MSRP, diferentiation and the illusion of value

erik_squires are you suggesting folks use the cost to justify an emotional decision?

@mrklas

Not justify it but to gauge it’s value, so that the value can be placed alongside other wants. If we used Freud’s terms (as commonly translated to English) to allow the superego a moment to check the id’s desire to bankrupt you.

Best,

Erik

Oh man I cant help but wonder the purpose of the OP. It seems to me that someone has too much time on his hands especially considering some of his past posts have had merit. Always go where the id takes you. 

@glupson

Doesn’t it seem that Tekton owners often feel someone is after them, or their speakers? What is up with that? Any mention of Tekton and it flares up.

It’s probably because of many posts from particular forum member whose speaker suggestion seems to default only to Tekton regardless of the audio chain components or what the audiophile is trying to achieve. Likely most of the resistance is from those who don’t believe in a one-size-fits-all.

I heard the Tektons at RMAF. It sounds great for the money maybe even a bargain, but is rather large and appearance may be an acquired taste.

I generally purchase used equipment.   The secondary market allows most components to settle around their intrinsic value.   A Dynaco ST-70 will never sell for the price of a McIntosh MC225, regardless of what a seller may think.   Conditions are not the same in the new item retail market.   Transparency is deliberately avoided because an opaque market benefits sellers more than buyers.   I recall the TAG McLaren group purchased an audio company with an established line of components.  The new owner commissioned new casework  with thick metal faces, substantial metalwork, and shiny connectors.  Looked great, and expensive.  MSRP was 2x the price of the old units made by the company before it was purchased.  Most reviews were favorable, and some were fawning.  Then a reviewer opened up the brand new case and discovered the old component was literally bolted in place, with additional electrical connections to the new casework.  TAG was forced to suspend sales of the model, and later sold off the audio company to another buyer, at a substantial loss.    There was another company that tried to pull roughly the same stunt with a CD player and DAC, until they were exposed.    And companies wonder why buyers are reluctant to pay MSRP ?

Another factor to consider is how the component makes the buyer feel.  There are several examples of buyers choosing to pay higher prices, or believing that a higher price implies better quality, because paying the price gratifies the buyer's ego.   If one takes a few min for a web search, one can find reports from audio industry execs regarding the practice of raising prices, and repositioning the marketing of the line, then seeing sales volume increase because the perception of the line is now "better".  The key to realize is nothing affecting sonic quality of the line was changed !  Only the price and marketing strategy !     I see this trend in other consumer spending areas.   Wristwatches are a prime example.  There are just a few OEM watch companies that make watch movements for most of the brands sold today.  One can purchase 2 watches, 1 for $x and another for 2x the price of the first-  and they will have the exact same movement inside !  Only difference is the case, and how the watch is perceived in the market !    Automobiles are a great example of brand management affecting price.  A VW Touareg has the same engine, transmission and basic chassis as the Porsche Cayenne and Audi Q5/Q7, but had a substantially lower MSRP.  It was made on the same assembly line as the other cars, but was sold with a lower level of accessory refinement.  Mechanically it is the same car.   But try telling that to someone who paid a dealer for the Porsche or Audi !   We have a Touareg, and use an independent German Car specialist for service.  I asked the owner about differences in service requirements and repairs across the 3 models I referenced.  He said basic replacement parts and service requirements are the same and part numbers are interchangeable.  He also said he is able to charge more for some services, because Audi and especially Porsche owners expect to pay more than a VW owner for service and repair.   Perception vs intrinsic value.