I recently had the owner of a very good audio retail store tell me that a speaker manufacturer will spend $10K to build a speaker. They then wholesale that speaker to the retailer for $20K. 100% mark-up or 50% margin. The retailer then puts the speaker on the floor for $40K. Again, 100% mark-up or 50% margin. I have no reason to think he was not being truthful. My takeaway is the retail price has nothing to do with the cost of manufacturing or my expectation of highest quality components. Cheers.
Did I Expect too much?
I purchased a pair of speakers from a US manufacturer who I shall not name. The speakers are beautiful and the sound exceeds my expectations (after a minor upgrade). So why would such a reputable company use six dollar binding posts? It makes no sense. I replaced them with Cardas binding posts and decent 12 gauge wire between the driver and posts. My system is valued for clarity and clean highs. The difference was audible. I know, snake oil. But it wasn’t. I don’t think that spending $15K for speakers is nothing. So yes, I was disappointed.