Why Is Hi Fi Gear So Darn Expensive?


Why Is Hi-Fi Gear So Darn Expensive?! - The Absolute Sound

Interesting read.

"I recently heard a small 2-way stand mount speaker at a show. The sound was excellent. The product was priced at $50,000 or thereabouts, per pair. Allowing for distribution and marketing leaves about $25,000."

$25000 for distribution and marketing? Really? That much more for this than a similar product at 1/10th the cost?

I don’t doubt the marketing cost per unit could be much higher with boutique products. Makes sense. Is the cat is out of the bag regarding the value proposition of boutique products?

How about fancy fuses marketed for free here that cost practically nothing to ship? Oh my!

I guess there are "excellent" expensive boutique products and others that offer value everywhere. Hifi not unique. Take your pick! Live and learn!

The article also chalks up people’s reactions to high-fi prices to emotion. What about the sound they hear? Real or emotionally distorted? What would Mr. Spock think about that? I know he likes music...he plays a harp!

128x128mapman

Well I can’t agree with the nothing has changed perspective. Technology and its application has improved immensely and continues to do so. That does make a big difference.  Old stuff has less and less appeal to me these days I find. It can be done much better for less these days. Digital in particular. Analog….that’s different …. niche high end. New vinyl has managed to lure more customers in recent years.

 

@thyname 

The beauty of simplicity. Excellent

@ghdprentice 

Many years back on Audio Asylum, there was a thread about the cars audiophiles drive. Most were transportation and little more. None were new.

@gdnrbob 

Good post.  I always came in at the upper 1/3 of the prices and generally told my perspective customers that I would be in the upper third price wise. But I always went the extra mile with service and the expertise to give a quality product. I always laughed at those who told me how "busy" they stayed. Staying busy is easy.I stay busy now even though I am retired.

I drive a truck and have a German Integrated. Go figure.

I also love being the most expensive in my industry. 

@mapman 
We are talking about hi-fi pricing per your original post. No one here is talking about advances in technology. It’s a given that we are moving forward, thank God. 

I’ve been looking at speakers lately and noticed the grilles for Magico speakers cost $850 or something.  The grilles!  There is nothing fancy or special to make them cost that much.  This is just one of many, many examples.

On one hand it seems like manufacturers are taking the piss.  But on the other hand, wouldn’t that leave an opening in the market for some upstart to go for massive volume sales at lower margins, by creating top performing gear at a fraction of the cost?