Is it possible for a high end manufacturer to overprice their goods?


Having just read the interesting and hyperbole laden review by RH of the new Rockport Orion speakers in the latest issue of The Absolute Sound, one thing struck me..

is it possible in the high end for a manufacturer to overprice their product ( doesn’t have to be a speaker, but this example comes to mind)? I ask this, as the Orion is priced at $133k! Yes,a price that would probably make 99% of hobbyists squirm. Yet, the speaker now joins a number of competitors that are in the $100k realm. 
To that, this particular speaker stands just 50.3” tall and is just 14.3” wide…with one 13” woofer, one 7” midrange and a 1.25” beryllium dome ( which these days is nothing special at all…and could potentially lead to the nasties of beryllium bite).

The question is…given this speakers design and parts, which may or may not be SOTA, is it possible that this is just another overpriced product that will not sell, or is it like others, correctly priced for its target market? Thoughts…

daveyf

Showing 4 responses by mapman

@grislybutter who knows? Each case is different. A Tesla can be a decent investment. Prices are actually down for some Teslas and of course you save money on gas. Of course you still have to be able to finance large ticket items somehow. The stock market is at an all time high. Personal debt is out of control. Always many looking to get your money. It’s a chaotic world in general. In some cases the chaos results in expensive high end gear. All it takes is the desire, some money and/or a good credit rating. In any case these things are luxury items. Things you buy because you want to not because they are necessarily truly needed. It’s the American dream! Women often tend to love expensive jewelry that in most cases is a bad investment. What’s 30% annual interest on a credit card as long as you get what you want? Things happen. A lot of it not necessarily a result of a well thought out financial plan.

@grislybutter Clearly the trend is fewer people possessing more of the wealth. Some may own golden toilets. Precious metals can be a very good investment. A few may find large Rockport speakers to be more to their liking as a statement piece. Different strokes. Some just way better financed than most. To the victor goes the spoils. A few smarts and hard work can end up in many different places. A big inheritance doesn’t hurt either. Isn’t this “the American Dream”?

As long as there are enough wealthy people with space to fill and who like expensive toys that will buy them,  they serve a unique purpose and are not any more overpriced than a Ferrari,  Lamborghini or designer watch. Or designer handbags and clothes for the ladies. 

If they charge enough and sell just 1 that might be all they need for easy money and a big profit. Some might call it a scam. But It’s attempted here all the time (sell something for absolute top dollar that can be finagled). It’s something agon is designed to do ie facilitate sales of one-off hyped up items only here on the “high end” site….the Ultimate hifi boutique shop. Complete with free forum for marketing efforts. See the occasional ad for a 10k power cord from a total unknown, for example. High end means more expensive and elaborate. Things few others are likely to own or want. Duh! Get a clue hombre! All else is subjective. So nope, no price is too high. The sky is the limit. All you may need is a buyer. So just factor in expense of hiring a few good shills perhaps. You know, the usual story just with expensive hifi things. Have at it!

 

Then you have the reputable vendors who have to be concerned about maintaining a good reputation. Different story !