how I see it in general - not necessarily the truth in all cases. On the salaries part - that does not make sense either - if I have 12 people in a company and am paying everyone $60K a year, there is something wrong with that model. I can have my chief tech/engineer/designer being paid higher - the people who biuld/put it all together and test dont need to be paid that kind of salary. I am not saying that I know better than the guys who run Hovland but this to me is common sense. When I talked about market not being that big - I am referring to the Indian market. The US market is far far larger. |
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