Is it possible for a high end manufacturer to overprice their goods?


Having just read the interesting and hyperbole laden review by RH of the new Rockport Orion speakers in the latest issue of The Absolute Sound, one thing struck me..

is it possible in the high end for a manufacturer to overprice their product ( doesn’t have to be a speaker, but this example comes to mind)? I ask this, as the Orion is priced at $133k! Yes,a price that would probably make 99% of hobbyists squirm. Yet, the speaker now joins a number of competitors that are in the $100k realm. 
To that, this particular speaker stands just 50.3” tall and is just 14.3” wide…with one 13” woofer, one 7” midrange and a 1.25” beryllium dome ( which these days is nothing special at all…and could potentially lead to the nasties of beryllium bite).

The question is…given this speakers design and parts, which may or may not be SOTA, is it possible that this is just another overpriced product that will not sell, or is it like others, correctly priced for its target market? Thoughts…

128x128daveyf

@8th-note Some excellent points. Which is why I asked the OP, when is the price simply too high? Perhaps the answer is at a far higher price point than has been entertained by the industry so far. Question becomes what that price point is..and for what product? This led to my thread about some very pricey cables on the cable forum..and which segues into this thread.

@whart while it is true to say I have not heard the Orion speakers, I doubt many have, I don’t think this is a requirement to have an opinion on my OP. Even if these speakers are as RH reported in his review in The Absolute Sound, with all of the hyperbole being justified, the question can still be asked, and that is…at what price ( to some there may not be a price, although I have a somewhat hard time believing this, given the size and impression that the speaker makes) is a product priced out of the market…and the result will be an absolute failure for the manufacturer and dealer network. For example, if we use the Orion again, the price is set at $133k…which to most folks is not going to be palatable. But, and here’s the thing, what if the same speaker was priced at say ten times this number…does that do the trick and now result in essentially zero sales, or is it twenty times ( hopefully by now you are getting my drift). Or, is it that there is someone out there that just has to have this product..and the price (any price) is irrelevant.
My point is can the ability of the product ( in this case, my example of the Orion, as it had a rave up review) always justify its pricing, regardless of whatever that price is? A matter of value, but is it to some?

I think you are answering your own question: are there people out there who will pay more than the company thinks people will pay for its product? As long as diamonds and designer bags sell, men will pay for their own toys stupid sums. 

This industry may be the exception to the rule, but in most sales based industries, if one prices the product too high, the result is simply a no sale situation. I believe this applies to luxury items, but perhaps there are exceptions to this rule…and maybe high end gear falls under that category. Do we believe this?  
Certainly it would seem that there are a number of folks in the high end industry that do.