Why Is Hi Fi Gear So Darn Expensive?

Well about the only way to actually reduce prices is to cut out the middle man.  Also known as your local brick and mortar dealer.  As we all know many brands have gone that route to be more competitive in the marketplace.

But then we are left with that type of shopping experience and support etc.

It is really expensive operating both a manufacturing business and a retail shop these days folks, especially in locations where the $ and potential sales are - big cities.

As a business owner, I am not surprised at all with much of the pricing.  The real question is do enough people feel there is enough of a ROI.  At some price point one would think a buyer would want to experience the product, at least a little, before dropping big $ on a piece....but maybe not.

...Because there are stupid people with stupid money.  It's as simple as that.

I think you could ask this question in many different industries. Why is this kitchen faucet $5000 and this one $500 or this one $100. Why is this shirt $1200 and this one $200 and this one $20? There is generally a curve on actually quality, materials and style but at a certain point it’s really just about whether you want to spend the money or not. Some companies pride themselves on being handmade. Some just survive under the umbrella of their brand. Is Louis Vuitton’s leather really that much better? There will always be insanely expensive and probably overpriced pieces of gear because there can be and people will pay. 

P.T. Barnum was right.  "There's a sucker born every minute."

You can build the Linkwitz LX521 system for as little as $6000, and it will stand up against the $50,000+ systems all day.  You could easily drop $100,000 and more and get sound not as good as the LX521.   If you haven't got the courage to do the project yourself, there is a company that will sell you the full system, fully built and ready to run, at about $20,000.

This is a full system that includes amplification because it is multiamplified and uses an active crossover.

The LX521 is not hard to build.  Madisound sells flat pack kits, and there's nothing to stop you from having a local cabinet maker do up a custom set for you at a reasonable price.  Any competent cabinet maker could knock them out in a day or so.

More than any other hobby I can think of, audiophiles seem to associate quality with seemingly outlandish prices.  I don't deny there is a general relationship between price and quality, but it is inconsistent and certainly way out of proportion at times.  

I also truly believe many (but certainly not all) vendors take advantage of this fact and as a result make the hobby very confusing.  I know Ohm has been mentioned by several in this thread and I absolutely put them in the category of providing good value and not taking advantage of this trend, so good on them as well as other vendors who provide tremendous value.