The mistake armchair speaker snobs make too often


Recently read the comments, briefly, on the Stereophile review of a very interesting speaker. I say it’s interesting because the designers put together two brands I really like together: Mundorf and Scanspeak. I use the same brands in my living room and love the results.

Unfortunately, using off-the-shelf drivers, no matter how well performing, immediately gets arm chair speaker critics, who can’t actually build speakers themselves, and wouldn’t like it if they could, trying to evaluate the speaker based on parts.

First, these critics are 100% never actually going to make a pair of speakers. They only buy name brands. Next, they don’t get how expensive it is to run a retail business.

A speaker maker has to sell a pair of speakers for at least 10x what the drivers cost. I’m sorry but the math of getting a speaker out the door, and getting a retailer to make space for it, plus service overhead, yada yada, means you simply cannot sell a speaker for parts cost. Same for everything on earth.

The last mistake, and this is a doozy, is that the same critics who insist on only custom, in-house drivers, are paying for even cheaper drivers!

I hope you are all sitting down, but big speaker brand names who make their drivers 100% in house sell the speakers for 20x or more of the actual driver cost.

Why do these same speaker snobs keep their mouth shut about name brands but try to take apart small time, efficient builders? Because they can.  The biggest advantage that in-house drivers gives you is that the riff raft ( this is a joke on an old A'gon post which misspelled riff raff) stays silent.  If you are sitting there pricing speakers out on parts cost, shut up and build something, then go sell it.

erik_squires

@mijostyn Wrote:

 A properly set up system does not need a center channel, even for movies. 

I agree! 😎

Mike

The single most expensive part of speaker manufacture is the laber by a huge margin.

Which makes my point, that the driver cost is a tiny part of the value in a commercial speaker, and that cottage makers can put a lot more driver value into a speaker by virtue of being small operators with tiny labor costs.

 

As an example my subwoofers use about $1000 worth of parts, drivers, and materials. One subwoofer enclosure has 168 hours of labor start to finish. Shop time is now $200/hour.

Let me stop you right there, while I'm not saying labor isn't a big factor, that $200/hour only applies if you don't own the shop.  That's equivalent of a $400,000  / year salary and I don't know a single cabinet maker who makes anywhere near that much.

@erik_squires I still don't get it why would it be cheaper to make your own drivers vs buying them? And if it's so much cheaper why don't more speaker makers do it? I think its likely more expensive at least until you've amortized your startup costs.

@jond

I wrote a bunch but realized this is such a common concept that others probably wrote on this better. Google for: "profit margin vertical integration" and this is what I came up with, which is pretty good:

 

https://www.investopedia.com/terms/v/verticalintegration.asp

 

An at most, minor tidbit, according to a tiny bit of research online and in my handy dictionary, the word riffraff is to be written thus or at times is hyphenated: riff-raff.

 

Musikhead52