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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…

128x128daveyf
redlenses03
95 posts
 

The manufacturing process of the Rockport enclosures are pretty insane compared to many and if you're not familiar with their design, research it.

Although at this upper end, there are many which are impressive for sure (engineering/manufacturing).  Whether or not that equates six figure prices isn't my point, just that these aren't some MDF boxes slapped together.  Also I believe they now manufacture their own drivers (not 100% sure though).  Not many that do (Dynaudio, Focal etc..), which just adds to the overall R+D costs.

kota1
2,706 posts
 

Is it possible for a high end manufacturer to overprice their goods?

If it is true "high end", no, their market buys overpriced jets and yachts so an amp is no BFD.

Now, is it possible for cheesy amps to be priced to high? It gets me sick just thinking about it because the only thing "high end" about those products is often the name.

sgreg1
612 posts
 

I would look at this from the other direction. Will consumers over pay for what they perceive to be top quality? This hobby is notorious for consumers who think quality comes with a high price tag. IMO as the price goes up so does diminishing return. There is a spot where double the price is double the quality. Then once you jump the shark you can pay out double for only 5% to 10% bump in quality. Some people have the money and how they spend it is no concern to me. We hear from people all the time chasing down that last 1% they are trying to find.

noromance's avatar
noromance
9,862 posts
 

They’re servicing the nouveau riche. Why have to entertain hundreds or thousands of whining customers and complex distribution networks with tight margins when you can sell to a select few and make a killing?

tablejockey
3,923 posts
 

I've seen dealer price lists from "high end audio" manufacturers.

Particular segments have REALLY high markup, that doesn't seem to faze customers.

 Also have been exposed to the wholesale end of other high end consumer products. Nothing shocking comparing "high end audio" to other luxury products.

Consumers with wide wallets will pay.

 

 

 

 

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