Why Is Hi Fi Gear So Darn Expensive?


Why Is Hi-Fi Gear So Darn Expensive?! - The Absolute Sound

Interesting read.

"I recently heard a small 2-way stand mount speaker at a show. The sound was excellent. The product was priced at $50,000 or thereabouts, per pair. Allowing for distribution and marketing leaves about $25,000."

$25000 for distribution and marketing? Really? That much more for this than a similar product at 1/10th the cost?

I don’t doubt the marketing cost per unit could be much higher with boutique products. Makes sense. Is the cat is out of the bag regarding the value proposition of boutique products?

How about fancy fuses marketed for free here that cost practically nothing to ship? Oh my!

I guess there are "excellent" expensive boutique products and others that offer value everywhere. Hifi not unique. Take your pick! Live and learn!

The article also chalks up people’s reactions to high-fi prices to emotion. What about the sound they hear? Real or emotionally distorted? What would Mr. Spock think about that? I know he likes music...he plays a harp!

128x128mapman

I was just in Vienna and bought a Carl Bucherer Scubatec Patravi. 

Carl Bucherer Scubatec

With discount and a tax refund (Austria policy for foreigners buying goods) I paid about $4500 on a watch that lists for $5,200 before taxes. Did I get a deal? No, not really. The things that go into the price of a watch besides parts include R+D, advertising, and building prestige such as paying Keanu Reeves to wear one in the latest John Wick movie. 

It amounts to this; https://www.wpdiamonds.com/swiss-watches-expensive/#3

To reiterate my luxury watch analogy;

1) Parts    5-15%
2) Assembly 10%
3) R&D          10%
4) Marketing 10%
5) Profit margin for manufacturer 5-10%
6) Distribution and margin for retailer 45-60%

tomrk, I love it when you or anyone, for that matter talk about the 1960s through the 1980s. Don't forget about the early 1990s when some audio gear improved quite a bit like amplifiers. Good deal!

There are two things in play, expense and value.    Sometimes products are mediocre and insanely priced .  Sometimes a product may seem expensive but it's value is off the chart.   I try to seek out the latter.