Economics of high end gear

[PHC1]

I'm sure most of us don't need a reminder how expensive this hobby can get but perhaps it would be an interesting thread if we focus on it and analyze our habits and approaches to building a system.

I was reflecting back over the 30 years I've been into high end audio and what I would have done differently today if I was to start from scratch... Well, I kind of am again. So here goes.

I actually got the inspiration to post this after reading some Luxman reviews online. Luxman has been around since 1925 and throughout history they have a tendency of bringing out new products and refreshing the line every 8-10 years or so. (Perhaps some changes such as USB inputs became a necessity and triggered a shorter span update)

All too often the road to building a great system is fraught with baby steps and many upgrades along the way. No doubt this is Psychological. We tend to need time to overcome the sticker shock, the inner battle of paying for gear sometimes more than a nice car or even a condo or more.... audio gear is many financial sacrifices for most of us. We work our way towards that dream build, breaking ourselves down and beating down that inner voice that says "NO" "Control yourself!" Finding justification for owning expensive gear and finally succumbing to the desire just like any other purchase of an object of "desire".

While the justification of starting out small and "working your way up" may seem like the financially responsible thing to do, I think it is quite the opposite.

Let's break this down. Typical scenario for most of us is that we know what we covet. We have done our research, we have visited high end audio boutiques, we have heard the ultimate for our ears within a lofty but still not insane all things considered level.

I want amplifier XYZ which costs $15,000. We will assume retail prices and the typical 50% recovery if you are lucky, often it is less.

So, the $15k amp is out of reach for now. Let's work our way up to it.

I will settle for ABC that costs $4k for now. Exactly one year later but let's say 2 years for the sake of argument, I will sell ABC at a loss and recover 50%. Armed with $2k we now buy amplifier DEF for $6k by adding another $4k we have saved up over the 2 years for the next purchase. Now we own amplifier DEF and we have spent $8k total.

Another 2 years down the road we sell the DEF and recover $3k. Armed with the $3k we buy GHI for $10k. Still coveting the XYZ at $15k, we finally convince ourselves that the GHI needs to be sold and the dream amp finally becomes a reality. We sell the GHI, recover the $5k and by throwing another $10k on top which seemed like an insane purchase 6 years before, we finally buy the XYZ...

So the road to XYZ at $15k has cost us $25k and the whole time we were thinking of XYZ instead of being truly happy and content with our dream purchase of the said XYZ.

Now, had we bought the XYZ at $15k, having sold it 10 years down the road as something else is finally truly worthy of an upgrade and recovering 40%, it would have cost us $9k. $9k divided by 10 years or 3650 days is $2.46 a day.

I think it is pretty clear that taking baby steps to your goal is simply the worst economical way to achieve that goal.

So.. what would I do differently or suggest to someone just starting out. Get as much exposure to high end gear as possible, get to know the brands, listen to them, know what you want. Set a lofty but not unachievable goal. Either save up without blowing your money on lesser gear or take out a loan or simply write that insane check but LOVE, RESPECT and ENJOY your gear for a very long time without having to upgrade and YOU WILL SAVE MONEY.


Thoughts? Comments?