Law Of Diminishing Returns?


I'm curious about what you enthusiasts think of the product or price that eclipses your definition of "value".  

As an example I have a rich buddy that just spent 100K upgrading his (former) Pass 600s / Bryston / B&W Signature 800s / JL Fathom 8 speaker  system. I have a discerning ear and cannot hear the difference between the old system and his new S5M Perlistons (4) , Anthem AVN90, ,ATI amp AT6005 (4) and four subs.

This got me to thinking- 80% more money for maybe 20% more sound quality? 

Where is the sweet spot for the discerning ear and the affluent but not Billionaire (think Doctor/Lawyer/Indian Chief) budget?  Can you get 80% HiFi sound for 20K or do you need to spend 100K to get that HiFi sound?

-Asking for a friend :)

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@ghdprentice +1 An entirely personal thing. The original post is a perfect case in point. No audible difference between the two mentioned systems?!?! No way! Of course there is, and that difference may be very significant to someone else. No disrespect intended, but we are not always as discerning as we think we are. 

@nonoise post rings so true. I do not have the resources to get to the point of DR, so when I make an investment, it usually is a net, net gain for me. Meaning it is well thought out and researched.

Whenever I see the use of the phrase, the law of diminishing returns, it’s usually in a review and meant to assuage the reader that he need not buy the item under review as it’s really not much better than what he already has or is willing to spend.

Apparently, it doesn’t work.

"is a wagyu ribeye 4x better than a choice ribeye"?

Yes.

Audio equipment?...To me...not so much after you reach a certain level...

Don’t ever buy a new car, its value drops 30% the second you drive it off the lot! Same thing with hifi, but if you want new and exciting with a full warranty, you’ll buy new. 

Certainly buy runout gear, examples Focal Clear phones $2200, bought for $800, Audio Physic Speakers $5700 bought for $2900, Cayin tube amp $3600 bought for $1900 there are plenty out there. I rarely pay more than 60% for anything.