They know we will pay anything they can think of


Anyone have any idea how long ago Hifi manufacturers discovered we (audiophiles) will pay almost anything chasing our perfect sound? I individualized it because each of us are reaching for our own personal nirvana. You can go to any audio show, see someone point to a piece of equipment and ask the price. Out comes a price you know the rep made up while sitting in his office wondering how much he can ask those sick people to pay. We know advertising, manufacturing, and overhead is relatively expensive but we also know that the asking price should take care of that if he sells maybe 4 or 5 of them all year. Knowing that I have paid quite a bit for equipment over the years that I knew I shouldn't have but did anyway.

128x128frankmc195

 @frankmc195  I have learned here that price is an almost irrelevant consideration for a true audiophile.  Anytime anyone has questioned what they think is an absurdly high price for equipment, they typically get shouted down for daring to question how another person spends their money.  There are people here that have $100,000 or more in their equipment and listening room — more than 10 times what I have in my system.  Far be it from me to question how they spend their money — if ya got it, flaunt it.  I’ve always been a “bang-for-buck” person with limited funds and a budget.  I can’t spend 10 times what I do to listen to music, but bless those who can.  I understand the premise of your question, as I often think the same, but I dare not question anyone here about their choices . . . even though some will question, even scoff, at a person whose budget is limited and their choices reflect that.  I still glean some useful information here, though it is still a question of whose version of reality you prefer to believe.  Take care. 

@invalid I really didn't want to say this at all but what made me think of it was that the preamp didn't sound good and I was wondering if the rep thought he could get that kind of money for a preamp that wasn't very good. There is also a much advertised speaker that is along the same lines.... doesn't sound very good but asking price is nose bleed high. They have been in business for years so I guess that strategy may work. Again could be my opinion and also because someone is buying them I guess.

I think some reps and or manufacturers have slipped into the discussion but that is what it is far.... get both sides of the picture.

@waytoomuchstuff makes sense and does give me a clearer picture of what all is involved. Clearer heads always prevail.

How in the world a flagship product from many decades ago could be categorized non audiophile product today ? as my amplifier for example or my headphone...😁

Price is almost  IRRELEVANT in audio...I added the word  "almost" because there is quality difference for sure in design and negating this would be stupid to begin with...

 

Acoustic and basic embeddings controls are way more relevant...

😊 This is so evident i dont see another reason to oppose that than bragging about new branded name products...

My active speakers cost is 200 Bucks... They sound better than almost all headphones WHEN rightfully acoustically embedded and modified ( 6 modifications)...

A speaker box with porthole is an Helmholtz resonator... Take a bundle of straws of THE RIGTH DIAMETER AND VOLUME and compute with your ears/brain in few experiments, put this on the rear porthole, and i go from 85 hertz measured specs to 50 hertz; the timbre is more natural now and the imaging and soundstage include my listening position in nearfield better than almost all headphones at any price ... I call this box speakers audiophile now, thanks to basic acoustic...

@waytoomuchstuff

 

+1

Each component sale must pay for the below (just a quick list off the top of my head).

Cost of Research and development

Design (Includes hundreds of hours of listening and swapping out different parts and breaking them in). By very talented and expensive engineers.

Manufacturing set-up: Setting up a line, developing testing stations along the way.

Design packaging —- pay for set up

 

Cost of Manufacturing:
Cost of Materials

Cost of ordering dozens or hundreds of parts with different lead times (this takes time and if you are missing one piece… your dead in the water).

Cost of holding the inventoried parts and finished goods

Cost of holding large quantities of repair sub components for sometimes decades.

Cost of packaging

Manufacturing Costs

Labor (health insurance, time off, taxes)

Utilities: Rent, electricity, warehousing

Cost of IT. Computers, software to run the business, networking.

Returns / repair processing

Cost of selling:

Sales force… if even only one or two .

Advertising - pages in mags, Google searches… etc.

Coordinating add purchasing,

Developing and managing a global network of retailers.

Road trips to manage retailers / distributors. Pressesce at Audio Show all over the world.

Order entry, inventory management.

 

Customer support line / technical support.

 

Finance:

 

Accounts payable

Accounts receivable

Manage cash

manage accounts that do not pay, make sure accounts receivable do not grow faster than accounts payable or you go bankrupt.

Cost of Manage employees and operation

Periodic accounting cycles, annual tax returns… W2 for all employees

Employee relations

Taxes

 

The above must be paid for by the sale of each high end component. The higher the price, the lower the sales number… the more each unit must cover it’s development, manufacturing cost and the cost of ongoing operations.