WILSON AUDIO/ cost vs. value

It would have been nice for the Wilson owners on this thread to voice their opinion on the subject of cost vs value, as they are the people who rightly deciede this issue, as they keep Dave Wilson and his team in business.

There has been a lot of derogatory comments on this thread by people who do not, have not and will not own Wilson products.

I can only assume the Wilson owners are blissfully unaware of this thread as they sit in front of their "WILSON" speakers enjoying what they were meant to do. I find it amazing that there is not more Wilson trumpting here, it indicates to me that Wilson owners do not have to prove to the world or the audio community that there product is good, better or best.

Henryhk...thanks for the comment, it really sums it well.

Be true to your ears and enjoy the music

Whether or not someone or many people like their speakers does not address the topic of this thread. I'm glad that they are happy and enjoy pride of ownership. That's nice. Nice.
The matter up for discussion has to do with Mr Wilson's public claim that his company operates with a smaller profit margin than most other manufacturers. Because I have some experience on the inside of this game, I see a likelihood that his claim is bogus.
Typically speaker manufacturers who sell through a dealer network price the finished product at about 5 times the actual cost to manufacture and package the goods for delivery. Back office expenses are not included in the base figure for this calculation and neither is advertising or insurance.
Knowing this we will take the model for our conversation to be the $30,000 pair of speakers. If his markup is normal, then he would have $6000 involved in the parts and labor for one, uno (1) pair of speakers. Is this even imaginable? Now consider the model around a $125,000 pair and picture $25,000 in parts and labor for a single pair of speakers. Did you know that you can have someone build you an oversized two car garage with automatic door opener and insulation and sheetrock on a concrete pad for about that much money? I wonder if that could be as labor intensive as a pair of speakers.
I'm not jealous, I'm incredulous. I don't care if we're talking about Wilson or Goldmund or Sigmund or Freud. Dave Wilson is the one who opened this can of worms and aolmrd 1241 asked the question. I think his query is reasonable and I'm amazed that so many of you behave as if you are being personally attacked.
And remember that the numbers I used are for industry standard pricing. If Dave is to be believed, his costs are even higher than those I posited.
If you take the $30,000 model and parse the take, your dealer gets 40 points or $12,000 for selling the speakers at reatail. He may (probably will) discount them but that comes out of his share. Wilson is unaffected. Ole Dave gets the remaining $18,000 from which we deduct the original $6000 cost of production. That leaves $12,000 to pay the front office and the rest of the enumerated costs. Suppose he sells 20 pairs of this model ( probably a very conservative estimate) per month. WOW. That's $240,000. WOW.
What about the $125,000 speaker pair? Well, as the model stands, that speaker generates $50,000 in profit for the dealer and for Wilson. That's per pair. We have to guess that there are few pairs of these sold and that one a month would be an exaggeration. So anyway I believe that Wilson is showing a gross profit on the order of a half a million per month. Good for him. That's the old American success story in a nutshell. He's been at this for nearly 30 years and he's pulled it off as well as Polk or Bose or Infinity. Maybe better.
The only problem arises when he comes to us and asks us to believe he's taking a beating. It just isn't believable.

hello- macrojack; I see you understand the heart of the question as opposed to name brand loyality, thanks for the reasonable imput concerning cost vs. value as was the intention of the thread...

Macrojack...

Thank you for the economics lesson again.

The original question was

"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..."

My answers are No they should not make public their profit margin percentage's...and yes it is just more hyperbole....it seems to be the way of advertising today...make any claims you want with out any back up

Mr Wilson has been critized for trying to lead us to believe, without supplying enough information, why do you feel your Typical model applies here without knowing anything about how his company is structured?

Here is an example of excess Cost vs. Value that supports your profit model

Radio Shack speaker wire has been rated as a best buy at 19.99 per 100' roll or $0.1999 per foot.
Zu Cable (I use this because of the previous refferences on this thread, and also because they include price on their website) sells speaker cable at 23.93 (their cheapest) per foot. That is a difference of $23.73 per foot "WOW"
I know that this is wrong, I do not have enough information so it is just supposition. Which is what the context of this post was about.

Question to Macrojack: Does the 1/5 of MSRP refer to COGS alone? What exactly is included? Before we can declare that his margin is 67% (12k/18K), we need to consider such costs as warranty expense, shipping (not trivial on Wilson speakers), sales and marketing as well as other G&A expenses. When it gets to profit that falls to the bottom line and accrues to the owners, I expect it's a much smaller number than $12K per WATT/Puppy.