How do you determine how much to spend on speakers

This is a good question to which I don't think there is a firm answer, as you can tell by the myriad of responses here. The question is basically: "which components contribute the most to the quality of sound reproduction?", since it would stand to reason that one should sink the largest sum of money there. I was initially told by my local audio retailer that the most important part of the audio chain is the source (i.e. the CD or DVD player), since the rest of the system can, at best, only reproduce exactly what this component puts out. The argument was to allocate money to buy the best CD or DVD player, followed by the preamp/amp, and lastly the speakers (i.e. that the order of importance parallells the flow of the signal, since at each step the performance of that component is limited by what is upstream). While this is probably true, in reality, the MARGINAL difference from spending an extra $1000 on a CD player may not be the same as another component (say, a speaker).If there is a component that is onviously lesser in quality than the rest of the system, I'd say the money should be spent upgrading that component (i.e.-- "the chain is only as strong as the weakest link" theory). However, assuming you have a system where basically all the components & speakers are of relatively comparable (and reasonably good)quality, I'd agree that upgrading the speakers will have the largest effect on the sound, followed by the source components, then the preamp and finally the amp. I should also mention that adding a power conditioner and quality cables/interconnects can have a large effect as well. With respect to speakers, it is important to audition them with your system, since I find it difficult to predict from a store audition how the speakers will sound with my electronics and in my room. For example, my CD player is a bit on the bright side, so my aerial 7b speakers (which are slightly "reserved") sound alot better than my Thiel 2.3s (which are brighter), even though they are of relatively comparable quality, and both excellent speakers. Interactions between speakers and the electronics, I find, make it difficult to know sometimes if I'm really "upgrading" my speakers, or simply changing them.