Speakers that are a great value!


I’ve been researching off the shelf speaker drivers quit a bit lately and smaller speaker companies as well.  I’ve been finding that companies like Fritz, Salk and Tekton offer incredibly well priced products.  I’m finding that with certain models, there really only appears to be small profit margin.  I understand that when you buy large quantities of drivers, you can get a small discount but still.

For instance, I’m seeing speakers that sell for $2000 might have $700 worth of drivers in them.  When you add in $100-$200 worth of crossovers, $100-$200 in cabinets, $50 for miscellaneous components like binding posts, damping material, wiring, solder or connectors you come up to around $1200 worth of raw components. Now add in labor to construct the boxes, possibly put veneer on them, solder and put together crossovers, install drivers and then ship the speakers, the value is really quite good.  I haven’t even talked about obtaining the woodworking tools to do such a product, rent on a building, utilities on that building and the labor costs if you have any employees. 

My point to all this is to open a discussion and to help people understand that there may only be a $400 profit margin on a $2000 pair of speakers.  I think that these are an exceptional value at full asking price and that should be taken into consideration when thinking about buying speakers from these manufacturers.  
I sometimes hear that these speakers are overpriced and that the value is not good and I would tend to strongly disagree!  
b_limo

Showing 3 responses by steve59

OP, pardon my arrogance for suggesting only the huge companies have the resources to design proper speakers, its only my personal thoughts and I have no experience with the little guys.
the big companies have the budget to design better products, but to get dealers to carry them they need huge markups. Buying used is the only value, I’m enjoying a very expensive system I would only dream about owning and because many audiophiles get hooked on having the latest thing us little people can enjoy sota. Anybody believe a $25k speaker from 5 years ago is any less musical than a new $12k speaker today? 
Can a guy working out of his garage buy a kit from madisound or the like and compete with companies that have unlimited resources? I build houses, but wouldn't be able to compete with pulte/dell webb. The guy in the garage is paying more for the raw material than the big guy pays for the complete custom cabinet coming from china's finest

 Lets go with the standard markup, 50% so I'll use the salon 2 or persona 7f for their exotic cabinets and drivers. The list of $22k means the dealer pays $11k and if revel maintains the margin after R&D the pair cost $5500, or the persona at $25k cost dealers $12,5 so paradigm if they have the same margin build the pair for $6200 bucks. How is the guy working out of his garage going to offer that value? He would go broke creating the first pair of cabinets! sure put some sonotube in a square box and cut holes for the drivers ala HSU research. now tune the xover for the exotic custom drivers. Sorry, but in my mind I see a guy with a typewriter trying to keep up with a printing press.