Why are so many people trying to sell Harbeths?


These speakers have their devotees to be sure, but it looks like a lot of people are falling OUT of love with them. It's a trend I've noticed here on Audiogon. Opinions?
cooper52

Showing 2 responses by bcgator

@Sunnyjim

You can feel free to ask manufacturers about their input costs, but you are no more entitled to know manufacturing input costs than I am to know how many times members on this forum are fornicating with their partners. When you bought your last clothes dryer, did you request the input cost of the rotating tumbler used in that particular machine?

As for the "tired theory of perceived value", that's known as the Austrian school of economics which basically espouses that an item is worth whatever someone will pay, for the value/utility/enjoyment derived from that item, taking into account the cost of possible substitutes for that item. Which contrasts with what I suspect you are espousing, which is basic Chicago school theory that the cost of an item should be directly correlated with its input costs, largely irrespective of perceived value. I won't get into a debate about both camps here (unless you want to), but suffice it to say that it's very easy to shoot holes in the input-cost model, i.e. just because someone puts two hours of time @ $15 per hour into carving a toothpick doesn't mean toothpicks should cost $30. And it goes both ways - if the manufacturing cost of a plastic comb is 4 cents but you're about to walk into a job interview and you need a comb and don't have one you may pay $20 for one.

Be careful before you dump on the concept of perceived value - we all pay it, in all walks of life for products from every category. You yourself will pay "perceived value", in some department store or supermarket, before this week is done.

Roxy54 is right - if Harbeth speakers weren't "worth" the money, people wouldn't pay it and they wouldn't sell anything. I don't own Harbeth, never have, but I appreciate their place in the market and their position in the minds of music lovers.
Sunnyjim, nobody is debating paying retail - I'm quite certain that's a debate you'll rarely encounter here. I like paying closer to wholesale, I'm sure most people do. We all like discounts, we all like finding bargains.

At issue here is what seems to your belief that manufacturers should only be entitled to some pre-determined profit margin, directly tied to proportional increases in input costs - as you alluded to with your "reasonable increase of 25-30%" comment, and wanting to know manufacturer costs before making a purchase (which ironically is sort of Marxian, don't you think?).

Where we do agree is in your pointing out that we are talking about electronically sophisticated products, not disposable items like combs and light bulbs. Manufacturers must maintain excess component inventory so that they can service these products after the sale, so that when a moving company drops your speakers you can get immediate replacements. The larger the customer base, the larger the required service inventory. I'm not suggesting that this is the reason for higher margins, only that there are many factors that may account for any company's price structure increasing.

But like everyone says, we all vote with our wallets. That's the beauty of a free market economy, when we actually allow it to work (which is as rare as unicorns these days).