Economics of small speaker manufacturers


Looking at the drivers, cabling and woodwork that some small scale factory direct speaker manufacturers offer (Tyler Acoustic for example), I am curious to know what the selling price would be if the same speakers were sold by say Dynaudio, JM Lab or B&W via their multi-echelon distribution channel, accounting for shareholder return, marketing expenses, profit of all distributor-retailers involved, etc?
When Tyler sells a pair of Linbrook System 2 for $4,000 shipping included ( as stated "one 8" Seas magnesium woofer, one 7" Seas magnesium midrange and the Seas millennium tweeter. Hovlands, Alpha cores and Sidewinders are used in the critical signal paths. DH Labs wire comes standard" + real veneer"), how much would this sell for if it were a bigger "commercial" brand?

Thanks for educating me.
kanuk

Showing 2 responses by aktchi

Great topic and while I don't have answers, only more questions, I do look forward to reading what the better informed A'goners have to say.

Smaller "boutique" manufacturers emphasize the savings affected by eliminating layers of marketing and distribution. So, is Tyler's Woodmere II or Linbrook II actually better than comparably priced models from Spendor, Proac, B&W, etc?

OTOH, the other camp would point to "economy of scale" and perhaps cheaper production costs overseas. So, is Quad 22L, or LSA and DCM models, actually equal to more expensive boutique products from Tyler, Salk, GMA?

So, we have two competing effects, both real, and I don't knpw how they balance out.

One thing is sure: By going to a boutique, you can get personal attention and customization. People have been able to talk Tyler or Salk into modifying just about anything to accommodate their needs. However, I don't know how price/quality equations compare. Looking forward to the discussion. :)
As scientists discovered long ago, many questions cannot be answered by theoretical pondering alone, even by brilliant thinkers, and we have to go to the real world to see what is actually going on.

In principle, a boutique shop could pass on much of the savings to the customer giving you a "$5000 speaker" for $2500. Or it could decide that you're used to paying $5000 for such sound and charge $4799. Who is doing what?

In principle, a big company could use overseas production to give you the best quality at 1/2 price. Or you could get 1/10th quality for 1/2 price. :) Again, who is doing what?

This is not for theoretical deduction. In the end, we need A'goners who know the best of each kind and can tell us where the best values are.

The answer may well depend on the price range: for example, it is quite possible that for the "best $1000 speaker" you need to go to a big company outsourcing from China, and for the "best $5000 speaker" to boutiques in small town USA (that's an example, not a statement).

In any event it is important to compare best with best. Much review ink is wasted on comparing good product of one kind with mediocre ones of the other.

Fatparrot:...the problem with Chinese gear is that you never know what you're getting.

That's why I won't buy direct from China at this stage. However, with a company like Quad or LSA in the middle, I expect them to take care of QC issues.

As a general life lesson, I have seen many Westerners make a mistake in Asian countries. If something costs $100 back home, we should be glad to get a comparable item for $50. Instead they get busy chasing $19 possibilities in proverbial dark allies. :) So, while made-in-China is cheaper, we don't have to chase absolutely the cheapest that may be out there.