Cornfedboy, thanks for sending out a reality check here. I don't know about the Republican party aspect, but you made some good points IMO. Imagine for a second that you are a gifted designer/engineer/inventor. You have an idea that could potentially enhance lets say... multi channel playback, it takes $100,000 to fund your research and developement for 3 years. You are now able to produce the worlds next, "best" playback device. With investors you manufacture 3000 of these devices, costing $500 each to produce, totaling 1.5 million in hardware alone, not to mention paying 5 employees. You spend $30,000. to advertise, all the while praying your idea is accepted. Your total cost to produce and market this product is $4000 each. You have mortgaged your house and borrowed from friends to retain a controlling interest over this because you want to maintain design integrity and insure that you keep a fair share of the profit, should there be one. At your A/V dealer this product is displayed and demonstrated for the public, (costing the dealer some time and money). People check it out and find that they absolutely love the sound, and it would be a major improvement in your sound system, but it cost say... $14,000. That may seem "high' to some people, but you only get $6,500 at your wholesale price, giving you a $2,500 profit. You sell 1500 of them totaling $3,750,000. Minus your 2,000,000 investment gross profit is 1.5 mil. Split among investors you made $150,000. This enables you to afford to refine your copyrighted design and sell that to a major audio manufacturer for 2 mil. The public gets an even better playback device at a fraction of the original cost, say... $1,400. Change the numbers however you want, is the designer/inventor wrong for trying to build a better "mousetrap", and profiting from it? lets see, at first we had a $14,000 "over priced, self indulgent, conspicuously consumed" device, now the general public can get close to audio nirvana at 10% of the cost. Five years later, the same technology is available for $359 at Circuit city, and all the "less fortunate" people can now have some guiltless higher end fun. Why all the guilt tripping?. I have carefully spent around $15,000 over a 3 year period to come as close as I can to a $60,000 system. Would I have prefered to start out at that level?... Damn right I would. I would have been enjoying my system that much sooner, spending less time researching and negotiating, and more time listening to music.
Are you Guys Rich or What!?
I have an old system, nothing special, Adcom, Vandersteens etc and I recently set foot for the first time in a "high end" shop, hoping to get to the next level of audio nirvana. When I saw some of the prices for monoblock amplifiers, cables, the latest speakers etc, I practically fell off my chair when I realized that I could blow $50-100K pretty easily on this stuff. I am not rich. Do you big budget system guys all work on Wall Street or something or do you eat macaroni and cheese most nights to put a few bucks away for CDs and your next upgrade?
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- 127 posts total
- 127 posts total