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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remember too, we are looking at worldwide sales, and Rockport has a significant presence in Asia and elsewhere..,.probably most won't be sold in USA...and again, we are discussing their second most expensive speaker, and many companies make much more expensive ones...so Yeah, how do they sound...seems no one commenting has ever actually heard one.

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@mitch2 that's why some (more practical) definitions exclude the primary residence because you have to live somewhere. Audio-spending-wise, your salary and liquid assets will matter infinitely more than what your house is worth.

 

@grislybutter Good point - "millionaires" may not be a good measure of the disposable wealth in our society.

I was trying to make a point about the market for ultra high end luxury goods being very deep and I would make the same point by saying that there seems to be a race in the high end audio industry to introduce extremely expensive products. All of the evidence I see indicates that there is no limit to what people will pay for ultra expensive stereo gear.

Is seems that every month a company introduces a new six-figure audio component. There must be a selection of at least 50 speaker models that cost over $100k and dozens of other components that cost over $50k. The anecdotal evidence is that wealthy audiophiles wait in line to buy this stuff. In an interview with Dan D'Agostino he said that he is selling his Relentless $250,000 amplifiers as fast as he can make them. There are other similar anecdotes from manufacturers including Wilson regarding their top end speakers. They sell out their entire production run shortly after the model is announced.

The other piece of evidence is the number of new high end audio stores that have opened in the last decade. They seem to be thriving. To go along with this, the two surviving audio publications seem to be very healthy with each issue getting thicker with more advertising.

So I guess my answer to the original question is to say that boutique audio companies haven't found the upper limit to how much money some people will pay for audio gear. I don't know how many people have $1 million+ in disposable income but there sure seems to be a lot of them.

@8th-note no doubt, lots of big spenders out there. I don't see a lot of new hifi stores in my town, but a lot of new record stores and I assume hifi stores will follow.  

@8th-note Some excellent points. Which is why I asked the OP, when is the price simply too high? Perhaps the answer is at a far higher price point than has been entertained by the industry so far. Question becomes what that price point is..and for what product? This led to my thread about some very pricey cables on the cable forum..and which segues into this thread.

@whart while it is true to say I have not heard the Orion speakers, I doubt many have, I don’t think this is a requirement to have an opinion on my OP. Even if these speakers are as RH reported in his review in The Absolute Sound, with all of the hyperbole being justified, the question can still be asked, and that is…at what price ( to some there may not be a price, although I have a somewhat hard time believing this, given the size and impression that the speaker makes) is a product priced out of the market…and the result will be an absolute failure for the manufacturer and dealer network. For example, if we use the Orion again, the price is set at $133k…which to most folks is not going to be palatable. But, and here’s the thing, what if the same speaker was priced at say ten times this number…does that do the trick and now result in essentially zero sales, or is it twenty times ( hopefully by now you are getting my drift). Or, is it that there is someone out there that just has to have this product..and the price (any price) is irrelevant.
My point is can the ability of the product ( in this case, my example of the Orion, as it had a rave up review) always justify its pricing, regardless of whatever that price is? A matter of value, but is it to some?