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…
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.
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@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. |
Two things... it's about margin (profitability) and what the Market will bear. I once consulted for a fairly high-end, reputable and recognized amplifier manufacturer. They were conducting a market study on a proposed $10k pair of monoblocks. The feedback they received was for the quality of amp they manufacturer, most felt that price was "too low" at the time. They decided to price them at $25k and after bringing them to market, they sold quite well.... That said, sometimes it isn't what the may feel is a fair price, but rather what their customer deems fair and worth the value. |
