Recession, near-recession, gas prices and sales
Tom Martin -- Sat, 06/07/2008 - 09:11
How will the tough economy and gas prices affect home theater sales this summer and into fall?
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Maybe people will invest in there home theater/entertainment systems and stay home to enjoy them more as opposed to spending money on expensive gas and airplane tickets to go on vacation.
You don't "invest" in home theater - you spend disposable income and it evaporates...
Ultra High End companies will see only a slight reduction in orders (the rich are still rich) and commodity-priced products may actually see a small uptick (everyone wants a under $1000 flat screen TV), but mid-priced products and companies are going to take a beating as their customers downsize or just disappear completely.
Given that home prices and re-financing drove much of the home theater custom install market I believe that this year's CEDIA will have a pall that will be visible all the way to Tokyo and Bejing.
Steven Stone
Contributor to The Absolute Sound, EnjoytheMusic.com, Vintage Guitar Magazine, and other fine publications
Your point is taken, although I meant the term "invest" less literal then investing in securities that you would hope appreciates over time. Can't people invest in there hobby so that they have more fun? That's what I meant if you get my drift.
I am curious to learn more about the data on home re-financing funding the custom install market. Where can read more about that?
The economic turn down has dramatically effected the Home Theater and Audio business. Most dealers and chains have seen dramatic reductions in volume. In Florida Sound Advice is bankrupt, Circuit City is close behind and even Best Buy is not doing nearly as well as they were.
I have been a dealer for a long time and this is as slow as it has been in a very long time. There is no middle market at all.
Where we sold systems in the 10-30k area with a Flat panel and some surround system and a universal remote every week we now sell none!
It is all High End and service of what people have bought before.
Go out and support your local independents or you won't have them!