I've avoided this one, too, but...
Active digital crossovers (and room correction) are a more recent innovation, so there's been some recent technology developments out there, but Tim's point is mostly taken.
IMO, there are few innovations that justify the price increases we've seen over the past 25 years. Active speakers (particularly if multiple channels of amplification are included) might be a partial exception, but overall - I've got to believe that it's largely margin. I find it next to impossible to attribute the cost of most contemporary loudspeakers bearing a five (or six) digit price tag to parts, or manufacturing overhead, or R & D, or inflation. Gross margins on those products have to be very high on average.
That doesn't mean the manufacturer is getting rich on them, either. If he sells three pairs a year, the fact that each pair bears a healthy mark-up isn't going to buy that mansion on Maui. Small volume companies need higher margins to survive, but it doesn't change the fact that margins are high. The specific question from the OP is legit: They may not be the priciest speakers out there, but I'm pretty confident that Harbeth makes fat margins on each sale.
BTW, that doesn't mean people shouldn't purchase a pair if they like the sound and/or look of them. That's also true of a six figure loudspeaker. Porsche has very high margins for an auto manufacturer and not too many folks belabor that point. Designer furniture (and that's a big part of what a six figure loudspeaker is) also routinely commands prices that you don't want to justify on a cost of manufacture basis.
People enjoy all kinds of high margin purchases. I just think they shouldn't try to justify the purchase by wishing away the mark-up.
Active digital crossovers (and room correction) are a more recent innovation, so there's been some recent technology developments out there, but Tim's point is mostly taken.
IMO, there are few innovations that justify the price increases we've seen over the past 25 years. Active speakers (particularly if multiple channels of amplification are included) might be a partial exception, but overall - I've got to believe that it's largely margin. I find it next to impossible to attribute the cost of most contemporary loudspeakers bearing a five (or six) digit price tag to parts, or manufacturing overhead, or R & D, or inflation. Gross margins on those products have to be very high on average.
That doesn't mean the manufacturer is getting rich on them, either. If he sells three pairs a year, the fact that each pair bears a healthy mark-up isn't going to buy that mansion on Maui. Small volume companies need higher margins to survive, but it doesn't change the fact that margins are high. The specific question from the OP is legit: They may not be the priciest speakers out there, but I'm pretty confident that Harbeth makes fat margins on each sale.
BTW, that doesn't mean people shouldn't purchase a pair if they like the sound and/or look of them. That's also true of a six figure loudspeaker. Porsche has very high margins for an auto manufacturer and not too many folks belabor that point. Designer furniture (and that's a big part of what a six figure loudspeaker is) also routinely commands prices that you don't want to justify on a cost of manufacture basis.
People enjoy all kinds of high margin purchases. I just think they shouldn't try to justify the purchase by wishing away the mark-up.
