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!

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There are two standard ways of pricing: First, the market: basically compare your product with the available on performance and aesthetics, then to price accordingly. The second is cost plus… basically all costs plus the profit you require. If what you want to manufacture has the market price less than the cost plus price… you should not produce it… you lose money.

As a consumer you have a choice. Buy it or don’t. So the market of consumers will determine if the speakers you are talking about are worth it. There are a few people out there with lots of money with no sense, but this is the exception, not the rule. Folks that have made a lot of money typically have worked for it by being perceptive, educated, smart and not wasting money. So, if these speakers are successful. There is probably something to them.

Most audiophiles aren’t so wealthy that price is no object. We envision ourselves with something better but we must consider the costs. Those who fall into a petty bourgeoisie class structure can be the most vulnerable. It’s definitely a strange dichotomy. I do however believe that some products deserve their market value based on the quality, craftsmanship, time and costs invested. I also believe that most companies want to maximize their dividends and will charge whatever they think they can get. Power to the savvy who can find high quality products for down to earth prices.