Stratospheric audio gear prices


The more time I have under my belt pursuing quality audio, the more I realize that high audio gear prices have some basis in their quality. Yet there is a limit. When you buy a Ferrari the cost is high, but you can see the money involved in the design and parts. Many would argue that high quality audio gear is similar to the quality and design of a hyper-car. But when you look a the sheer quantity an complexity of this kind of car, there is no piece of audio gear that compares. To me, a piece of audio gear that costs as much as even an inexpensive car is just a manufacturer cashing in because they can. Can you imagine what audio manufacturers would want to charge for a piece of audio gear that was the size and weight of a car? Like $100 million.  I believe it just drives the whole market up and we end up getting a little bit suckered. This is all perhaps a little overstated. I guess I just want to shame audio manufacturers. I do understand that they are not charities, or here for the betterment of mankind. If you are not frustrated by this, good for you.  Here is a quote from a book about marketing. The reference is a victim of link rot. Nevertheless it has common information. 
  

"Premium Pricing

Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction . A premium pricing strategy involves setting the price of a product higher than similar products . This strategy is sometimes also called skim pricing because it is an attempt to "skim the cream" off the top of the market. It is used to maximize profit in areas where customers are happy to pay more, where there are no substitutes for the product, where there are barriers to entering the market, or when the seller cannot save on costs by producing at a high volume. It is also called image pricing or prestige pricing.

 

Luxury has a psychological association with price premium pricing. The implication for marketing is that consumers are willing to pay more for certain goods and not for others. To the marketer, it means creating a brand equity or value for which the consumer is willing to pay extra. Marketers view luxury as the main factor differentiating a brand in a product category."

Source: Boundless. “Market Share.” Boundless Business Boundless, 26 May. 2016. Retrieved 07 Feb. 2017 from https://www.boundless.com/business/textbooks/boundless-business-textbook/product-and-pricing-strateg...

ericrt

Showing 3 responses by stuartk

Talk about "first world problems" ! I'm glad I don't have to worry about such things. I can't afford to chase after the nth degree of SQ so I buy what's within the reach of my budget and enjoy the music. I've had friends with much, much costlier systems and while their systems sound good, I still prefer mine. This, to me, is success. 
vinylzone

"Be happy with what you have, or can reasonably obtain. Don't be upset over what somebody else chooses to do with their money, or charges for their goods or service"

Wise counsel for those who value peace of mind.

If, on the other hand,  you prefer an endless, never-satisfied "grail-quest", there's clearly no shortage of opportunity for that !
"There's roughly a bazillion examples like that, but people don't know because the ones who are constantly running around predicting the end of the world are noisy and get all the press"

You can take heart, millercarbon, that all those pesky doom and gloom proclaiming scientists will most likely continue to be ignored, however much noise they might make. Standing on a branch while simultaneoulsy sawing away at it is not, to my mind, "intelligent", but perhaps we are working with different definitions. 

I should probably just keep my mouth shut about such things.  I try to not let political differences get in the way of getting along with others with whom I share common interests and most of the time I succeed but we all have our limits... in spite of our intelligence.