For a pair of $25,000 avalons, this is my estimate:
Components (electronics and cabinets)(at manufacturers cost): 10%
Labor: 10%
R&D: 10%
Marketing & overhead: 10%
Dealer margin" 40%
EBITDA margin: 20%
Very depressing: $2,500 worth of components gets you a $25,000 avalon speaker (of course, I would not dream of buying this speaker new at MSRP, but that is a different issue).
Now my Salk center channel is build to the same standards (if not better), and use the same quality components.
Because of lower overhead, factory direct sales, and probably lower margin, I estimate this $3000 speaker has about $1000 worth of components in it. A much more interesting value proposition!
Components (electronics and cabinets)(at manufacturers cost): 10%
Labor: 10%
R&D: 10%
Marketing & overhead: 10%
Dealer margin" 40%
EBITDA margin: 20%
Very depressing: $2,500 worth of components gets you a $25,000 avalon speaker (of course, I would not dream of buying this speaker new at MSRP, but that is a different issue).
Now my Salk center channel is build to the same standards (if not better), and use the same quality components.
Because of lower overhead, factory direct sales, and probably lower margin, I estimate this $3000 speaker has about $1000 worth of components in it. A much more interesting value proposition!