Streamer upgrade? follow up.

The question arose because of the cost of a computer device with a power supply that just transmits data and has a small screen. I don't know if such a device may r contain expensive parts and labor, might well be the case. I posted a question. Ideally, besides the owner, ordinary employers should  also benefit from a high cost  product they produce. You say that this is not how it works ("free" market), I readily agree that it is true. 

@niodari I've been diy building/assembling desktop computers, modding mac minis for music server exclusive duty for many years. Also was in midst of researching and planning building/assembling an extremely high end bespoke streamer, which didn't pan out as I was provided with opportunity to purchase a custom build that pretty much replicated what I was intending to build. The bespoke streamer contains $4k worth of parts plus cost of subscription to Euphony OS. Add $6K for LPS to power it.  I can tell you very factually vast majority of off the shelf don't come close to this. One can open up any of these streamers and determine the exact cost of these components, vast majority use  parts you or I could purchase. Some use custom build motherboards, but even those aren't that expensive, I'd estimate $1k in internal parts for many. Keep in mind one isn't paying for parts alone, enclosures, R&D for seamless use and optimizing OS, and proprietary music players if offered. At the top end, add nice power supplies, proper rendering, even more R&D, there is good reason the Taiko Extreme, Wadax, Aurender, Innuos, etc. best streamers cost big bucks. One then needs to add in business model costs, distribution, dealer markups, etc.

Bottom line, each individual has to determine cost/value proposition. Many things other than cost of internal parts enters equation. DIY will require one's own R&D, many hours labor, hassles, steep learning curve, no warranties, may not be any technical help, more things I'm probably forgetting. I'd never claim off the shelf to be ripoff, diy not for faint of heart!

@sns Nice informative well thought out post , thanks sns. I’ve owned and run a micro business in Southern California for 37 years. My perspective on businesses both large and small is based on my own experiences during that time. Im constantly shocked at the cost of doing business especially here in So Cal. Sometimes Im amazed these high or higher end hi fi companies can stay afloat, they’re not dealing in the main stream market place but a rather small niche that Im told is actually shrinking.Im sure alot of these companies struggle especially at the R&D phase keeping they’re costs in line based on the number of units they anticipate selling, it’s gotta be a gamble. Keep listening, dig your system btw, Id love to hear it I can tell it sounds great you wouldn’t have it any other way Im sure.

@bikeboy52 I too am amazed at how some of the low margin, meaning relatively lower or sanely priced manufacturers stay in business. They need to move quantity in order to survive, can't figure out how you move quantity with audiophiles being such a rare breed. My sense is the really high end manufacturers charging big bucks have much higher profit margins, many costs are fixed regardless of component price. The added costs, such as superior parts, greater R&D efforts are proportionally less to total cost of component. The highest end audio also tends to sell itself, at least once reputation is attained. Also, less competition, perhaps no competition for the truly bespoke component means one can charge whatever market will bear.

So, in a way, if above is true, the highest end components offer the least value for money, however, if they do something truly unique value is virtually unmeasurable.

I'm involved in family business, we're lucky in that we've established a reputation after forty years in business. We had to really work for business years ago, now we can't keep up with orders. Good luck with your business!

@sns Thanks for your post. I am not sure at all, but i suggest that you may have to do something  with Aurender company... and it was interesting to learn something about how these products are cooked. I didn't think  N200 may have parts of that cost inside... I wish to try some alternative to the Bluesound Node 2i.  I like an idea to combine a streamer with a music server and also to have both, Ethernet and WiFi options, because of two reasons. One, to be able to compare directly their SQ, and two, in my case i will need about 15 meters long Ethernet cable, at least, this will not look nice. 

I wish you and OP all the best in your art/business, and happy New Year to everyone!