Meridian Unplugged - Powered by MrTechGuy.co.uk Forums Discussion Meridian - Systems Job losses at Meridian Huntingdon (and the state of the economy)

In the UK are Bowers & Wilkins perceived as being aimed at the average wage earner? B&W sell the Zeppelin Air, in-ear headphones, and high end speakers. Affordable on the low end, expensive on the high end.

If your product is not a beneficiary of economies of scale you will have to set your prices accordingly (or reduce costs).

Can I just add this.
I put that I know I am in the top 5% of wage earners as when I saw what that figure was I was gobsmacked, I thought I earned maybe slightly above the average.

The point was, if I supposedly earn what the top 5% earn and I can't afford to buy toys anymore then where does that leave companies selling this sort of product?

I really thought long and hard about posting the original post and nearly deleted it, however, I decided to press the send button as I think it is something that needs to be discussed.



Let's not forget there are plenty of people on here that earn 10x or more than most of us earn.

I agree with your general point completely. Mrs B and I (as a household) are in the top 1% and I would never go near new Meridian products at their current list prices. I simply can't justify it.

Afford it? Yes. Justify it versus other priorities (inc three lots of school fees)? No.

I'm not complaining; we've made our choice(s) and we're happy with them. But it means M has self-selected out of a market containing a lot of people who could/would buy but can't/won't because it has become a choice between M and something else they value more (which might also include paying down debt).

M isn't just middle-class "discretionary spend" any more, it is a luxury purchase. Only time will tell if this is the right strategy for the company to survive. I fear not. I think they're playing in too narrow (& shrinking) a niche with some other more savvy players as competition. Which is a shame.

However the �3500 spend per month you mention needs an income of �61k pre-tax (*) which is a lot higher than average earnings!

Another Duncan

(*) http://www.netsalarycalculator.net/

Thanks for posting that, as I was starting to really regret bothering to post earlier.

I am paid in dividends, so that helps me a lot, and also my wife earns too.

I would have thought that Meridian gear could be for the dedicated enthusiast who may save up for years for a piece of kit rather than it being part of the annual expenditure (my D600s are 22 years old). And the very well off or as a retirement treat and such like.

Couple of points, second hand gear can be obtained pretty reasonably and then still has value on resale, if times get tough, or the wife finds out. Price lists, I doubt too many pay list price.

I would have thought luxury brand is exactly the right place to be right now, smart marketing, the sector least likely to cut back spending.

One thing M should consider, is trying to maintain second hand market values. Not rocket science.

Cheers Tintin

For those of you wanting a better understanding of the financial crisis that we find ourselves in these days, I recommend "THIS TIME IS DIFFERENT" Eight Centuries of Financial Folly. by Carmen M. Reinhart & Kenneth S. Rogoff. The book explores the various financial crises in history cause, effect and duration. When I see Professor Rogoff on the tv I turn the volume up.

Regards,
Gary

gIzzE, I do think you make a very fair point. When members of this forum, the demographic of which is largely in the upper end of the pay curve, start to decide that most Meridian gear is too expensive (myself included), you do have to ask who's left to buy. Oligarchs?

On the point about redundancies, my heart goes out to the staff at Huntingdon. It's a horrible process to go through, and I sincerely hope those who lose their jobs go with a decent package, and manage to find alternative jobs quickly.

George

The West is starting to matter less and less. A company such as Richemont is all too aware of this. I am not surprised to hear that Meridian is reducing its staff. It does suggest a total shift away from detailed manufacturing towards more bits and bytes of Sooloos. My other issue with the UK is with its currency policy. It doesn't help the local manufacturer, in the slightest. I think it's done away with your auto industry and is on its way to do away with its specialty audio industry. (Naim just merged with Focal, how is that going to work!)

Here in the states, there has actually been a rise in specialty manufacturing and lowend manufacturing returning to the USA, from Asia. I would note that PS Audio just relocated it's manufacturing back to Bolder.

Personally, I have been shocked that Meridian, Naim or any company with limited distribution has survived or even stayed in the UK.

I am sorry for the employees of Meridian, there is nothing they could to prevent this. Modest pay cuts, increases in productivity wouldn't have prevented this.

Very sad

I am very sorry for both the staff and Meridian: it is bound to have a knock-on effect upon morale.

Meridian always used to compare the cost of their systems to the cost of a nice car. Perhaps people can no longer have both: it is all a matter of priority. I certainly chose Meridian and drive a small, old, cheap car.

And I know people for whom hi-fi and music is a central part of their life and they spend accordingly. They save hard and build up their system in small stages.

What is odd is that Meridian should axe the M80 before offering a replacement (perhaps the M80 had become too expensive to build, or parts had run out). The M80 represented a very good entry point to the world of Meridian that was within the finanacial grasp of more than just fat cats.

Problem is you can go and get yourself a brand new Mercedes C250cdi Sport Estate EDITION 125, which is a �38,000 car for �900 deposit and �300 a month including vat now on contract hire. Mercedes is probably still just about considered a luxury item and even that is cheap as chips.

I wonder if Meridian should consider offering some finance packages?

People like Bose allow you to buy their �1000 wave radio or whatever it is called over 24 months interest free, and there was an advert for their new soundbar in the paper the other day, which is �1700, for �170 down and �42 over 36 months
I am sure that probably gets lots of people into the brand who might not drop �2k on a soundbar in cash.

When you are asking the price of a car for your product I feel you need to have the finance structure in place for people to pay for it.
After all, most car manufacturers are finance houses these days, the cars are simply tools to help them sell their finance.

If you take a basic Meridian system...

G68
5200 Fronts and rears with a 5200HC
DSW Sub

That is �26,000.

�2,600 deposit
60 x �440 at 5% apr.

I just think with the current price points it would get people into the Meridian brand, I would have no problem committing to a system like that for 5 years, however I would find it pretty hard to not go and buy something else if I was trying to save the �26k.
I have done it before, started saving for a pair of 7200s, half way through I bought a JVC projector and a G61r with a used amp and speakers.
Started again and bought an A6 3.2 Quattro avant as it was at a price that couldn't be turned down and I had the �13000 sitting there, didn't need it really but thought why not.

I can't see me ever building up a Meridian system again, not a new one with the bits I really want, sure I will buy a used G68 or 5200s or whatever, but I couldn't afford to build a new M system quick enough so no point.

This is where the Meridian Premium Partners come in to play to work with their customer and arrange finance if required. This is exactly what I did when I bought my first M system (500, 565, 5000s) I put a depost down, I got a good deal on the price of the kit and a good interest rate to boot.

Regards,
Carl