WILSON AUDIO/ cost vs. value


wilson ad; absolute sound;issue 162. page 12.... dave wilson states in his ad that wilson loudspeakers have one of the [ lowest ] profit margins in the industry. My question is should wilson make public their profit margin percentage's to back up their claims or is this more hyperbole from a high-end audio manufacturer...
aolmrd1241
I agree with you, people will pay 125k for speakers; they also pay that much for a wrist watches.

If you simply go on a cost to cost ratio, sure, the Mercedes makes more sense.

But we are talking about loudspeakers, and I believe there a more speakers over the 100k barrier than the x-2. Why aren’t we talking about them?

S-class Mercedes is to automobiles as Wilson x-2's is to audio?

That comparison isn’t even close!!!! There are cars that cost several times 125k, so Mercedes is actually an average priced luxury car; the x-2 is the king of the hill.

So to say that my argument is illogical is fine, but to look at it the way you are looking at is also illogical.

In the end, despite my argument I will never purchase a pair of x-2's unless a miracle occurs in my bank account, but i still respect Dave Wilson's products and the prices he chooses to sell them.
Holenneck -
I chose to use Wilson speakers in my analogy for two reasons.
First - I believe they are the highest profile offender although you are right about there being others. Secondly, Wilson is the topic of this thread.
You say there are cars that are more expensive than $125,000 and that makes my analogy "not even close". Illogical again.
The topic was prestige or pride of ownership or status. Mercedes wrote the book on that topic. Walk out your front door and start asking people what they think of when you say Wilson. Then try the same thing with Mercedes. This is where "not even close" will show up.
Not many people know that you can spend 125k on a pair of speakers. Plenty of people know and readly accept spending that kind of money on a car. Buying a 125k car is like buying a Watt Puppy 8 at 25k, buying a pair of x-2's is like buying a ferrari or some other super expensive car i dont know about.

I understand you will again disagree with me, i accept that you will do so, but the x-2 is a specialty speaker, mercedes are an everyday car, even the really expensive ones......
"I believe they are the highest profile offender", Offender!! Offender of what? They design and manufacture speakers, that sell to persons that can afford it and these people buy it, they want it, or they would not build them, they are creating and meeting a demand and as far as I can see, the only people that take offence to that are the ones that can't afford it.
I think Holenneck might be hinting that a $100k Mercedes is more like a $10k speaker, and that a $125+ speaker is more like a $400k+ (or 1mil) car (especially a hand-built, custom model). Maybe I'm way off base on that one.

As for the original topic at hand, I agree the ad copy is targeting naive readers who some of who probably feel Wilson is charging exhorbant prices. "Gee I guess they're a good value after all!" I don't get a sense that it was aimed at enlightened audionuts, like us. Although I am happy that Wilson makes enough money to consistently take out full page ads in Stereophile, thus helping to subsidize the magazine and maintain my $1/copy subscription.

My take on it is this. Wilson is a successful business man. He knows his client base, and has carved out a successful niche (niches?) while resisting market erosion. I applaud him for that. He's obviously doing well. Would I buy his product? Not unless I had a lot more disposable income (or a lot more income period). The value just isn't there for me. Although he does have a good performing product.

Audiophools like me will need to make their own economic decisions. If the wilson product appeals to their tastes, and it economically doable within the household budget, then it's a good value. But that's a value that has nothing to do with Wilson's costs - publicised or not. The value is only compared against the final retail selling price. It doesn't matter to me if there is $27k profit, $1k profit, or a $2k loss with each set of WP8 sold ($28k retail). Well, the loss or the razor profit might worry me if I was concerned about the company's viability for long term warranty repairs or service. But that's Wilson's problem. And I take that into account when I do my own "value" calculation.

Truth be told, if I had more bucks than time, I'd just get a turn-key solution from a dealer (maybe a Wilson dealer), pay the bucks, and enjoy my stereo. Perhaps that is the value that Wilson is generating.