Quality Cans: Missed Marketing Opportunity or Well-Kept Secret??
Jun 13, 2005 at 3:39 PM Thread Starter Post #1 of 41

gratefulshrink

Headphoneus Supremus
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As I've been getting deeper and deeper into audiophiledom (and debt!), I have been wondering more and more why Bose is just about the only headphone that advertises in the mass media (at least in the US). I'm wondering why Senn, Beyer, and AKG don't try to advertise. Do they just not have the budget? Do the companies want to remain small and elite? In the past 1-2 years, I have seen entry level Senn models near the check-out line at Tower records. Before that, all you would see might be crappy phones for 10 or 20 dollars. So, at least Sennheiser is moving some products in the mass market.

I don't mind being one of the lucky few who have had their heads turned on, but I think more people out there would drop $100-150 dollars on great cans, especially since the mp3 players have shown us that people are willing to spend alot for portable music. In fact, that would probably be the best marketing angle for Senn, Beyer, and AKG, et al. to use: if you've bought a $300/400/500 ipod, why waste the sound on $20 headphones/earbuds?

Am I missing something here?
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Jun 13, 2005 at 3:49 PM Post #2 of 41
I'm thinking that it is a budget issue for many companies. Additionally, for many companies that have other products other than headphones (AKG, Beyer, Senn, Sony, and etc.), I don't think large investments involved in mass media advertisements don't justifuy the potential yield that may return.

Now that I come to think of it, are there really any headphone only companies? Grado, and maybe Stax? Stax did used to make other components, though.
 
Jun 13, 2005 at 3:51 PM Post #3 of 41
I agree. Living in a medium size North Carolina city it is really hard to find any good phones in any of the stores.You have to drive to Knoxville or Atlanta to get Grados,or order off the internet.
 
Jun 13, 2005 at 3:58 PM Post #4 of 41
Quote:

Originally Posted by Salt Peanuts
I'm thinking that it is a budget issue for many companies. Additionally, for many companies that have other products other than headphones (AKG, Beyer, Senn, Sony, and etc.), I don't think large investments involved in mass media advertisements don't justifuy the potential yield that may return.

Now that I come to think of it, are there really any headphone only companies? Grado, and maybe Stax? Stax did used to make other components, though.




Well, Grado makes cartrigdes, too, so I see your point.

It just seems to me (and I admit that I have no business training or background whatsoever) that really mid-level quality cans could make it into the mass market. The tipping point on price seems to be $100, but all the good headphone companies offer one or more quality cans for under $100.

I just would like to see more people turned on and tuned in.
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Jun 13, 2005 at 4:03 PM Post #5 of 41
I think that phone companies know most avg consumers don't really care. most people don't mind using crud buds on the go and listening through speakers at home or car. And in regards to record companies, I don't think that many give a damn about good sound. Cmon, a lot of new maisntream albums are recorded poorly or made "hot" on purpose. Listening to those on a decent phone may cause the user to chuck those CDs in the crap bin.
 
Jun 13, 2005 at 4:05 PM Post #6 of 41
I think the majority of people don't care enough about the quality of their headphones. So in effect, advertising your more expensive, audiophile quality headphones to a mass market wouldn't be very effective. The audiophile will seek your products and find them if they desire. Many companies cater to the music and recording industry, anyway, so that is where their business lies. The mass market music consumer is only interested in cool looking clip-ons and such. Buying a somewhat bulky, expensive headphone would be out of the question, it's not cool enough. Plus, as is evidenced by the general popularity of Sony DJ cans, most prefer an non-audiophile sound.
 
Jun 13, 2005 at 4:30 PM Post #7 of 41
My take on it...

it all comes down to $$$, forecasted volume/sales, and return on your investment dollar.

Lets say the advertising campaign costs $500000 to market/promote an SR80.
Lets say you forecast to sell 4000 SR80s a year at $100 each.
Lets say cost of goods (manufacturing, raw materials, shipping, packaging) is $50.

That nets, $50 per SR80 sold as proffit.

Since you sell 4000 per year..... 4000-year x $50 = $200000 net proffit per year.

Thus it will take you 2.5 years just to break even on your marketing investment. Of course the more you advertise, the more your forecast increases, and hence the quicker you can recover your advertising dollar. But the initial investment is a big risk.

