Is it possible for a high end manufacturer to overprice their goods?

@kokakolia 

Success in the audio bizz seems to come from marketing, marketing, marketing... Just produce something decent and hype it to the max.

The marketing gold standard seems to be those companies that not only effectively market a product themselves, but also create such a buzz that the audiophile community carries the torch to the point where promotion of the product in audio forums and by word-of-mouth seems to take on a life of its own.  Orange fuse anyone?

Regarding furniture;

Or you can custom order a table, spend thousands and wait months.

The Fleetwood Rack System appears to be an awesome equipment rack that would look great in my room but, as cool as it is, I just can't convince myself to pay $$$$$ for something that probably doesn't function any better than my Sound Anchor stand.

@thyname

I enjoyed reading your latest post.

You clearly outlined the way things things are for the prospective customer and I can find nothing to disagree with there.

I think we all would agree that, as you said in your first point:

1) The audio manufacturers are for-profit organizations. Not charities. They will enter a business relationship according to their perception / strategy on how to make a profit, and how to maximize their profit. Basic business decision & marketing strategy.

 

Fair enough.

 

However as @mitch2 points out, there’s more to it than that.

A lot more.

Specifically, as he says "but also create such a buzz that the audiophile community carries the torch to the point where promotion of the product in audio forums and by word-of-mouth seems to take on a life of its own."

It’s this "flavour of the month" / constant overhyping of 'certain products' that tends to cause a real stink and even occasionally bring the entire industry into disrepute.

Magazines, YouTube channels and forums apparently exist in order for reviewers and enthusiasts to share experiences and knowledge with each other.

This is important, particularly in those cases where we can’t easily get to hear potentially interesting products. Therefore we are forced to rely upon the opinions of others.

However, as we see all too often, these channels of communication can all too easily end up being blatantly misused as vehicles for promotion and advertising hype.

Pushing product.

 

What we really need is more honesty and this sometimes comes in short supply, at least it has done in my fairly long experience.

Let’s say for example, if the Revel Salon 2s really are the world’s best loudspeakers, then wouldn’t it be better if all other contenders for the throne be directly compared to them?

[Ditto Harbeth M40s, Wilson Alexandria’s, KEF Blades, Martin Logan’s Magico’s etc]

Direct comparisons, I believe, can tell you an awful lot more than any purely isolated review. You could read /watch 1000s of isolated reviews and learn nothing.

However if a reviewer is telling you why they think that a KEF LS50 is better than a Harbeth P3ESR, you’ll have more to go on.

You might also find it easier to sniff out what might be little more than marketing/ PR hype.

What we really need is more honesty and this sometimes comes in short supply, at least it has done in my fairly long experience.

That cannot happen if honesty cannot be checked. You go to the HIGHLY RATED automotive shop and get RIPPED simply for the reason you know nothing about vehicles. Same thing happens with same kind of "honesty" in audio industry. Many of you, as noted MANY times don’t know about that and try to argue.

How do you check honesty? You will need education. Education is set of useful information that had been established by the GROUP of people within the time that is given to a student or anyone desiring to acquire such information.

Education on basic physics, electronics and electro-magnetics can literally OPEN EYES of those surfing here and asking questions why indeed Audio Industry profits are nearly as good or BETTER as drug cartel.

@thyname

Now I’ll explain the reason why the profits are nearly same:

In case of cartels they take raw supply and bring it to the powder initially with cost of around $100 per kilo and when it gets to consumer it's $100 per gram (hypothetically)

In case of for example Nordost Odin speaker cable, it starts from somwhere $1 per few meters...

in an ideal world, 2 speakers from different brands with similar sound, characteristics, measurements, materials (~+-10%) would be priced similarly. But they aren't. 

If you don't burn 100 dollars bills after you sniffed coke with it, do your research. There is an amazing selection out there, be a numbers guy for a day.

@czarivey :

In case of cartels they take raw supply and bring it to the powder initially with cost of around $100 per kilo and when it gets to consumer it's $100 per gram (hypothetically)

Thank you for explaining the economics of a drug cartel. I personally have no experience with a drug cartel, so I rely on other people with experience in such matters to learn. See.... education!

In case of for example Nordost Odin speaker cable, it starts from somwhere $1 per few meters...

Source? Or you work for Nordost too?

 

@cd318 :

Your concerns are very valid and well founded. Good observations too. My humble advice on how to (try to) remedy the very valid issue you raised:

1) Lot of noise in the internet. You are right. Coming from "innocent" people with a secret agenda, whether from the manufacturers' side, or themselves profit motif. The key is to get to know the people online or personally that you learn to trust, both integrity wise, and from the perspective of matching their taste with your own. This takes years (if not decades) and constant exposure to what goes on in the hobby, user forums and publications / reviewers.

 

2) As many personal contact as possible with people. This includes dealers (I fortunately live in a place with several dealers, brick and mortar), friends you can visit in person, preferably who have a vast experience, great systems, and money, and finally, visiting audio shows any chance you can.

 

3) Most importantly, before purchase, be able to try for yourself, in your home / system. I realize that one would have to start somewhere (i.e. #1 and #2 above), as we cannot possibly try everything out there for ourselves in our homes.