What makes a $20,000 cd player cost 20,000?

Would the answer to the original post change if the price was, say, $8,000? Still not an insignificant amount of money...

John (Stehno), my friend, the SHOOTOUT WE DID, will tell
you very clearly the SonyMdwright 9000es,is way much
more musical or equally better than the APL own by
a friend 711.I am willing to invite 711 in my place
this time with His upgrade APL 3910, this early summer.
This will be fun.IMO

There are 4 factors at play that make top-end audio gear very expensive.

1. Some fixed costs are higher in absolute terms, e.g. more extensive R&D to get the voicing right and achieve the desired balance of musical virtues... the last 10% of tweaking can take an infinite amount of time.

2. Fixed costs are spread out over a production run measured in the tens or hundreds.... as opposed to hundreds of thousands for mass market gear

2. Some variable costs are higher, e.g. high end capacitors vs generic stuff; more complex circuit designs may require more parts; small production runs may require manual assembly rather than machines

4. And, in some cases, because some people equate price with quality and some manufacturers find that they can afford to be less diligent while still charge more.

A high end manufacturer make several hundred or thousand dollars from selling a single item, but how many items to do they sell? I'd like to know about their total profits or, as a proxy, their lifestyle. I expect many are comfortable, but not extravagant, and that many are struggling.

I am not implying that all high end gear represents fair prices. Some items provide much better value than others. The burden is on us to listen and decide for ourselves. Don't get caught up in hype.

So the price is arbitrary, Grant?
Or are we presuming that no one who pays $20K for a CDP actually listens to it first?

Just how do we conclude that a $2000 CDP is worth the money? Or that a $5000 player is reasonable? More than 90% of the people in this world don't earn in a year what most of us have spent on a single component. Or cable! Value is entirely fictitious, and personal.

Some people will pay $400-600 to go see a concert, or an NBA game. And I cannot for the life of me figure out the value in that move. But there is no truth in this. Remember, not even money itself is absolute.