David12,
There are a few issues that generally IME contribute to this situation.
First, usually the retail price has to bear a cut for distribution and retailers. Even when the product is sold direct, if the product is also sold through dealers then the price must accomodate this. Most sales are time consuming on the part of the salesman and require overhead for the context under which the sale is made. In this business the volume of sales is often small.
Second, we live in a culture that is inundated with products that are manufactured by the millions in countries where the hourly wage is often minus a zero or two from ours. The product(s) that we're talking about here are painstakingly hand made in quantities of 10 or so at a time.
In Lloyd's case he uses premium parts that are sometimes not generally available and are very expensive compared to the average commercial product. An example of this would be using nude Vishay S102 resistors at about $15 a piece give or take depending on the value as opposed to the usual "good" resisors that may cost 20 cents.
The R&D that goes into discovering what makes a valuable subjective difference and then refining that product to where it makes the most difference in its application is extremely time consuming. The only way those hours can begin to get paid for in the quantities we're talking about is by charging seeemingly high prices.
The other factor that can come into it is valuing the product in relation to other similar products and in relation to the value of the effect it has on the sound. Percieved value is often related to the price put on it. Often the premium models in a line are priced to try to make back some of the above expense whereas the cheaper models are priced more competitively.
Some companies underprice their products in order to be competitive and their businesses flounder in the end. Some manufacturers demand a more respectable living from their endeavors.
There is a fine line between fair and opportunism. That line is purely subjective.
Hopefully this will allow for a reduction in your meds.
There are a few issues that generally IME contribute to this situation.
First, usually the retail price has to bear a cut for distribution and retailers. Even when the product is sold direct, if the product is also sold through dealers then the price must accomodate this. Most sales are time consuming on the part of the salesman and require overhead for the context under which the sale is made. In this business the volume of sales is often small.
Second, we live in a culture that is inundated with products that are manufactured by the millions in countries where the hourly wage is often minus a zero or two from ours. The product(s) that we're talking about here are painstakingly hand made in quantities of 10 or so at a time.
In Lloyd's case he uses premium parts that are sometimes not generally available and are very expensive compared to the average commercial product. An example of this would be using nude Vishay S102 resistors at about $15 a piece give or take depending on the value as opposed to the usual "good" resisors that may cost 20 cents.
The R&D that goes into discovering what makes a valuable subjective difference and then refining that product to where it makes the most difference in its application is extremely time consuming. The only way those hours can begin to get paid for in the quantities we're talking about is by charging seeemingly high prices.
The other factor that can come into it is valuing the product in relation to other similar products and in relation to the value of the effect it has on the sound. Percieved value is often related to the price put on it. Often the premium models in a line are priced to try to make back some of the above expense whereas the cheaper models are priced more competitively.
Some companies underprice their products in order to be competitive and their businesses flounder in the end. Some manufacturers demand a more respectable living from their endeavors.
There is a fine line between fair and opportunism. That line is purely subjective.
Hopefully this will allow for a reduction in your meds.