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!

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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. 

So here I sit looking into the abyss staring at my Denon AVR 1602 wondering how all of you fell in so deep, My feet are frozen, I cannot take that next step, but now am forced to, I don’t want to think this much,…

My father in law left us his system which is way beyond my pay grade, i broke it down, and put it in a climate controlled storage unit as it is literally a physical challenge to get it into my home. I’m 64 and had a quadruple bypass last year, and the amp alone weighs 287 pounds, 

it’s a Krell 700CX with a Krell Pre amp , digital this, and that, Theta system , The shelving stand he had it on has to be 100lbs + , Legacy speakers, etc

ive seen some receipts for thousand dollar (?) MET ‘cables’ for Christ sake,…

Anyone around upstate NY want to help me with some knowledge on where to go with this, I haven’t found a lot of information to make a decision to keep, or sell to someone who would appreciate it more then us,…

thaks