Im guessing that the limiting factor is forecasted sales. The public in large just doesnt care to spend that much on a headphone.... at least not ENOUGH people to recover the advertising dollar. I have 2 co-workers one with a Dell and another with an ipod (very costly MP3 players IMHO). They both listened to my e2c, and MS2... Neither could justify $70 for the Shure and $300 for the Alssandro. Heck... they demo'd my KSC75 and I told them that was $20. They shook their head thinking.... "Oh my stock apple buds dont sound THAT bad since they're basically free and come with the player"
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I'm guessing Bose is a multi-billion dollar company... when you factor in ALL their other acoustic products, and their OEM sales division. Theyre probably one of the few headphone companies with the financial stability to take on such an advertising campaign. Thats probably also why triports are priced the way they are.

Just my 2 cents,
Garrett


And further.... my co-workers thought I was totally insane investing in a $300 MS2 + $65 PA2, only to team it with a $120 MuVo. I would LOVE to upgrade my source, but funds have been used on amp/cans.
 
Jun 13, 2005 at 4:40 PM Post #8 of 41
Quote:

Originally Posted by milesbeyondjazz
I agree. Living in a medium size North Carolina city it is really hard to find any good phones in any of the stores.You have to drive to Knoxville or Atlanta to get Grados,or order off the internet.


Been hanging around Statement Audio, have you?
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BW (in K-town)
 
Jun 13, 2005 at 4:52 PM Post #9 of 41
Quote:

Originally Posted by kramer5150
Lets say cost of goods (manufacturing, raw materials, shipping, packaging) is $50.


More like $5 for the SR80.
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Jun 13, 2005 at 5:03 PM Post #10 of 41
Everybody has been making valid points. It still bothers me, however, that really good products find their way only to a few thousand ears, while very average or crappy products find their way to millions of ears.

Why hasn't one of the top can companies teamed up with Apple or some other mp3 manufacturer and paired some good cans with an ipod, for example? I mean Apple has paired the ipod with an entire automobile, LOL, how hard would it be to market one of the decent Etymotics or Shures with an ipod (special deal and all)?

Maybe I should quit my job, and just figure this out for the rest of my life...?
 
Jun 13, 2005 at 5:17 PM Post #11 of 41
Quote:

Originally Posted by gratefulshrink
Everybody has been making valid points. It still bothers me, however, that really good products find their way only to a few thousand ears, while very average or crappy products find their way to millions of ears.

Why hasn't one of the top can companies teamed up with Apple or some other mp3 manufacturer and paired some good cans with an ipod, for example? I mean Apple has paired the ipod with an entire automobile, LOL, how hard would it be to market one of the decent Etymotics or Shures with an ipod (special deal and all)?

Maybe I should quit my job, and just figure this out for the rest of my life...?



The "top" (ie. most financially successful) can company *has* teamed up with Apple - Bose headphones are featured in Apple stores. The consumer is to blame here, and will be for as long as most of them choose advertising over substance.
 
Jun 13, 2005 at 5:20 PM Post #12 of 41
Quote:

Originally Posted by Gurck
The "top" (ie. most financially successful) can company *has* teamed up with Apple - Bose headphones are featured in Apple stores. The consumer is to blame here, and will be for as long as most of them choose advertising over substance.


Yeah, I guess I conveniently forgot about that.

I still have my dreams....
 
Jun 13, 2005 at 5:23 PM Post #13 of 41
As a slight aside, I'd like to point out that a lot of people on this forum and, even more so in the portables forum, love to complain about how everyone is using an iPod/Triports just because Apple/Bose does a lot of marketing. There's the implication that these people believe the average consumer has been duped into purchasing their product. gratefulshrink, I think you've pointed out something here that I've noticed. It's not that Apple/Bose are evil, hypnotic product-pushers, it's that AKG, Sennheiser, Grado, Beyerdynamic, Ultrasone, Shure, Etymotic, Rio, iRiver, iAudio, and even Sony haven't advertised and/or marketed their product well, if at all. [Creative, with their ad blitz around Christmas time last year is the one notable exception to this.] Advertising and marketing are an investment - you have to spend money to make money.
 
Jun 13, 2005 at 5:31 PM Post #14 of 41
have to keep in mind that millions of people that dont care about headphones either. my friends think im stupid for "wasting" money on headphones.
 

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