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Why are so many companies like harbeth making old speakers designs and charging thousends?

Hi everyone I am a little confused about the speaker market. I had been two dealers that sell totally different products. The one I had been to which I bought my forests from sells Totem And Monitor Audio and B&W. though I went to the other that sells Harbeth And audio note speakers which they recommended me buying. And the problem I have trouble understanding Is when I spend thousands on a speaker. Especially my next big purchase. That has no real new technology and is the size of my dads old conerwalls and never use to cost Thousands to build. With no technological advancements. to a product such as the totem that is small compact and modern for the wife approval , and to be more exact. The new Element line and technologically advanced like the torrent driver. Which I can get the same speaker as the same cost or less of the audio note and Harbeth and dose not need to take up the whole room or look like the 70's. Whats your opinion? Would you buy a product that is a 30 year old design that costs 5 times as more with the only diffinceses as upgraded silver wire and upgraded crossover components. To a thousand dollar woofer that is machined not stamped and has so much magnetic flux that it ca lift a car and no crossover?
128x128jakecanada
paraneer's avatar
paraneer
818 posts
 
Why are so many companies like harbeth making old speakers designs and charging thousends?

They charge what they can that will allow them to make a profit to stay in business. In other words, after overhead is covered, the product is priced according to the old Latin adage - what the market will bear. So the profit margin is irrelevant. If Harbeth, regardless of design and materials used, overpriced their speakers they would not sell. Then Harbeth has to do one of three things...
*reduce the price of their speaker and reduce margin.
* reduce the price of the speakers and maintain margin that would involve having them built overseas.
* Or go out of business.

Since Harbeth is still in business, making their product with higher labor cost in the UK, and selling speakers, I would say they are priced just right in the market. Someone is buying them. But the good news is, no one is forcing you to.

Its just simple free market capitalism.
ehtoo's avatar
ehtoo
20 posts
 
Everything, and I mean everything in the Audio world is based on old designs. As far as the cost of equipment (or everything else for that matter), we live in a world of two income earners. A coffee cost a dime in the 50's/60's. As a kid, I could buy two comic books and a handful of candy for 25 cents. Add the cost of manufacture and exchange rates for the Harbeth also reflect the quality of construction as well as the preceding comments.


uncledemp
779 posts
 
I agree with Paraneer, pricing as to what the market will bear is pretty common. Then do your best to increase efficiencies, reduce scrap, buy better, sell more, etc.

Regarding retooling and equipment as expense, I agree with the initial spend- but one would hopefully realize improvements in efficiencies as result. 

I can see where it would be a competitive business. Especially  if you depend on distributors to educate customers and sell the value of the product vs price- assuming the product can be differentiated and has unique value.
nonoise's avatar
nonoise
10,885 posts
 
If P.T. Barnum were alive, he'd ditch the circus and go into high priced audio.



paraneer's avatar
paraneer
818 posts
 
If P.T. Barnum were alive, he'd ditch the circus and go into high priced audio.

Today I would advise PT to steer clear of both.  Activists will not allow circus animals anymore and just take a look at the "Whats going on in the audio market" thread in the Misc Audio sub forum.  Both are bad bets to make some fast cash. 

Now selling vintage audio on Ebay is where its at!  Just take a look at the below.  Wouldn't be surprised if this ad was posted by PT himself!

http://www.ebay.com/itm/SHURE-V15VX-MR-CLASSIC-CART-AND-GENUINE-SHURE-VN57MR-STYLUS-IN-CASE/182150001947?_trksid=p2141725.c100338.m3726&_trkparms=aid%3D222007%26algo%3DSIC.MBE%26ao%3D1%26asc%3D20150313114020%26meid%3Ddee9cab05e9845af940abf661fea3029%26pid%3D100338%26rk%3D18%26rkt%3D24%26sd%3D351723090580
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