Jeff's post is excellent. Speakers are the highest margin items in this industry. For a manufacturer to maintain R&D, marketing, sales and distribution they must make 50% gross margin, but most will make more. Many speaker lines carry 60% margin to the dealers. That means for a speaker that costs $500 to build it will sell to the dealer for at least $1000 and then to the consumer for $2200. Now if you increase your parts cost by $200 (or manufacturing cost), then it sells to the dealer for $1400 and to the consumer upwards of $3400. Electronics don't have these kinds of margins for the dealers, mostly due to their expense in parts and manufacturing and competition --as Jostler says: "What the market will bear".
What makes a speaker thousands more...
What makes, let's say a $7500 speaker more expensive than say a $2500? Is it the drivers, cross overs, cabinet, R&D, all the above, etc...
This could really go towards any componant, like why does Company X's Amp 1 cost thousands more than amp 2? I realize there generally is more power and clarity, but do they really have thousands more into it?
This could really go towards any componant, like why does Company X's Amp 1 cost thousands more than amp 2? I realize there generally is more power and clarity, but do they really have thousands more into it?