General Forum

Re: Has the economic crisis changed your B&O spending habets?

XavierItzmann — Wed, 09 Dec 2009 23:20:05 GMT

vikinger:
The Bentley is not dismissed as some sort of rip-off (and Bentley seem to be maintaining sales in this recession.) (This wouldn't be true though if Bentley used a Mini powertrain!)

The Bentley Continental GT, Bentley Continental GT Convertible and Bentley Continental Flying Spur all use Volkswagen W12 engines coupled to "ZF"-brand transmissions made in Germany.

The same powertrain is used on Audi A8 W12, VW Phaeton W12, and VW Touareg W12.

Re: Has the economic crisis changed your B&O spending habets?

moxxey — Sun, 06 Dec 2009 15:14:48 GMT

vikinger:

Are B&O helping themselves? There has been one price rise this year (UK) and maybe more exchange rate changes to come. There's a good chance that in the UK the VAT rate, due to return to 17.5% from 15%, will actually go to 20%

Although it's unlikely to rise again any time soon (although 18% has been mooted), don't forget that the 2.5% rise in January will also mean a rise in B&Os UK prices, which have risen twice in the last 12 months!

If 18% or higher does happen, it will be after the next election...

Re: Has the economic crisis changed your B&O spending habets?

vikinger — Sun, 06 Dec 2009 09:29:40 GMT

XavierItzmann:

For at least a limited time, anyone wishing to read the cited McKinsey Quarterly article simply has to follow this link and register for free at the McKinsey site. Certainly does not bode well for BV 7-55 sales! Cheers,

http://bit.ly/5mbmZz

Thanks for the link.

Unfortunately if you read this article and then try to follow-up with the consumer electronics link, you can only read the first section of that article without paying the premium subscription................ but you can guess the conclusions!

The question for B&O is whether they are perceived as an upmarket electronics company providing products undifferentiated from the mass producers. I'm not sure that they are in this category, but I think buyers may defer purchases rather than go for alternative electronics. Existing owners are bound to value the use of their Beo4/Beo5's for example and will hesitate to change unless they're going to ditch B&O altogether.

Are B&O helping themselves? There has been one price rise this year (UK) and maybe more exchange rate changes to come. There's a good chance that in the UK the VAT rate, due to return to 17.5% from 15%, will actually go to 20% as the Exchequer tries to recover lost tax revenues. Mass produced electronics goods, however, continue to fall in price, continue to be overtaken (technologically speaking) by new products, and provide next to no profit margins for retailers (hence very high turnovers required).

One concern that I have is that 'Audiophiles' frequently dismiss B&O. Car owners can see the difference between a Mini and a Bentley, but they accept that the Bentley may cost ten times as much although it achieves more or less the same thing as the Mini. The Bentley is not dismissed as some sort of rip-off (and Bentley seem to be maintaining sales in this recession.) (This wouldn't be true though if Bentley used a Mini powertrain!) B&O need to demonstrate that ther products both look and perform better than the competition........ in which case they will be able to charge a high premium. If the perception is that the products are inferior (or other manufacturers products dressed-up with nothing technological added) then B&O may have a long-term problem.

Personally, I still feel positive about the brand.

Graham

Re: Has the economic crisis changed your B&O spending habets?

moxxey — Sun, 06 Dec 2009 03:59:10 GMT

dilznik:

Quitting my job, moving to Australia, traveling 30,000km in a Land Cruiser through the land... that has changed my spending habits. Ramen anyone?

Just out of interest, how did you get in Australia? I've looked at moving and, even with my IT qualifications, would struggle to be accepted. Unless you have a job offer over there, it seems getting in 'off your own back' is near impossible these days!

Ironically, I work for an Australian company, but only as a contractor - so that doesn't count.

Re: Has the economic crisis changed your B&O spending habets?

XavierItzmann — Sun, 06 Dec 2009 02:30:51 GMT

elephant:

There is a certain irony that McKinsey wants to charge for this article given its theme :-)

none the less I think this is a real danger for luxury brands ...

How the recession has changed US consumer behavior

Companies waiting for a return to normality following the recession may be disappointed. Their customers have tried cheaper products—and actually like them.

(Premium membership required)

For at least a limited time, anyone wishing to read the cited McKinsey Quarterly article simply has to follow this link and register for free at the McKinsey site. Certainly does not bode well for BV 7-55 sales! Cheers,

http://bit.ly/5mbmZz

Re: Has the economic crisis changed your B&O spending habets?

linder — Sat, 05 Dec 2009 21:33:05 GMT

elephant:

There is a certain irony that McKinsey wants to charge for this article given its theme :-)

none the less I think this is a real danger for luxury brands ...

How the recession has changed US consumer behavior

Companies waiting for a return to normality following the recession may be disappointed. Their customers have tried cheaper products—and actually like them.

(Premium membership required)

I tend to agree with you. However, there have been at least 3 recessions since 1980 in the US. Its in the 90's that B&O opened most of their stores in the US.

Re: Has the economic crisis changed your B&O spending habets?

dilznik — Sat, 05 Dec 2009 21:14:32 GMT

The economic "crisis" hasn't changed my spending habits.

Quitting my job, moving to Australia, traveling 30,000km in a Land Cruiser through the land... that has changed my spending habits. Ramen anyone?

Re: Has the economic crisis changed your B&O spending habets?

elephant — Sat, 05 Dec 2009 21:03:19 GMT

There is a certain irony that McKinsey wants to charge for this article given its theme :-)

none the less I think this is a real danger for luxury brands ...

How the recession has changed US consumer behavior

Companies waiting for a return to normality following the recession may be disappointed. Their customers have tried cheaper products—and actually like them.

(Premium membership required)

Re: Has the economic crisis changed your B&O spending habets?

