Why Is Hi Fi Gear So Darn Expensive?


Why Is Hi-Fi Gear So Darn Expensive?! - The Absolute Sound

Interesting read.

"I recently heard a small 2-way stand mount speaker at a show. The sound was excellent. The product was priced at $50,000 or thereabouts, per pair. Allowing for distribution and marketing leaves about $25,000."

$25000 for distribution and marketing? Really? That much more for this than a similar product at 1/10th the cost?

I don’t doubt the marketing cost per unit could be much higher with boutique products. Makes sense. Is the cat is out of the bag regarding the value proposition of boutique products?

How about fancy fuses marketed for free here that cost practically nothing to ship? Oh my!

I guess there are "excellent" expensive boutique products and others that offer value everywhere. Hifi not unique. Take your pick! Live and learn!

The article also chalks up people’s reactions to high-fi prices to emotion. What about the sound they hear? Real or emotionally distorted? What would Mr. Spock think about that? I know he likes music...he plays a harp!

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Showing 1 response by drugolf

Well about the only way to actually reduce prices is to cut out the middle man.  Also known as your local brick and mortar dealer.  As we all know many brands have gone that route to be more competitive in the marketplace.

But then we are left with that type of shopping experience and support etc.

It is really expensive operating both a manufacturing business and a retail shop these days folks, especially in locations where the $ and potential sales are - big cities.

As a business owner, I am not surprised at all with much of the pricing.  The real question is do enough people feel there is enough of a ROI.  At some price point one would think a buyer would want to experience the product, at least a little, before dropping big $ on a piece....but maybe not.