Modern Linestages

Thank you Grannyring for your post on 8-27 where you go through some of the cost of running a company and developing upper end products.

Our Purity Audio Design linestage was reviewed in that same Absolute Sound issue as the Constellation pieces. While this was not an inexpensive linestage, we have other models above this.

We have spent the last several years developing this line and this kind of R&D is not even close to being cheap. Overhead of running such a company is is not small and you still have to pay the bills even during the R&D stages.

Bottom line is that it is still a business. The price of products is based on many things (not only the cost of parts used) and since you did such a good job of going through most of them in your post, it will save space in this post.

I still don't understand those who do not think companies should make any profit. I'm sure they don't go to work everyday and work for free.

It is a miracle that NAD was able to recoup all their R&D costs with a $220 integrated amplifier - I guess selling a million units helped on the profit front.

Pubul57

I think you do know the answer for NAD. Small margin, but very high volume over many years. Just a different business model and marketing strategy. Bet NAD sold/sells more units then the Constellation preamp in one day part.

In addition the technology used in that one integrated was also used in many other NAD pieces of high volume. NAD sells many items in their total line so the costs of R&D are also spread out over many products - many high volume products.

Both models can work, but close managing of costs is paramount in both models.

Hi,

Response34, I don`t recall a single post during this thread where anyone said or even suggested a company should`nt make a profit. There`s been in fact quite a few here(myself included) who openly support capitalism and free market principles.

Some of us have question the "uber" high prices of some components in terms of price/value, but realize that`s clearly up to the buying public to make that call, as it should be.

Refreshingly this thread so far has been free of the socialist-like view that all these high end companies want to do is charge "unfair" prices and ripoff the helpless consumer.
Best Regards,

Charles1dad, I think it would be a communist who would say that capitalists are ripping off the consumers. Socialists merely want to use government to counter extreme capitalism and to provide services.

Under capitalism the buyer is expected to seek quality at the lowest cost. This may include pressing the dealer for the very lowest price. Similarly there is no such thing as an uber price. Rather there will be a high price that no one or few will pay and the manufacturer will either lower the price or cease production.