What makes an expensive speaker expensive


When one plunks down $10,000 $50,000 and more for a speaker you’re paying for awesome sound, perhaps an elegant or outlandish style, some prestige ... but what makes the price what it is?

Are the materials in a $95,000 set of speakers really that expensive? Or are you paying a designer who has determined he can make more by selling a few at a really high price as compared to a lot at a low price?

And at what point do you stop using price as a gauge to the quality? Would you be surprised to see $30,000 speakers "outperform" $150,000 speakers?

Too much time on my hands today I guess.
128x128jimspov

 I agree with many of the above comments, but would add there are ways around exorbitant pricing, buying second hand, being the most obvious. Speakers seem ideal for used purchase, like cables. They naturally should have a longer life than electronics, with fewer bits to fail. I have had speakers that have worked perfectly well for over thirty years, passed on to family members.

 Secondly you must understand the implications of a very small niche market. As others have said, fewer sales mean fewer units to bear the fixed costs of the company, R&D, marketing, Accounts etc.

 Thirdly and most importantly, is just where does the seller spend his money. I had a long conversation with a small speaker manufacturer a few years ago, who shall be nameless. He estimated the building and parts costs of a large manufacturer, like say Wilson, as 25% of the total. So an $80000 pair of speakers costs about $20000 to build, which shocked me. Where does the rest go, Dealer and Distributor margins, Plant rent, heating, lighting etc, and so on. A very large part goes on Marketing evidently.

 Now take a small one man operation, selling direct. Most of those costs are gone. No dealers, distributors, minimal marketing, just word of mouth and show attendance. The problem, well no massive R&D budget, so he is going to need very good ears to voice the speakers, with no complex, expensive machinery to do the job for him. If he has got good ears and I would say there are a lot of small manufacturers out there who seem to, then everyone can be a winner.

I just got rid of a $4000 speakers, and replaced them with a $200 speakers. I liked the $200 one better.
Agreed-
Pioneer did have the best Plasma set in the marketplace. Damn shame they gave it away...
I just peeked at the speaker page at higherfi.com.   They listed 27 different models with a six figure MSRP (tho most were offered at significant discounts).  One model has a seven figure price tag.  I'd invite anyone interested to peruse them and figure out how/if they justify their price tags.  While you're pondering that, look at the variety of designs and you'll start to get a sense of how different they're likely to sound - one vs the next.

I can't say that I reached any hard conclusions, but I definitely found it an interesting exercise.