WILSON AUDIO/ cost vs. value


wilson ad; absolute sound;issue 162. page 12.... dave wilson states in his ad that wilson loudspeakers have one of the [ lowest ] profit margins in the industry. My question is should wilson make public their profit margin percentage's to back up their claims or is this more hyperbole from a high-end audio manufacturer...
aolmrd1241

Showing 4 responses by allanbhaganinfo

For those, Mr. Wilson's achievement is notable whither or not you like his speakers, demeaning Wilson's serves no purpose whatsoever.
"I believe they are the highest profile offender", Offender!! Offender of what? They design and manufacture speakers, that sell to persons that can afford it and these people buy it, they want it, or they would not build them, they are creating and meeting a demand and as far as I can see, the only people that take offence to that are the ones that can't afford it.
Parts only make up a limited percentage of any product cost, as a person involved in manufacturing, I can tell you, there is Industrial design cost, which can be in the six figure range, product design costs, can also be in the six figure range, prototyping/ material selection costs, expert assemble and handling costs (cabinet makers), factory cost (taxes, lights, heat, air condition, water), then there is "after" costs, like liability insurance, health insurance, shipping, warranty costs, marketing, shows, future research and development, damages and so many other small stuff it would make your head spin.

Now all this investment has to be made back, plus the cost of parts.

How can we even begin to point fingers at Wilson, I mean, does your wife have diamonds, gold, how about art work, designer cloths, handbags, shoes, watches, do you eat in any fine restaurant, it is a class thing I am afraid, the only reason we think $27K or $250K is over the curve, is because to you and I it is, but to many it's nothing, so therefore to those that can afford these speakers it's worth every penny.

I am not sure if Wilson is right in what he says in the ad (unless we see his books and every other speaker manufacturers) but I do understand what he's trying to say.
Again, I can't argue on if the Wilson statement is accurate or not, as much as anyone else here can't, but being involved in the manufacturing of amplifiers that are in the process of changing its entire line and looking at the costs ahead and behind us so far, for things like C&C machinery, specialized booths, engineering costs, tooling, industrial design, I can tell you without conjecture it can cost close to a million dollars to bring honest products to market.

I suspect Wilson could have much more than that invested in their facilities and if one does not include all daily operational expenses, one would not be in business long, there is so much more to it than a simple equation of cost of production to retail.

So unless someone here is Wilson's accountant, we can only speculate on if Wilson's claim is accurate or not but from where I sit, I can see it being closer to the truth, than not.

FYI, I do not own a pair of Wilson speakers or have I ever, nor do I suspect that Wilson has ever used or even heard of our amps but I feel to single out a prominent manufacturer who may have millions as well as decades invested, whither or not we like the speaker and simply because some feel that an advertising statement is misleading, is simply wrong and extremely judgmental, especially without any kind of pertaining facts.

My defense is not only for Wilson but I feel it's to all honest manufacturers who have spent a greater part of their lives along with immense investments to bring products to consumers who are very happy with them, Bose and Polk included.