Re-Tales

Unless you live under a rock, you've followed Russia's invasion of Ukraine. You know something about sanctions against Russia and Russia's responses to those sanctions. If, in addition to not living under a rock, you're a tube-audio aficionado or electric guitar nut, you may have thought about a likely consequence of that war that's far less momentous than the destruction and carnage we see on TV: Will I be able to get new tubes for my amplifier? Especially those lovely Russia-made tubes.

Like many fans of music on vinyl, I've grown accustomed to waiting for preordered records. For several years, record-pressing plants have been oversubscribed; there just aren't enough presses to keep up with demand. When vinyl declined in the 1980s—replaced first by cassette tape and then by CD—old presses were abandoned, falling to rust and disrepair before the vinyl revival, leaving the industry with limited capacity.

Attracting new customers is essential for brick-and-mortar dealerships' long-term survival. Over the last several years, many b&m dealerships have continued to expand into home automation and custom installation. Home theater is also undergoing a resurgence. These services can support—and complement—two-channel audio-equipment sales.

I spoke with people working in hi-fi to get a sense for how the industry is evolving. Here's one way: Some companies at the market's higher end are eschewing the traditional distribution model, in which a domestic company serves as middleman for products from overseas, buying and reselling inventory to dealers and then providing support. In the newer model, distribution services are provided by the overseas manufacturing company itself, either directly or via a US subsidiary. Brinkmann, dCS, Estelon, Gryphon, and T+A employ variations on the model.

In last month's Re-Tales column, I discussed the impact the current economy is having on the hi-fi industry. Some hi-fi companies said sales have "normalized" after widespread, dramatic increases during the COVID years—which is to say, sales are down relative to their peak but still strong. Others have noticed customers biding time before making expensive purchases or opting to buy less-expensive equipment than originally planned. Yet, even in this risky economic climate, a few people are taking the risk and opening new brick-and-mortar retail stores.

Those of us who aren't wealthy must often sell something before we can buy a new piece of hi-fi gear, and it's usually another piece of hi-fi gear. Selling in order to buy makes a great deal of sense because, after all, you only need one of everything (or two in the case of speakers) at a time in a two-channel system.

Another secondary-marketplace incentive: As I pointed out a couple of Re-Tales columns ago, the higher prices rise on new equipment, the more appealing pre-owned gear becomes.

Several traditional hi-fi dealerships have shuttered in recent years: NYC's Lyric Hi-Fi and Chicago's Audio Consultants are prominent examples. A few new brick-and-mortar shops have opened, but it's rare to see a next-generation owner breathe new life into a long-established dealership. Christopher Brewer (above) is doing exactly that with New England Hi-Fi.