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It shows that there isn't always a direct correlation of price and performance, and that sometimes buying a product because of the name-badge isn't worth it.
Recently, there has been a on-line furor over an audio manufacturer having supposedly re-badged another manufacturer's component as its own (with a sweeping price increase). This <A HREF="http://forum.stereophile.com/forum/showflat.php?Cat=0&Number=80790">prac... has been going on for years: Some high-end audio manufacturers have always taken mass-market components and used them as the basis for their own products. How do you feel about this?
Qualifying response: Just as in almost all industries these days, there are only a handful of actual manufacturers. If a company uses another company's product as a base (through an agreement) to benefit from economies of scale, than I don't see a problem. Otherwise it would be like saying, because several A/V processor manufacturers that use the same scaler chip-set all are clones. However, if a company does nothing more than re-badge, without adding any value, than I think that could potentially be misrepresenting their product. At the end of the day, it's up to the buyer to determine what is of value to him/her individually. Otherwise, we might as well just have the government tell us what is okay for us to have and just make one product.
Okay, so top dollar is the game, but the bottom basement is the product? If people only knew that LG made 98% of all LCD panels on the planet. And that B&O is only a Philips in a dress. And HK is JBL. And, well, digital is digital, and there is no better digital.
It really depends on the mark-up and the benefit. If it's just a faceplate, no. If it's custom electronics, maybe, but this new world is extremely value conscious and information savvy. You can't expect to put in $5 worth of parts and make it a $20k piece of kit unless your only customers are employees of JP Morgan
I feel that many manufacturers of at least the amplifiers do just that anyway: use the same cheap, uninspired circuits like everybody else, add a thick metal case and sell it for premium prices. Re-badged components are the ultimate expression of this idea. Scam!
When I buy a piece of gear, it's nice to think that some creative thinking went into it, not just creative marketing. As the owner of a company that makes audiophile footers, turntable mats, etc, I do believe that the tweaks some manufacturers make a difference. But one can get similar improvements in a much more cost-effective way by experimenting with different footers and power conditioners—not to mention simply optimizing speaker positioning. But if the brand is all important, then yes, I can see why some people would pay more just to avoid an Oppo component with their "high-end" gear.
Unfortunately, completely propriety high-end audio design is a rare commodity; however, there are a handful of companies that play to their own beats. Proprietary and original ideas/designs ought to be rewarded in the marketplace.
It is a not so subtle sign of how good often derided "mass-market products" really are, and how little boutique brands have to offer on their own, beyond marketing gimmicks and sky-high prices. That said, it's the consumer who is willing to pay up who's really taken for a ride here.
Brand names have value. If a brand chooses to incorporate another manufacturer's product(s) into their device, it should be noted by the brand, that the addition(s) and any improvements that may be implemented is to increase the performance, hence an increase in value. We all have seen other brands boast of using other brand components in their A/V devices. I won't list because most A/V folk know what I am writing about. When a brand chooses to take another manufacturers brand and simply "re-names, re-brands, re-jackets" that manufacturer's device without stating any factual improvements, other than pure cosmetics, that simply is wrong from a true value philosophy. Although it is not wrong legally, it totally violates the value of the brand. And the trust of which is has earned, is now very much in need of repair. This really comes to down to caveat emptor. Most of my purchases have been made by researching websites, blogs, and reviews. When paying any amount of money, (we're talking principle here) the buyer should always be aware of where he is putting his money. Not every purchase is perfect, but if you spend a little time looking, you can reduce your risk.
If it is done with honorable intentions, a healthy dose of knowledge, and true advancement, then it can work out very well, especially for digital disc spinners. Example; most early high-end CD-players were based upon standard Philips models (Meridian, Cambridge, etc). Some of those players were really only harvested for their drive and display/logics parts, with all else new. The best examples were the Cambridge players; extremely musical machines! Others added clocks, etc, to good commercial players from Pioneer, also to good effect. Re-badging and bumping price, however, has nothing to do with the goal of supplying honest products.