Law Of Diminishing Returns?


I'm curious about what you enthusiasts think of the product or price that eclipses your definition of "value".  

As an example I have a rich buddy that just spent 100K upgrading his (former) Pass 600s / Bryston / B&W Signature 800s / JL Fathom 8 speaker  system. I have a discerning ear and cannot hear the difference between the old system and his new S5M Perlistons (4) , Anthem AVN90, ,ATI amp AT6005 (4) and four subs.

This got me to thinking- 80% more money for maybe 20% more sound quality? 

Where is the sweet spot for the discerning ear and the affluent but not Billionaire (think Doctor/Lawyer/Indian Chief) budget?  Can you get 80% HiFi sound for 20K or do you need to spend 100K to get that HiFi sound?

-Asking for a friend :)

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+1  newbee and the support provided by jjss49.. 

It is a moving point, based on discretionary income.

I'll never be pulled into the diminished returns tango. Refurbished classic vintage  gear gets me close. There is no need to spend a fortune to get great music.. 

@ghdprentice +1 An entirely personal thing. The original post is a perfect case in point. No audible difference between the two mentioned systems?!?! No way! Of course there is, and that difference may be very significant to someone else. No disrespect intended, but we are not always as discerning as we think we are. 

@nonoise post rings so true. I do not have the resources to get to the point of DR, so when I make an investment, it usually is a net, net gain for me. Meaning it is well thought out and researched.

Whenever I see the use of the phrase, the law of diminishing returns, it’s usually in a review and meant to assuage the reader that he need not buy the item under review as it’s really not much better than what he already has or is willing to spend.

Apparently, it doesn’t work.

"is a wagyu ribeye 4x better than a choice ribeye"?

Yes.

Audio equipment?...To me...not so much after you reach a certain level...