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

There is definitely a psychological factor in sales of any high priced and therefore exclusive product. In high end audio, this is absolutely a factor as well.

Probably we have all heard of the dealer rep who has told the manufacturer that their price structure is too low, in order to have a product that has a greater appeal to their consumer base who equate price with quality and ability.

I think this circumstance is most likely getting more popular in high end audio than ever. Which is a somewhat vicious cycle, as it tends to price out those but the most ardent and well heeled hobbyists. Certainly, it is not a good thing, at least IMHO, for the continued health of the industry; as it certainly puts off the young music lover who now looks at high end audio as purely an ’elitist’ endeavor! 

It is called a halo effect. It creates buzz and if successful, increases sales of their lower end lines. A loss leader, unless maybe it is a tiny company hoping for a couple home runs.

Rega makes a $40K turntable and KEF makes $230K speakers.

Technology/design trickles down. I think KEF has sold less that 5 pair of them in the US and Rega about 50 or so WW and won't sell it to anyone who will resell it (Not sure how Roy does that).

They looks sweet and I am sure they sound good. Luckily there are lots of good speakers coming out around the $5k mark for the new younger people if they are interested. While I have not heard them speakers from arendal sound, Mo Fi and even the new marten Logan motions are probably all 99% of what most people need. 
 

I added up my system the other day and I somehow have $50k worth of gear. If you would have told me I would own $50k worth of gear I would have laughed and said that would be dumb…. But here I am. So I guess if you have it you have it and if you can afford $133k speakers the price is not an issue. A $5000 purchase might be a bigger stretch for the average family.  

@sokogear  While there certainly is a marketing reason behind this strategy ( the halo effect), I believe it is also self- defeating in the long run. For the reason I stated in my last paragraph above. 

@james633 Sure, there are a number of more ’entry level’ products for the beginner audiophile, but this is not really the issue. When I first started in this hobby ( decades ago), as a young lad, I was struck by the fact that I could get into the hobby and the cost was similar to what I would have to pay at any large department store, who wanted to sell me an all-in-one off the shelf system ( with very limited ability and quality). BUT, and here’s the thing, I also noticed that in order to step up in the hierarchy of top-flite gear towards the top, I did not have to essentially pay sums that equated to a new house! (like today). That difference ( which I see as Major!) is what I believe is going to put-off most new and young potential hobbyists.