XavierItzmann — Tue, 01 Dec 2009 22:31:19 GMT

We've just plain run out of room to keep adding things. Already have a BeoCenter 2500 and a BeoCom 6000 in storage due to lack of space.

The BS 5 is tempting, but my wife opined it would add a mess of cables or would have to perforate walls yet again. Perhaps if it were a wireless device?

Tried the BV 7-55 last week at the dealer. Beautiful, but we do not own a TV and see no reason to buy one at this time.

Re: Has the economic crisis changed your B&O spending habets?

GuyHui — Tue, 01 Dec 2009 09:26:26 GMT

cooldude:

I want to enjoy building my B&O system one bit at a time and don't want to fill up the whole house in one year. It gives me something to look forward to, plan and save up for. Constantly upgrading bits at a time gives me great satisfaction and always something new to play with.

......

I share the same view as you Cooldude. I like to build my B&O system one bit at a time. this gives me the satisfaction to accomplish a personal project.

As for the purchase, I will plan to focuse on second hand items regarding the loudspeakers. Why not sell my BL8000, BL4000 et BL2 to get the marvellous BL5's in second hand. I am thinking of doing this.

Next purchase is the Beocom5 to replace my recently dead Beocom6000. This one gave me ten years of excellent service.

Last but not least, I would be happy to see a BV10 in 50".

Cheers,

Guy

Re: Has the economic crisis changed your B&O spending habets?

cooldude — Fri, 20 Nov 2009 09:48:11 GMT

Personally I spent more on B&O this year than I did the previous 3 years combined. Though I didn't buy any new big ticket items.
I want to enjoy building my B&O system one bit at a time and don't want to fill up the whole house in one year. It gives me something to look forward to, plan and save up for. Constantly upgrading bits at a time gives me great satisfaction and always something new to play with.

It's indeed true that B&O's pricing is getting to the point of beyond reach for most of us.Beovision 7 or 9 pricing has frankly become unrealistic, ..... no matter how good the image/sound/design/capabilities are. They'll just end up being outdated in a year or two. The cost and hassle of changing the panel every 2 to 3 years is just not justified.

I do like the (with less bells and whistles) BV8 and especially the new BV10 which just stole my heart as my all-time favourite B&O tv !!!!
B&O has always produced really good speakers and I find them more than competitive (even the BL5) with anything else out there... !!

This year I upgraded from my 80's beosystem 5000 to a 90's beosystem7000 which I really like. I want to keep it separate as a dedicated music playing system. Next year I want to invest in a pair of BL5000's to complete it. it's connected to an airport express. this Christmas I want to add a good dac to this setup.

For daily use I have an AV7000 which is an easy home theatre solution connected with Mcl2p's to 5 pcs of (upgraded) CX100's. I have almost finished restoring a 'lost cause' Ouverture that will be added to handle daily audio requirements (radio,cd etc) . All has been hooked up to a MAC mini and NAS for full mediacenter use. Works great. I will add a beoport to this setup if an updated software for mac will be available. Hopefully next year...

End of next year I already have planned to change the front cx's with BL8000 or wall mounted BL6000's. Next item on the list would be a B&O tv which I will have to buy new as no second-hand ones are available here.

Re: Has the economic crisis changed your B&O spending habets?

avus17 — Fri, 20 Nov 2009 03:20:43 GMT

I have BV7 32'', BL8000, BL 9000, BL2, BS2 and Serenata and will not buy new product for a long time. B&O prices rise from year to year but salary stay the same or goes even down as many enterprises cut money to get trough the crisis.

For me real B&O products are BV7, BV9, BV4 and BS9000,BS5 and BL8000, BL5

everything else is not worth the money they demand.

In the future I might consider second hand BV7 40'' MKIII but this will be after 2010.

I am not buying new stuff as prices fall quickly.

Re: Has the economic crisis changed your B&O spending habets?

elephant — Fri, 20 Nov 2009 03:04:43 GMT

j0hnbarker:
I had heard that the impact of the slowdown hadn't really affected Australia too much (though I will stand corrected on this), but wasn't aware of the impact in NZ.

I think that the impact in Oz is varied; full time employment fell, but part time employment surged.

There is no doubt that China's demand for resources has carried us through ... without the Chinese economy we would be suffering across the board. Unfortunately the government's stimulus package passed me by, and in any case it might have only gotten me a BeoTime ....

I think our cousins across the way who lived under a long white cloud have seen it turn grey ... but maybe BenJ can better explain

Re: Has the economic crisis changed your B&O spending habets?

Mr10Percent — Thu, 19 Nov 2009 21:28:54 GMT

I have the following equipment in everyday use:-

Beolab 5 (2004)

Beolab 3 (2004)

Beovision 7-40 (2006)

Beolab 7-2 (2006)

Beo5 (2007)

BeoSound 5 (2009)

In essence, I think it is a pretty nice set-up and looks as good today as the day it was bought. The current economic climate has not curtailed my B&O spending but I just don’t see the need to upgrade every piece of equipment every two minutes. I also think the residuals on trading B&O equipment are not what they once were. My current equipment should be perfectly serviceable for many years to come and perhaps there will be an upgrade to the TV when something comes out that justifies the replacement of the 7-40.

In the meantime, Aston seems to be doing a better job of making me skint.

10%

Re: Has the economic crisis changed your B&O spending habets?

jk1002 — Thu, 19 Nov 2009 21:28:18 GMT

Similar as mjmedlo I bought a lot over the last years and have more then I need at this point.

Would I defer purchases if I would not have everything I need? Probably yes.

I feel this is a good time to buy stocks and I have to work much harder for my money right now and am not sure how long I want to keep up with it if it doesn't turn around.