In other words, if there's a criticism to be levied here, it's definitely not specific to audio. Blame the human race!
Stratospheric audio gear prices
"Premium Pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction . A premium pricing strategy involves setting the price of a product higher than similar products . This strategy is sometimes also called skim pricing because it is an attempt to "skim the cream" off the top of the market. It is used to maximize profit in areas where customers are happy to pay more, where there are no substitutes for the product, where there are barriers to entering the market, or when the seller cannot save on costs by producing at a high volume. It is also called image pricing or prestige pricing.
Luxury has a psychological association with price premium pricing. The implication for marketing is that consumers are willing to pay more for certain goods and not for others. To the marketer, it means creating a brand equity or value for which the consumer is willing to pay extra. Marketers view luxury as the main factor differentiating a brand in a product category."
Source: Boundless. “Market Share.” Boundless Business Boundless, 26 May. 2016. Retrieved 07 Feb. 2017 from https://www.boundless.com/business/textbooks/boundless-business-textbook/product-and-pricing-strateg...
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Much of human happiness, for better or worse, is derived by one's status relative to others in one's perceived peer group. Expensive goods of all kinds is one way to try to raise one's social capital. Audio is just one of many ways to do this. In other words, if there's a criticism to be levied here, it's definitely not specific to audio. Blame the human race! |
If you don’t like the price buy something else instead of whining. I buy items I can afford, and don’t worry about things I can’t afford. Listen to the song. https://www.youtube.com/watch?v=6H6SiNVLcYU&ab_channel=GrooveNoteRecords |
What is stratospheric pricing to you? $150K? Most companies have flagship products that advance the art and have lots of top electrical designers time invested in it... few are sold. So costs are high when you load with the R&D. You price against the competition. Then the technology trickles down the substitute cheaper components and offer reduced price stuff. Maybe in the $20K range to sell many. What is the actual manufacturing cost? I wouldn’t be surprised if it was $3-4K... onverhead, selling and administrative costs. To the best of my knowledge none of these companies is incredibly profitable, they are sold all the time. |
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