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Post by vneal on Oct 5, 2017 8:09:48 GMT -5
Classe Audio closes its doors
Focal founder passes -RIP
Tom Petty dies of cardiac arrest
B&W drops the popular CM Series and introduces the 700 Series
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Post by Casey Leedom on Oct 5, 2017 12:10:37 GMT -5
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klinemj
Emo VIPs 
Official Emofest Scribe
Posts: 15,083
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Post by klinemj on Oct 5, 2017 19:20:13 GMT -5
I hate to see any company go, but it is AMAZING that the reason I read was that they said it was losing money. HOW can someone lose $ by selling products at the cost they were selling?
Mark
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hemster
Global Moderator 
Particle Manufacturer
...still listening... still watching
Posts: 51,950
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Post by hemster on Oct 5, 2017 20:01:32 GMT -5
I hate to see any company go, but it is AMAZING that the reason I read was that they said it was losing money. HOW can someone lose $ by selling products at the cost they were selling? Mark Just imagine what their cost structure was...  |
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Post by Loop 7 on Oct 5, 2017 21:03:23 GMT -5
For how long has Classé been a B&W subsidiary?
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Post by Casey Leedom on Oct 5, 2017 22:07:49 GMT -5
I hate to see any company go, but it is AMAZING that the reason I read was that they said it was losing money. HOW can someone lose $ by selling products at the cost they were selling? Pretty easily actually. Charge $1M for a banana and see how many customers you get. You might only need one sale in order to be profitable, but getting that sale would be problematic. Charge $0.01 for a banana and you'd need to sell tons of them in order to recoup your costs. (And would never do so if $0.01 was below your cost of production.) In this case, my guess was that their MSRP was high enough that it led to very low sales — no matter how much Cachet the products lent the owners — and that resulted in a negative bottom line ... Casey |
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klinemj
Emo VIPs
Official Emofest Scribe
Posts: 15,083
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Post by klinemj on Oct 6, 2017 4:50:19 GMT -5
I hate to see any company go, but it is AMAZING that the reason I read was that they said it was losing money. HOW can someone lose $ by selling products at the cost they were selling? Pretty easily actually. Charge $1M for a banana and see how many customers you get. You might only need one sale in order to be profitable, but getting that sale would be problematic. Charge $0.01 for a banana and you'd need to sell tons of them in order to recoup your costs. (And would never do so if $0.01 was below your cost of production.) In this case, my guess was that their MSRP was high enough that it led to very low sales — no matter how much Cachet the products lent the owners — and that resulted in a negative bottom line ... Casey That should have been easily fixable...cut the price of the banana. Mark |
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Post by vneal on Oct 6, 2017 6:00:48 GMT -5
Read. Technology has caught up with the high end. Manufacturers like Emotiva should thrive as long as they continue to offer world class performance at beer budget prices
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