THE LITTLE BLACK BOX, 399.00 ABSOLUTLY NUTS


I need a little black XLR junction box for a famous turntable......Two XLR jacks and a 4 pin jack 399.00 please....What is going on here, you can buy a whole amplifier for that ??   I offered a dealer  200.00 for one and he laughed at me......Are  we the buyers going crazy paying that ????
autospec

@autospec  Testpilot:   Help me with this "OP" ??

OP = original poster, that would be you.



Testpilot:   My pre-amp is a Atma Sphere MP-1 ........Ralph at Atma Sphere is doing some work on it, it is soon to be returned.......One of my friends has shamed  me into buying one of those "Black" boxes today.........But I really need two of them, so I will build one.....Will
I have worked at many different kinds of companies, including textbooks, religious books and periodicals, computers, home audio, shoes, and others.

The uniform rule of thumb for calculating retail price is to multiply the cost of manufacture (parts and labor) times four. If a textbook costs $12.50 to print, its retail price will be $50. A $400 stereo receiver in 1972 cost $100 to make.

This pricing is not based on greed, but on reality. The total cost to build a product is not just parts and labor; there is also documentation, income tax, rent or mortgage payment, utility bills, insurance, property taxes, packaging, shipping, distribution, and advertising.

Sure, if you're a lone guy with a day job banging out junction boxes in your garage when you get home, your cost per unit is much lower. It explains why I have an all-tube handwired PTP phono preamp available for a little over $1K. But as soon as you scale up and turn it into a self-sustaining enterprise, the true cost of manufacture goes way up.

Henry Kloss almost brought down his entire Advent Company, which made the most popular enthusiast audio speakers at the time, because he under-priced his Advent VideoBeam big screen TV. He had to bring in a financial expert to save the company. The first thing the guy did was double the price of the VideoBeam from $2500 to $5000.
Johnnyb53:   The point to be made is that if you keep your parts business in house, then you can cut the price almost in half......Audio dealers don't want to stock things so everything you need has to be ordered and shipped......And if its a complicated item , sometimes you get the wrong thing altogether....There was a time when you could call VPI and get a part shipped the next day or two, then the new management took over and most of them didn't even know what you were talking about, so you got the wrong price and then the wrong part.....So instead of training a PR person and parts person they just passed it on to the dealers....Another parts mark-up, another week waiting.......No service......The one thing that the competition can't take from you is service and public relations...............Harry had it !!