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
I heard the Wislon line 5 yrs ago in New Orleans, was not impressed in the least. They could price em at whatever, I'm not interested. Then throw in the weight issue and amkes me wonder how/who/why anyone would buy. What Mr Wilson should explain is that they put big $$$'s in ads so they can keep the hype up and runnig hot.
Goatwuss -

Great moniker, from what/where is it derived?

My experiences are directly related to first hand experiences in several situations. This is not supposed to be a Wilson bashing on my part, just trying to get my point of not caring if their margins are indeed poor.
Come to think of it, how could Wilson possibly claim that their profit margins are the lowest? This is a ridiculous statement as the whole high-end audio industry consists of private companies who do not release their financial data. So how could Wilson possibly know how other speaker manufacturers set their profit margins??? Seems a bit insulting to the reader, in my opinion.
Audioaril wins the prize!!! The ad is quite insulting to audiophiles as a whole. Be it Wilson or whomever, give us the benifit of the doubt when it comes to our own intelligence to be able to discern fact from fantasy in the WORLD of high-end pricing. Its all over priced....
I find this discussion rather silly. If you don't like a speaker....don't buy it. As to Wilson's profit margin...most companies operate on a similar set of margins within a given industry....which will vary somewhat if the sell directly to the end user...or indirectly through dealers. Part of my experience comes from helping to manage a hifi speaker manufacture...there are certain relationships between the DIRECT cost of goods and the consumer LIST PRICE. Typically it ranges from 4 to 5 times the cost of parts and labor to put the finished speaker in the box. Consequently if a speaker LISTS for $10,000....parts and labor would thus be approximately $2,000....dealers typically purchase the product from 30% to 40% of the list price....and usually the dealer pays for the freight (not an inconsequential item for Wilson Dealers)...thus the Dealer would make $3,000 - $4,000 our of which he usually pays freigh. It costs the typically dealer about 20% of the selling price....$2,000 to pay his overhead and g&a...the sales person is likely to earn about $1,000 on the sale. This leaves about 40% of the LIST price...or in this example about $4,000 for the manufacturer to pay his overhead, g&a, research and development and marketing/sales promotion. This analysis change if you were dealing with extremely high volume sales....but I suspect this is close to the financial model for Wilson....and other quality loudspeaker manufacturers.
I spent a long time before I purchased Wilson speakers...I understand that they may not appeal to all parties...but they work for me and some percentage of the market. I WANT them to make enough money to stay in business...which they seem to be doing...which is important to someone who carefully selects a given product and wishes to keep for a long time.

just my thoughts