Why Is Hi Fi Gear So Darn Expensive?

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

In 1912 Edison sent his salesman out across the country to pedal his new disc phonograph.  The price was up to $250.  That’s about $40,000 today- for a record player.  But things got better.  In 1968 a Marantz Model 18 stereo receiver cost $695.  That’s about $5700 today for a 40 W/ch receiver.  I remember my dad buying our first color tv in 1968.  A 25” Philco I recall it costing about $450 or almost $4000 in today’s money.  That was big money back then.  No vacations for a couple of years. 
Stereo receivers and TV’s are much cheaper and more commonly found these days but were once considered hi end luxury. We lament the high prices of luxury but historically that is how it has always been.  Same as it ever was, as they say.