Why did the receiver war of the 70s end?

[danrclem]

The Yen had a lot to do with it.

I'm not sure how many of those units over 160 watts per channel were ever sold. Couldn't have been to many to make it worth the manufacturs to make a profit on them.

You may very well be right but it got people to come see them and listen to them. Even though the majority of them didn't buy the monster a lot of them bought a lesser model. Marketing strategy.

Most people probably don't know what a Ford 427 SOHC engine is but Ford lost quite a bit of money on every one that they sold. It was developed for Nascar but wasn't allowed to be used for that purpose ('cause it was so powerful and fast) so it never was put in a production vehicle.

 

[Djcoolray]

Design compromises due to a lack of profit. Has no one wondered why the quality in Europe and Asia is so much better? If your a stereo component manufacturer and most of the units you sell in a certain country are lower end to middle quality your not making such a great profit and to raise their profit they made the equipment cheaper. Quality costs money and in Asia and Europe people will spend more money on stereo equipment by saving up. Most Americans went into a stereo retail store and drooled over what they loved to own and walked out the door with something much cheaper. Not so in Europe, you should check out what used stereo equipment in the capitol of any major European city is being sold for on Craigslist. Socioeconomic definitions.....of why we Americans spend less money on things.

 

[DaveVoorhis]

you should check out what used stereo equipment in London is being sold on Craigslist.

There are probably some exceptions, but much of the "too good to be true" that appears on the London Craigslist is too good to be true, and so it isn't true. Here in the UK, Craigslist is rife with liars and thieves. eBay UK, which is several notches up the Internet used-goods food chain, is probably a better reflection.

...Aside from the scams, of course. Caveat emptor.

 

[Killer Fox]

You guys totally missed the point. The point is people (Americans anyway) will buy the gadgets they want regardless of income if it isn't too out of reach price wise. Even if they aren't "rich people".

When there are less electronics to choose from simply because they aren't invented yet that also leaves more budget for that one "big" piece.

 

[Nightwisher]

You guys totally missed the point. The point is people (Americans anyway) will buy the gadgets they want regardless of income if it isn't too out of reach price wise. Even if they aren't "rich people".

When there are less electronics to choose from simply because they aren't invented yet that also leaves more budget for that one "big" piece.

You're right. Smartphones and HDTVs are ubiquitous across all income levels. So were stereos back in the day.

 

[RamblinE]

You guys totally missed the point. The point is people (Americans anyway) will buy the gadgets they want regardless of income if it isn't too out of reach price wise. Even if they aren't "rich people".

When there are less electronics to choose from simply because they aren't invented yet that also leaves more budget for that one "big" piece.

All four major carriers have been and will continue to be engaged in marketing practices that downplay the cost of the device from the consumer's consciousness and instead sell how easy it is to afford that product on a two year contract or device payment plan.

If it wasn't for the fact that I work in sales and engage in this practice as part of my job, I never would think too much about the actual full cost of my devices.

Suffice to say I don't think that was a great example but I do see your point. The world that we live in has great ways of nickel and diming you if you let it.

 

[DaveVoorhis]

You guys totally missed the point. The point is people (Americans anyway) will buy the gadgets they want regardless of income if it isn't too out of reach price wise. Even if they aren't "rich people".

True of phones because they're bought via a monthly rate on a contract and a cell/mobile phone is considered a necessity.

If a monthly contract was the usual way to buy an expensive stereo, and an expensive stereo was considered a cultural necessity the way it was in 1978, then this thread would probably be wondering if the receiver war was ever going to end.

 

[Tom Brennan]

Did you not see the "quotes" there? Let's hear more about the contempt you KNOW I have. Oh and let's also hear about my religion since you seem to think I believe in hell.

From one post. Damn you are good!

I took the quotes as sarcasm and added contempt and perhaps as racism in the bargain--code words. I only know you from your own words. If you fail to express yourself properly that's your fault. You should write very carefully when dealing with class and race, very touchy subjects.

 

[blhagstrom]

I believe most of you are missing the greater reason.
We were in a global recession in late 1979 through early 1982.
Stagflation was killing us and the nationwide unemployment rate was over 10% by 1982 with some states above 15%.
I was living in Ohio at the time and Ohio and Michigan were hit hard particularly.
Inflation had set in driving interest rates up.
Gone were the days of extra money to buy those totl Pioneer,Sansui,Marantz receivers.
We bought our first home and home mortgage rates were approaching a staggering 17%!
I thought I dodged a bullet when we were lucky enough to get seller financing at 11% fixed.Japan's economy was doing even worse.
They had to quickly scale down the price(quality)of electronics to make the sales back then.

