WILSON AUDIO/ cost vs. value

I am looking forward to hearing the new WP8 in LA this weekend.

With their current ad campaign, I think Wilson is trying to build a brand with similar attributes as those enjoyed by McIntosh in its heyday: quality, engineering excellence, overall excellence, the brand to own. Think of it as the Lexus or MBZ of loudspeakers. It's a good strategy for them, I think. They are trying to build a sustainable, long-term business, as they should. At this stage, they are less interested in the tweaky dickheads that hang out on Audiogon, and with good reason.

As to the profit margin statement, they probably do have a pretty good feel for what their competitors' margins are: they know component costs, they have intel about dealer margins, they know. Whether or not their margins are lower is hard to say, but perhaps they truly are.

Now discussing his advertising. I bet there is a firm
involved.

Of course he has an ad agency. I'm sure most
high end companies doing remotely near his volume of sales have ad agencies.
If not, they end up with ineffective, ugly crap.

Question to Macrojack: Does the 1/5 of MSRP refer to COGS alone? What exactly is included? Before we can declare that his margin is 67% (12k/18K), we need to consider such costs as warranty expense, shipping (not trivial on Wilson speakers), sales and marketing as well as other G&A expenses. When it gets to profit that falls to the bottom line and accrues to the owners, I expect it's a much smaller number than $12K per WATT/Puppy.