They know we will pay anything they can think of

+1 @ghdprentice

The OP seems very unfamiliar on how businesses work, how pricing is established, which market segments they compete in. He seems to ignores the costs of running a business, the R&D expenditures, and a markup enough to be net profitable/survive.   If it were a larger market and thus able to sell more then maybe markups can be reduced offset by volume, but high-end audio is a small niche market.

Audiophiles are not “suckers” blindly paying more thinking that they will get a better sound. We generally are very careful and thoughtful on our choices.

….Out comes a price you know the rep made up while sitting in his office wondering how much he can ask those sick people to pay..

This seems false- unless the rep is the manufacturer, reps prices are usually established by the manufacturer. Reps sometimes can offer discounts to get the sale by reducing their profit margin, some manufacturers frown on this.

…advertising, manufacturing, and overhead is relatively expensive

What about R&D costs?  This is a major factor in driving up costs.  I’ve been to the Magico manufacturing where they gave cutting edge equipment including computers, CNC aluminum cutting machines, etc.  IIRC they recently build/upgraded a $250k sound room.  These costs must be covered by sales income.

I have Vimberg Mino D speakers whose Herculean construction is designed to reduce cabinet resonances and the finish is impeccable- this obviously adds to the cost.  The Diamond tweeter obviously is costly.  It is not some mere random markup.  I’m fortunate that I could afford this speaker which is the lowest model from trickle down technology from Tidal.

I also have the Constellation Inspiration electronics. Again I’m the beneficiary of trickle down technology as my electronics are Constellation’s entry level. These were listed in TAS top 50 bargains.  This doesn’t seem to fit the OPs random markup theory