Bob

Stagflation and Reaganomics.
Damn the 80s.

I'm from ND.
It hit HARD!
The prices of everything (consumer goods, energy) went through the roof.
The value of everything (property, real estate, commodities) went through the floor.

Actually, I am from ND because of the 80s. Otherwise, I'd still be there.
A whole lot of what's happening now looks a lot like it did then.

 

[maxhifi]

All four major carriers have been and will continue to be engaged in marketing practices that downplay the cost of the device from the consumer's consciousness and instead sell how easy it is to afford that product on a two year contract or device payment plan.
QUOTE]

In the not so distant past, stereo systems were also widely sold on a monthly payment basis, on terms which could be best described as predatory.

 

[ducati_EL34]

Stagflation and Reaganomics.
Damn the 80s.

I liked the 80s and Reaganomics. It worked well down south.

 

[unfairlane]

If I remember this correctly I think it was the stereoracks that killed the recievers

 

[chef free]

Those monster receivers were flagship models that most of us could only drool over. But, like in any other market; think cars, guns, telescopes, etc., they were to attract you to the brand and get you to buy something you COULD afford.

 

[62caddy]

Gentlemen...let's try to remain on topic and leave the politics out.

 

[Cajunchuck]

If I remember this correctly I think it was the stereoracks that killed the recievers

Along with things like Walkmans, etc.

 

[dave1701]

I've learned so much of my audio knowledge from AK that I thought 100W and greater was normal.

 

[Nightwisher]

On the monthly payment basis, check out Williams v. Walker Thomas Furniture. Maxhifi is right, there were predatory practices back in the day based on monthly payments. In this case (which I studied last semester), a lady bought furniture and a stereo and the payment plan didn't allow her to ever pay it off basically.

A bit off topic, but related to what we were discussing.

 

[RamblinE]

Predatory sales practices or incompetent consumers? To be fair, I've seen both. I've seen store managers "promoted to customer" for instructing sales reps to bundle x, y, and z into customer's bills and tell them that they're getting these things for free. I've dealt with my fair share of people who want the expensive thing now and they'll figure out how to pay for it later. What, am I supposed to say, no?

I spent almost two years crunching numbers and driving cars until I found one I wanted, and could easily afford come hell or high water. How many times have we all heard the story of somebody who walks into a car dealership to "just take a look around" and leaves with a new car?

 

[maxhifi]

Predatory sales practices or incompetent consumers? To be fair, I've seen both. I've seen store managers "promoted to customer" for instructing sales reps to bundle x, y, and z into customer's bills and tell them that they're getting these things for free. I've dealt with my fair share of people who want the expensive thing now and they'll figure out how to pay for it later. What, am I supposed to say, no?

I spent almost two years crunching numbers and driving cars until I found one I wanted, and could easily afford come hell or high water. How many times have we all heard the story of somebody who walks into a car dealership to "just take a look around" and leaves with a new car?

In the late 1990s, a friend (then in his early 20s) called me for advice from a stereo show room, and asked me if what he was being sold was a good deal, or not. He had just got his first job, and went out to get a music system. The salesman had put together an A/V package involving a stereo and a big screen TV, with a list price of almost $8,000.

He went through the list of equipment, and asked me if what he was being sold was a "good deal" or not... I told him leave the store immediately, if you want to spend that sort of money there's a lot of good options. The salesman didn't relent though, and even promised him this system would help him get girls! The only reason he didn't take it home, is his credit was rejected at the last moment.

I later read about that same store in the newspaper having lawsuits against them, for things like selling high end TVs to little old ladies, and more or less extremely unethical sales tactics against vulnerable consumers. Now, I do agree that we live in a free country and the buyer should be responsible for what he agrees to, however I also think that a salesman has some ethical responsibility to at least attempt to match a client's needs to what he can afford, and not just upsell everyone with a hint of gullibility on equipment they don't need and can't afford and a payment plan with insane terms, like high interest and an extremely protracted payoff period.

 

[RamblinE]

An ethical salesman in a properly structured environment has two big incentives not to screw the customer. 1) Returns are deducted from commission and 2) Treat the customer right and you earn return business in the future.

Hell, seeing my name in the Google reviews for the store I work in was also pretty awesome.