The new dynamic in speaker pricing


Yesterday I received the latest issue of the Absolute Sound mag. This issue has the round up of the varying speaker manufacturer’s wares along with the retail pricing. One thing that struck me is the number of speaker manufacturer’s who have a speaker in their line up that cost close to a $1M!! There are good number of speakers now available with prices in the $700K+ range. A few manufacturer’s are also a little ’glib’ with their top model pricing, such as Oswalds Mill--who state- price upon inquiry only!

This new speaker pricing dynamic is interesting, as it clearly indicates that there are buyers out there who are happy to pay these prices and presumably enough buyers to make these products viable. A trend that is certainly interesting and yet questionable as to how it will impact the hobby as a whole.

Opinions on this trend?

128x128daveyf

One thing to consider is that these speakers are not made for the masses. They are absolutely made for the 1%. Just with any manufacturer in any category, they invest R&D to make their statement products. This is true in any precision performance category - auto, watches, etc. They are not intended to sell many, which is also why it is priced so high, because there was considerable time spent to develop the product.

The decision to make these types of moves is not to increase the overall median for a price of speakers, but to distinguish the brand from others in terms of innovation and impression. Other brands recognize this, and they follow suit. But most are also smart enough to know that most of their products need to be in a price range that is accessible to a larger population.

Because of this, many of these products are also not designed for the average space, and it will make most people wonder why anyone would ever settle for them. But there are the people who have the money and right gear, people who have the right space, and people who have all of the above to accommodate these ultra-expensive speakers.

Are they worth it? To echo @ghdprentice, that decision is up to the individual.

@blisshifi Some good points. However, historically there have been a number of ultra priced speakers that have come to the market that have really failed to not only catch the consumers attention, but have also failed in their ability to sound better than the far lower priced competition. This leaves the few that dipped into their wallet with a costly boat anchor that is now difficult to move on. As the speaker pricing factors increase, now many over $350K, not only does the value for money equation surface, but also the ’expectation’ level of the consumer. Admitedly  one could argue that at this price level, the consumer is not really that concerned about the above...and as such these points are irrelevant. Interestingly, the few folks that i know that would be able to dip into this price pool are in fact exactly the opposite...they are extremely value conscious! YMMV.

@daveyf I agree with you as well. Just because something should be a statement piece doesn't make it incredible for everyone, or anyone! In that case, it's a failed experiment by the designer/manufacturer, and they will learn the hard way, though they may be able to write off their losses, and maybe that's part of the game as well.

Some people, and I say some, who purchased spkrs costing those figures are people interested in show and not music. God Bless people who buy them for the love of music. Not me. I have other interests that cost money. No dunderhead here.

The pricing in all luxury goods tracks disposable incomes. The disparity between the middle class and the top even 5% of buyers continues to grow. It is no wonder that magazines want a cut from the top instead of the middle.

As an audiophile who has to work for a living I feel being a builder is a great way to learn to enjoy your hobby more and keep your costs firmly on the ground.