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 4 responses by ghdprentice

There are two standard ways of pricing: First, the market: basically compare your product with the available on performance and aesthetics, then to price accordingly. The second is cost plus… basically all costs plus the profit you require. If what you want to manufacture has the market price less than the cost plus price… you should not produce it… you lose money.

As a consumer you have a choice. Buy it or don’t. So the market of consumers will determine if the speakers you are talking about are worth it. There are a few people out there with lots of money with no sense, but this is the exception, not the rule. Folks that have made a lot of money typically have worked for it by being perceptive, educated, smart and not wasting money. So, if these speakers are successful. There is probably something to them.

@thyname 

 

+1

In addition you can work very hard (or more for the purpose of making money) in order to afford more or you can due without and concentrate your buying power on one thing. 
 

I drove ancient used cars until I was forty. I funneled most discretionary capital into audio. Focus. Also, I always pursued a career in what interested me, and one compatible with my disabled partners well-being, and income was always tertiary concern. But eventually I still was able to make a fair amount of money… hence I have a nice system.

@bob540 😁

 

That is the way to go. Just for fun, go to an high end audio dealer… listen to their best. It is fun, and inspiring. Over time, you can slowly move up your aspirations as your means increase.

 

For me, now retired, my system is a constant source of enjoyment. I worked slowly and consciously towards this for decades. 

The watch analogy does not work at all in the high end audio field. In high end audio cost is based on performance… not even remotely true in high end watches.

 

Before I retired I realized one of my aspirations, if I was successful in life was to own a Rolex. So, ten or fifteen years ago I bought a starter watch to introduce me to nice watches (I had used Seiko divers watch’s for decades because I was a diver). I was shocked at how bad it was at keeping time… it’s primary function. I got it adjusted, but found that one second per day was standard for all mechanical watches… $2K, $10K, or $25K. I was shocked and disappointed… and if you get a quartz movement Rolex… then you loose cashe.
 

I lived much of the time in Japan and China, flying back and forth a couple times a month. This was not a watch for me. All luxury goods I have purchased before, first and foremost outperform… that is their raison d’être. But not watches. I finally found a Seiko Astron which was tied to the clock from GPS satellites and automatically adjusts the watch to where you are. In Japan, if your watch is off 30 seconds, you get on the wrong train. Anyway, watches, not a good analogy.

High end audio first and foremost is about performance.