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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
prof
3,474 posts
 

Answer:  Of course.

I've often wondered how satisfying it actually would be for those manufacturers engaging in this race-to-the-moon-who-can-price-higher model.

Where you sell just a few a year.  Is that really satisfying?

Do you really want to spend all that time engineering great sound, only so that it can be experienced by a few rich guys?  And not only that: often enough Rich guys who may be buying "to have the expensive thing" vs those who have to strive for what they buy, and truly appreciate your work?

I'm sure it works as a business model.  Everyone is doing it now.  But in terms of personal satisfaction?   I'd want my work to be enjoyed by as many as possible

skinzy's avatar
skinzy
180 posts
 

What I find interesting is how dealers and equipment manufactures tend to complain how difficult of a business high end audio is. Tough to stay a float. Yet at the same time there are hundreds of manufacturers entering the market and constantly introducing new products. With dealer and manufacturers margins at 40-50% it’s hard to find truth or empathy.

daveyf's avatar
daveyf OP
2,874 posts
 

@prof   +1

Question is...do these guys even sell just a few a year?? Perhaps just selling one of the piece is enough???

mitch2
4,003 posts
 

Why spend all this energy speculating and judging what others should be thinking or doing like some sort of social crusade?

Those manufacturers are likely making exactly the choices they want to make.  Anyone who doesn’t agree is free to spend their money elsewhere.  Pretty simple.

prof
3,474 posts
 

I haven't noticed any posts that look like someone is on a crusade (might have missed it).

But it makes sense for audiophiles to discuss the nature of how audio gear is being priced these days.  I mean...that's obvious, right?

 

 

 

 

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