Why do so few sell speakers?

Status
This old topic is closed. If you want to reopen this topic, contact a moderator using the "Report Post" button.
Speakers like these Statements are going for $5K, which I never heard but they aren't that more costly to make and I imagine they're even better sounding than my cheaper Finalists for their extra bass extension.
Shouldn't commercially available options have higher value because they're cheaper to make? If that's so why do some people buy these and even costlier pairs instead?
 
If I understand your meaning, a DIY speaker is not supporting anyone's livelihood (well, the driver makers and maybe a kit assembler). I think these days, a lot of expensive goods have a very large markup because a relatively few number of products sales have to support an entire company's staff. Even if the company is small, you need a fair amount of profit to do that.
 
I think that maybe what the OP was getting at is why don't speakers exhibit the low prices and high value of mass production. The answer is they aren't truly mass produced. The portable, rechargeable Bluetooth speaker at your big box store is though, and you wouldn't be able to TRULY replicate it for the price you pay.
 
Let's put it like this: why make diy speakers let alone buy from someone a diy speaker when mass produced option cost a lot less
Yes, this! I started on my path to become a loudspeaker design engineer as a hobbyist, precisely because I could not afford big, loud speakers but found David Weems' book and realized I could build such more cheaply.

That is no longer true. You simply cannot duplicate the products in the mass end of the market more cheaply any more. Heck, you can get decent speakers for $29/pair shipped! DIY is now about the satisfaction of making something yourself, or making something unique.

It's also a good point that small-volume companies have much higher materials costs versus high-volume.

Imagine you decide to start a speaker company, and want to make a profit of $300,000 per year to support a small team for building and sales and support. At the low end of the market, maybe you could only net a 30% net profit on $100/pair speakers let us imagine. You would need to sell 10,000 pairs-that would be very very difficult for a new company. Or suppose you decide you are only going to sell 10 pairs per year, and price them at $100,000 a pair. That is $1,000,000 gross, and 30% profit would cover your $300,000-plus at that end of the market you can perhaps get well more than 30% profit especially if you sell direct.
 
Imagine you decide to start a speaker company, and want to make a profit of $300,000 per year to support a small team for building and sales and support. At the low end of the market, maybe you could only net a 30% net profit on $100/pair speakers let us imagine. You would need to sell 10,000 pairs-that would be very very difficult for a new company.
Yes, yes, capitalism's Achilles' heel.


Let's take a specific example, can you build the Statements II for cheaper than available commercial options which perform at least as good? Materials: $956 for the electronics (BOM: http://speakerdesignworks.com/files/Statements_II_Crossover_Meniscus_BOM.pdf)


Cabinet specs:

Speaker Design Works


Assume you already have the tools.
 
Now that we see what you are getting at, yes this topic has been discussed many times.

DIY audio is indeed more expensive than buying. Just about any seriously dedicated member here has spent far more than just buying a system or two, if they are honest and include ALL purchases.

What bothers me about that is that there are members with commercial interests who try to propagate the illusion of a bargain to further their own interests.
 
Well, it depends on how deep you go :)

And that assuming you have the capital and knowledge, othwerwise it´s futile.

If you buy speakers over the counter you are already paying 3X to 6X the actual manufacturing cost, simply because they go through many hands, each getting its share adding markup in an exponential way.

If you buy wood and supplies at retail prices, same thing, although in this case the chain is shorter and has fewer links.

And then you must have the machinery, working and storage space, etc.

And even if at the end of the year balance sheet shows a profit, there will be many negative cashflow weeks or months in the middle and you must have enough backup capital to survive that.

Did I mention you must establish "a Brand" and gain recognition for it?
Unless you are Chinese and sell without it, just because of your impossible low prices ... not the case here.

Personally my main business is Guitar and Bass amplifiers, and a strong component is making my own MI speakers.

Now when suitable Celestion speakers cost between $65 and $120, average ones around $85/90 and suitable Eminence ones cost between $50 and $90 or so , add to that 60% to 90% freight, import duties and Tax, then it is very good business for me to be able to build the functionally equivalent ones for about $35 , no Customs, no Freight, no Tax, and all I want or need.
Typically in 100 unit batches, a couple in 50 unit ones if it´s a model I do not use too much.

Not my main product, which is the fully finished amp or cabinet, but selling some of them on the side (at full retail price of course) helps keep the speaker sideline running smoothly and self sustained for my own use.

But then I stamp my own frames, turn own plates and polepieces, solder and galvanize them, etc.

Yes, making a couple speakers , is technically possible even for the individual DIYer IF he lives in an Industrialized Country where he can get access to aluminum foundries, lathe shops, etc. and he still will have to magnetize it at some point, but in that case it´s justified only if you are making something impossible to get in any other way.
 
Last edited:

rif

Member
Joined 2003
Paid Member
Well, it depends on how deep you go :)

And that assuming you have the capital and knowledge, othwerwise it´s futile.

If you buy speakers over the counter you are already paying 3X to 6X the actual manufacturing cost, simply because they go through many hands, each getting its share adding markup in an exponential way.

If you buy wood and supplies at retail prices, same thing, although in this case the chain is shorter and has fewer links.

And then you must have the machinery, working and storage space, etc.
.
.

Don't forget to build in the costs of mistakes - a bad cut or finishing error (veneer/staining) can ruin some or lots of $ on materials. Unless you gear up to make a pseudo production line, which has its own costs too.
 
Are you kidding? Have you never read one thread on cables or blind testing?

What I mean is, you can see who is busy flogging their wares around the forum, no illusions just plain talk. They add energy and diversity to the forum.

I don’t usually bother with the cables threads, as I’ve long been of the opinion that most of it is a load of codswallop and the bits which aren’t are lost in the noise so best ignored.

Blind testing, well yes, I didn’t think about one!
 
Last edited:
Status
This old topic is closed. If you want to reopen this topic, contact a moderator using the "Report Post" button.