Hi All,
The "point of diminishing returns" typically describes the amount of performance that is achieved at a particular price point (from a specific product or from a group of products) and how much more money it will take to achieve a significant improvement in performance. If the original price point is sufficient and the product is of good quality it will usually take quite a bit more money to buy a product with significantly higher performance. Of course, when we are discussing audio components it is very subjective but that is the general principle.
For example: a $500.00 high quality pair of loudspeakers has a particular level of performance (usually pretty good in a number of areas). To buy a different speaker that is 50% better in those areas (and possibly better in a few other areas as well) may require spending 100% more money ($1000). The amount of improvement (50%) is not equal to the amount of extra money spent (twice as much). To achieve an even higher improvement (75%) compared to the original speakers may require spending four times the amount of money (400% or $2000). As you can see, as higher and higher levels of performance are desired it requires a progressively disproportional amount of money to be spent. These percentages and amounts are only used here for illustration and may not necessarily coincide with your experience or perception.
Best,
Barry
The "point of diminishing returns" typically describes the amount of performance that is achieved at a particular price point (from a specific product or from a group of products) and how much more money it will take to achieve a significant improvement in performance. If the original price point is sufficient and the product is of good quality it will usually take quite a bit more money to buy a product with significantly higher performance. Of course, when we are discussing audio components it is very subjective but that is the general principle.
For example: a $500.00 high quality pair of loudspeakers has a particular level of performance (usually pretty good in a number of areas). To buy a different speaker that is 50% better in those areas (and possibly better in a few other areas as well) may require spending 100% more money ($1000). The amount of improvement (50%) is not equal to the amount of extra money spent (twice as much). To achieve an even higher improvement (75%) compared to the original speakers may require spending four times the amount of money (400% or $2000). As you can see, as higher and higher levels of performance are desired it requires a progressively disproportional amount of money to be spent. These percentages and amounts are only used here for illustration and may not necessarily coincide with your experience or perception.
Best,
Barry