2nd Hand Hi-Fi & The Recession ?

[Pete The Cat]

I'm an economist by education. Even a deep recession usually takes many months to filter through to all strands of an economic chain. However as things stand I'm sensing buoyant prices in the 2nd hand hi-fi market. I sold 4 Quad 405s a year ago when the average was £135 and they're now going for nearer £175 ; Naim shifts briskly as ever, old Exposures seem to sell to the first passer-by, LP12s, Garrards, Technics and old Thorens are escalating rather than holding...

Am I wrong ?

Or is the recession yet to reach its farthest extent ? Or is 2nd hand OK at the expense of retail ? And why would hi-fi be different to other goods ? Theories welcome :confused:

Pete

[Rare Bird]

I think the reason they still sell is because people want/prefer the older models.

[Techno Commander]

There is very little new "mid range" hi fi available these days. The old stuff was good and more people are realising this.

[Macca]

There are a lot of people in their fifties and sixties who are still very financially comfortable regardless of the economy. No debts, mortgages paid off, guaranteed pensions, kids grown up and doing well etc. They are retired or work only occasionally and they have disposable income aplenty to buy the things they could not afford to buy in their youth.

That's not the whole demographic but it is what is driving prices up for the kit you mention. I can't see it being teenagers (know nothing) or speculators (too risky) so who else?

IMHO.:)

[bobp]

I'm an economist by education. Even a deep recession usually takes many months to filter through to all strands of an economic chain. However as things stand I'm sensing buoyant prices in the 2nd hand hi-fi market. I sold 4 Quad 405s a year ago when the average was £135 and they're now going for nearer £175 ; Naim shifts briskly as ever, old Exposures seem to sell to the first passer-by, LP12s, Garrards, Technics and old Thorens are escalating rather than holding...

Am I wrong ?

Or is the recession yet to reach its farthest extent ? Or is 2nd hand OK at the expense of retail ? And why would hi-fi be different to other goods ? Theories welcome :confused:

Pete


Pete, what are the safest bets during tumultous times? Anything that has to do with vice and feeling good (Sex and drugs and Rock 'n' Roll :-) . People need to feel good when the times are bad. And when they are getting worse. Much worse. People will eat less and drink more.

IMHO, hifi is no diffierent, but has benefits. Compared to other vice, Hifi is legit, cheaper by the shot and usually will not get you into trouble (unless low WAF or you have a short fused neighbor with an axe at hand)

How about pricing? Is it is really going up? The majority of currences have lost 50% of buying power in the last 2 years. Aussie, Canadian and U.S. dollar,Swiss franc are almost at parity, that happened never in my lifetime. before. Pound is no better, almost at parity with Euro. So, we have real two digit inflation. Compare the cost of used equipment by using price of gold chart.

Heck, if Titanic is going down, it is much better with a good soundtrack.

[hifi_dave]

The past few years, my customers have been in the 40 + age group. I rarely see youngsters now and it's the 'oldies' spending the money. Another trend is that they are spending sizeable amounts on upograding their systems rather than starting from scratch.

Probably because of the way (or not) I market myself, the customers tend to be enthusiasts and are, therefore, looking for or not put off by valve amps, heavy turntables and big box speakers.

Fortunately, the recession doesn't appear to have hit my customers yet.