Why hi-end speakers are so expensive? Only Bill Gate$ has hi-end at home?

[brianco]

Originally Posted by lolo

................ I work in yachting and believe me, these super toys are seriously underdeveloped when it comes to sound...........

Half a century or more ago there was a serious collapse of a UK washing machine company called "Rolls". The owner was a serious money spender and had a very large 'yacht' which boasted 3 masts...more a schooner. This was moored at a quay in Dublin and I remember looking through a few portholes. Beneath one was a Garrard 301 - mounted in gymbal rings. Some took 'at sea' sound seriously!

[lolo]

Originally Posted by Charles Darwin

Microsofts co-founder Paul Allen has a number of boats and each contains a top-notch recording studio. He is also maintaing a band to play with when he feels like it and has a large collection of guitars used by Jimi Hendryx.

Probably no Bose on his boats!

I know, he is one of our best clients.. And my colleague next to me worked for him for years!
Another client has the full Lyngdorf system, in a dashing minimalistic interior. (he also regularly fills his private jet with watermelons from Sardinia to Moscow, not relevant, I know)
Still, the majority have crappy sound systems. The video systems on the other hand often are very good.

[Xoc1]

A colleague of mine knows a local speaker manufacturer who sadly went out of business.
The speakers were expensive - but honestly priced.
According to the guy who made the speakers his biggest mistake was not to ask high end prices that would have assured high end exclusivity.
He might of sold less cabinets but it might have assured his survival in the market.
So have the manufacturers who cater for the high end got their business model wrong or right? If they are still in business they must be doing something right!

[Juggy]

Much has been said in this post, but i can give first hand experience.

I own a loudspeaker company that has been in start-up for 2 years.

To put it from a manufacturers perspective i agree, that the markups and costs that are associated with products inflate the price about 6x what the raw cost of building it is.

In all the industry costs alot of money, dealers take a minimum of 50% mark-up. Out of the manufacturers cut there are the overheads, even small production costs, then there are the MASSIVE advertising costs of shows and all those wonderful banner ads that reviewers want after they say a few nice words about your product.

The research and development of designing, modelling and testing speakers comes at a costs, like i have seen in a post here, the various parts that you test and then tweaks that are made to drivers costs.

Then take into account the relatively low volume of sales that are made and the ratio of cost vs. margin and you have the reason products are marked up so very much.

For these reasons, i'm cutting out as many of the steps in markup i can (at least for Canada and US) and selling direct and literally 50% of the price that the products now have in a dealer.

But in the end, this is a DIY forum, and it is DIY because all of you know and understand that building it yourself allows for much more learning and eventually a product where the price paid and returns had are better than anything you can buy anywhere.

[Charles Darwin]

Years ago I remember the designer of the ASR Emitter amps claiming that it would not be possible to buy the parts for less than his amps retail for.

How true that was I do not know.

I do know that the big Quested monitors retail for £68 000 + VAT (less if you ask nicely) the pair and the parts (without wood or labour) they contain cost £22 000 retail.

[Speedysteve7]

Well said.
I wish you every continued success in your venture.

Originally Posted by Juggy

Much has been said in this post, but i can give first hand experience.

I own a loudspeaker company that has been in start-up for 2 years.

To put it from a manufacturers perspective i agree, that the markups and costs that are associated with products inflate the price about 6x what the raw cost of building it is.

In all the industry costs alot of money, dealers take a minimum of 50% mark-up. Out of the manufacturers cut there are the overheads, even small production costs, then there are the MASSIVE advertising costs of shows and all those wonderful banner ads that reviewers want after they say a few nice words about your product.

The research and development of designing, modelling and testing speakers comes at a costs, like i have seen in a post here, the various parts that you test and then tweaks that are made to drivers costs.

Then take into account the relatively low volume of sales that are made and the ratio of cost vs. margin and you have the reason products are marked up so very much.

For these reasons, i'm cutting out as many of the steps in markup i can (at least for Canada and US) and selling direct and literally 50% of the price that the products now have in a dealer.

But in the end, this is a DIY forum, and it is DIY because all of you know and understand that building it yourself allows for much more learning and eventually a product where the price paid and returns had are better than anything you can buy anywhere.

[cotdt]

I know that German BMW engineers drive Corollas because they cannot afford their own cars. I wonder if the makers of the expensive speakers can ever afford them for themselves.

[Charles Darwin]

I don't think there is a single german engineer (in the german sense ie holding a masters degree) who could not afford a BMW.
I went to school with a kid who ended up working on the assembly line making BMW bike helmets. He has never driven anything but BMWs or Mercedes.
In 2009 BMW put a flyer on all non-BMWs in their staff car parks reminding them that it might be a good idea to drive a BMW. They issued a total of 7000 flyers to their staff of 73000.

Almost every VW employee owns a VW.
One of the perks working for VW is (or was) that they can buy one VW per year at cost (by which I mean actual cost, not dealer prices).
After a year they can still sell them at a profit.

[Pano]

LOL, I have my very nice used Mazda because the original owner got a job at Honda. He was encouraged to buy a Honda.

But in real luxury goods, most of the folks who make them can not afford them. Watches, airplanes, super cars, yachts, clothes, etc. That's pretty normal.

[Charles Darwin]

Since I was on google.de to check the validity of my previous post I came across a story where Opel refused the baker who was supplying their canteen with bread and related products entry because he was using a VW van.

One can push things too far...