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Audio Research discontinuing lower lines components?

I have looked at several components in Audio Research's line and they are discontinuing the LS17-se, PH8, and PH6.  They discontinued the DAC 8.  I know there is a new Ref 6 to replace the Ref 5se and their is a new Ref Phono 3 to replace the Ref Phone 2se coming out.  I talked to my dealer and he stated that Audio Research seems to be making their components look more McIntosh like in the Galeo series. 

The dealer stated their isn't going to be anything that he has heard that will replace the other lines at this point and that AR will be starting at the LS-27, which is $7500 for preamps.  The Ref 75se is the beginning of the line for Amps, which I know, but man are they going the Mac route with prices, nothing to replace the DAC 8 and the other DAC in the line is $11,000, what's up with this, have you guys heard anything more. 

The starting point for AR equipment is getting pretty high and the only way a newer person without means will be able to afford it will be to buy use, which could send the used prices up if there isn't anything else in the line.  What do you guys think and what have you heard?
sid1
oregonpapa's avatar
oregonpapa
4,867 posts
 
jmcgrogan ..

My eyes are open.

I agree "everyone" is doing it (raising prices).  That would include Costco's meat department and audiophile fuses being sold at $120 per pop.  I've pointed it out before ...its called inflation ... or more dollars chasing the same amount of goods and services. Can we expect anything else after paying for a war that cost a trillion dollars, a 700 billion financial sector bailout and another trillion for a stimulus package, all without raising taxes?

What does the term "quantitative easing" mean to you?? If the economic system is flooded with new money without taking old money out of circulation, does that not dilute the worth of every dollar already in existence? If each dollar is reduced in value, doesn't it make sense that it takes more dollars to manufacture, and subsequently to buy the same product year over year?

If we want to see a real price disparity, let's go back to  ARC's first preamp, the SP-3, and compare that price with the price of ARC's flagship at 30K.

Oh, the horrors!
lalitk's avatar
lalitk
5,570 posts
 
ARC's flagship at 30K.....

The manufacturing cost is no more 12K, rest is all middle man and dealer markup.  Look at Nordost Odin, does a loom of wire really cost thousands of dollars?

Do your research, invest your hard earned money wisely!
onhwy61's avatar
onhwy61
5,237 posts
 
I can understand some of the disappointment and anger directed at ARC.  They are not the same company as they used to be.  The new management has clearly moved the company towards being a more luxury brand and wants to charge higher prices then before.  It ain't about inflation!  They want to compete against real expensive components and to do that they feel they have to drop what was their entry level line.  Notice that ARC's parent company is not pursuing this same strategy with Sonus Faber.  Will ARC succeed at higher prices?  Who knows, but if they come up with a slogan "Not your father's Audio Research", then say bye-bye to one of the great audiophile brands.
jafreeman's avatar
jafreeman
689 posts
 
Have to adjust your figures a bit, Oregon. The war’s unpaid cost has been four trillion with another two trillion projected in ongoing commitments to veterans, overseas training forces, drones, etc. They lowered taxes on the wealthy and suggested we go shopping to help out. The stimulus was a bargain for America. The bailout was a crime against Americans.  Go shopping for high-end, my fellow audiophiles.  

taters
1,149 posts
 
Lalitk,

Why would ARC let the dealer make more profit on a reference piece of 30k than they do. The dealers buy at 40 percent of the retail price.
So if the retail is 30k and the dealer get a 40 percent discount after that there cost would be 18k. So on a 30k sale the dealer would make 12k. And then you said ARC produces the piece for 12k. If your numbers are correct the dealer would make twice the profits on the piece than the manufacturer. It doesn't work that way. If the dealer is making 12k on the piece rest assured the manufacturer is making just as much or more. 

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