Modern Linestages

Thorman: "The Manufacturers operate at a Mark up of 500%...Thats the reality of it....."

I suppose that's true from one perspective, and I've heard that parts cost typically is only about one-SEVENTH of the RR$.

But do understand, first, that the manufacturer is lucky to get 1/2 of that retail price, and then labor, plant overhead, customer service, administrative costs, product-development costs, and last and only last, profit have to be covered in that wholesale price. Lots of hi-end-equipment manufacturers are NOT profitable and eventually die. Certainly some hi-end manufacturers are profitable, but to blab with no apparent understanding that equipment manufacturers operate on a 500% markup is simply idiot.
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A manufacturer will charge whatever the market will bear. It has nothing to do with design, manufacturer cost ... as long as there is demand for whatever reason.

Knghifi, sorry I don't understand. Perhaps you could provide a few examples of high end linestages that fit your model of business behavior. Alternatively, you could explain how demand for higher end linestages is unrelated to design considerations or manufacturing costs.

Onhwy61, you don't have to be sorry but if you are still confuse, then you are beyond my ability ... out of bullets. Good luck!

Onhwy61,I believe you feel that components are or should be priced on a cost plus basis.It just isn't done that way. Every item has a Market Price.This price has nothing to do with its cost.
If a manufacturer's suggested retail price is competitive
to its competition it may survive.
If it is superior in quality the maker should reap a very healthy profit.
If it is inferior well,who knows what will happen.
If an end user feels the product is over priced or he simply cant afford it he has the option not to purchase that product.Not all components are priced for the masses I dont understand why so many here complain about the cost or knock others that purchased one of these so called over priced items.

Hi Charles,
I've been going back and forth on passive vs. active as you know for a couple of years. I find that my passive sounds more real and less in the way, then most of the actives (some sota)that have been through my system.
So my flea powered Franks drives my system to 90+ spl's with ease and enough of the punch that pleases me. Not sure many 300b amps could pull that off but as you often state YMMV.
Regards,