Law Of Diminishing Returns?

Over and Over and Over again Money has nothing to do with sound quality.

Why do you people keep positing this?

It is design and parts quality that make the sound.

I can modify any audio component to be as good as or better than another audio component at any price point.  Been doing this for 20 plus year now.  Most, if not all audio components are built to a price point so they are mostly all compromised to begin with.

This is easy to understand - pop the lid - look at the parts inside a $5K unit and compare to a $50K unit.  Not much of a difference in general terms.

Happy Listening.

There is an assumption on the part of the OP and others that audiophiles spend more money based mainly on sound quality. I would challenge this basic assumption.

This hobby has morphed into a luxury pursuit where there is no longer any practical limit on the cost of gear. There are speakers, for example, that retail for over $1 million. Burmester released mono amps that cost $350,000 a pair. I could go on. At the same time there are dozens of documented blind tests that show that listeners can't tell most gear apart on sound quality. Therefore, I think the question of diminishing returns is mostly irrelevant.

We buy and upgrade our gear because it makes us feel good to do so. We get an emotional response to the story behind the product, the design and aesthetics, input from members of our tribe, and the brand identity. Confirmation bias will insure that it sounds better than the previous stuff and there's nothing wrong with that. If it makes us happy then it was money well spent.

In my direct experience I have tried to determine if upgrading will bring a worthwhile benefit. The core of my system is about 25 years old (Thiel CS6, Krell KSA300s, etc.). I could afford to buy some fairly expensive new stuff if I really wanted it. I've been to 3 audio shows and I have heard a bunch of 6 figure systems that didn't sound better than my setup and some that sounded considerably worse. I have also heard a few systems that I would love to audition in my home; MBL 101 E Mk II, for example. But if I spend the money it will be as much for the pride of ownership as the improvement in sound quality. I would simply love to have a pair of 101 E's plus a pair of those beautiful black MBL monoblocks in my listening room. You can bet they would sound glorious.

@jjss49

diminishing returns does not mean lack of positive returns, that last few percent improvement may well be worth it for those who choose to pay for it - this applies for many many fine things in life, not just hifi

Sorta agree and disagree as this is mostly personal.  If I would have known the last few percent improvement cost 6 times more than my first system, I wouldn't do it. Yup, it's my fault as I pulled the trigger without carefully evaluate "what kind of volume I want to listen to most of the time".  While my new system gives me better clarity but I really need to crank up the volume to enjoy it. At low/normal volume, I would prefer my old system as it is way cheaper. I guess there's that word..synergy when you've found it.

Another element of the audio journey which both OP and respondents have left out is the pleasure of the journey itself. As with travel, often the voyage is as important as the destination. With every equipment upgrade, and slow adoption of every new technology, I have found the process of adaptation and expansion just simply a Fun Activity. When upgrading components I focus on ONE at a time (including cables) so all other variables are kept constant. Is the $5k amp 2x better than the $2500 amp? Not even close. But is it noticeably better? Sure. I find the degree of improvement best tested by moving backward: once the ears have embraced the $5k amp, backshift to the $2500 amp now in your secondary system. The downgrade is more noticeable than the upgrade. And there is great enjoyment in Learning Experiences such as this one.

very well said @hickamore

this is a very nice articulation of my own journey over the many many years in this wonderful pursuit

to the other comments made, i would remind everyone that there are plenty of people in society with more money than sense, with more money than good taste, with more money than time, with more money than good values -- this is hardly news... maybe the news is that some hifi manufacturers are more overtly profiting from this age-old reality

the presumption in this thread, and in this forum, i think, is to have well meaning discussions and assistance provided to help people interested in doing the smart thing, make wise purchases, to maximize enjoyment for the effort and resources expended in this field of home hifi music production...

@henry53  Focal Clear headphones never sold for $2200. Both the original model and the later Mg model came on the market for $1500.