"Is it possible for a high end manufacturer to overprice their goods?"
Is it possible for a high end manufacturer to overprice their goods?
Having just read the interesting and hyperbole laden review by RH of the new Rockport Orion speakers in the latest issue of The Absolute Sound, one thing struck me..
is it possible in the high end for a manufacturer to overprice their product ( doesn’t have to be a speaker, but this example comes to mind)? I ask this, as the Orion is priced at $133k! Yes,a price that would probably make 99% of hobbyists squirm. Yet, the speaker now joins a number of competitors that are in the $100k realm.
To that, this particular speaker stands just 50.3” tall and is just 14.3” wide…with one 13” woofer, one 7” midrange and a 1.25” beryllium dome ( which these days is nothing special at all…and could potentially lead to the nasties of beryllium bite).
The question is…given this speakers design and parts, which may or may not be SOTA, is it possible that this is just another overpriced product that will not sell, or is it like others, correctly priced for its target market? Thoughts…
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@jl35 That business model is common. Question is whether a product in this hobby can be so high priced, that the result is zero sales? Or,not enough sales to justify the product and its cost to come to market? |
I think long standing, big time companies like Rockport are well aware of the sales dynamic, not that they always guess correctly...and for some, it's almost an advertising statement product, not one they actually expect to sell many of...questions of "value" become irrelevant with so many super wealthy potential customers...I like seeing these products, though with no expectation of ever hearing one... |
The fact that speakers are priced like that only adds to arguments against the value systems we have allowed to get set up. Someone is buying a $133k speaker while someone else is living in a cardboard box. A quote from Pope Francis: "Today consumerism determines what is important. Consuming relationships, consuming friendships, consuming religions, consuming, consuming... . Whatever the cost or consequences. A consumption which does not favor bonding, a consumption which has little to do with human relationships. Social bonds are a mere 'means' for the satisfaction of 'my needs.' The important thing is no longer our neighbor, with his or her familiar face, story and personality. "The result is a culture which discards everything that is no longer 'useful' or 'satisfying' for the tastes of the consumer. We have turned our society into a huge multicultural showcase tied only to the tastes of certain 'consumers', while so many others only 'eat the crumbs which fall from their masters’ table'. This causes great harm. I would say that at the root of so many contemporary situations is a kind of impoverishment born of a widespread and radical sense of loneliness. ... Loneliness with fear of commitment in a limitless effort to feel recognized." -- Address to bishops at St. Charles Borromeo Seminary, Philadelphia, Sept. 28, 2015 |
From what I read Rockport really put a lot of work into the cabinet, and my guess is a lot of the speaker’s cost lies there. That said, it’s a competitive market even at this level and Rockport will find out rather quickly if they overpriced it. Rockport’s been around the block before and I’d be surprised if they overpriced the Orion, but whether customers hear something they deem worth that price relative what else is out there in the same price range — that’s the bigger question. We’ll see. |
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