Why so expensive??


I'm siting here Looking at amps,preamps,speakers,etc...and wondering why some of this stuff cost so much.Don't get me wrong i have some crazy expensive equipment,but $350,000 for amps' come on give me a break.$100,000 for a pre-amp'please.There is no way in h#%* it cost even close to that for parts and build time.So why???What NUT whould buy something like this?Ohh it's the same Nut that just traded in his '06 lamborgini for a '08.God bless you folks with that kinda of cash.And by the way when your ready to trade up let me know i will take your used equipment for FREE since you blowing your money anyway.
Thanks in advanced for your used equipment..
spaz
Then how much should it cost? If YOU can produce an amplifier identical to the $380,000 Dynaudio Arbiter for less than one percent of the price, let us know. We'll buy all you can make.

"People that take risks are rewarded - those who do not, covet." (Me)
Dr. Floyd Toole at Harman is fond of pointing to graphs in his presentations that in double-blind testing, the majority of listeners identify speakers in the ~$1500/pair range as "sounding best" and that speakers that cost ~$20K fare as poorly in testing as <$300 speakers.

Granted, I recognize the commercial interest behind his assertions, but it's a point worth considering.

Ultimately, this hobby is a harmless pastime. I don't imagine anyone here is failing to feed and clothe their kids in pursuit of a better stereo, so more power to them if they want to spend their disposable cash on snoochy hifi gear.

Regarding Jwales' comment about relative worth, that's reminiscent of what George Carlin said about drivers.
All these responces and still no FREE audio!!What gives, I thought some rich guy/girl would take me serious or feal sorry for me and give me some wavevac amps.Guys relax on the subject i dont give a hoot what you spend on gear as long as it makes you happy.I love upgrading just as much as the next guy.I tend to spend way more then i should but there comes a point where i just stop. I'm just looking at the whole picture and wondering.When you get to some point in this hobby it's a diminish and return type of deal.For the guy who spends $350,000 for amps is he just doing it because he can or is he into the MUSIC..Isn't that what it's all about...Music
I've had 2 mfgr's say they charge outrageous prices because people will pay it. One said he was charging double what he considered a fair price. If he sold for 1/2 his current price people would not take his product seriously.
Why sell 100 of something when you can make just as much money by selling 50? It's not that big a market to begin with and you may not find 100 buyers anyhow.
I just heard a story about a potential customer evaluating a set of speakers that didn't buy them because they "only" cost about 25K. The manufacturer suspects that if they cost 50-60K there would have been a sale, and many of his customers or potential customers are trying to convince him to come out with a product in that price range.

Now me, I am in the opposite camp. I may spend alot on gear (not in the abive mentioned catagory) but it's simply about performance. I dont like to mention how much my gear costs, (except to other 'philes as a point of reference) because to the general public I look like a foolish, irresponsible A-hole for spending what I do on a stereo that to many people isn't a whole lot different that what could be had for $1500.

As far as the outrageous cost of some gear, there is potentially something to it.

I recently took possesion of a product in the $14,000 price range.

Though it performs excellently, after studying some of the parts, I feel
like I wish some better parts were included, even at additional cost to the base price (and plently of upgrade options are available, some of which were to much $$$ for me (better resistors), and even according to the manufacturer dont always produce a significant sonic impact. They seem to offer some of the upgrades because there are some people who have to have "everything" no matter the cost to benefit ratio.

I would have liked silver Nextgen binding posts (Itself costing well over $100) and premium Acme fuse holders. Now I have to go through the trouble and expense of having those parts added, since I feel they will enhance an already exellent product. To be fair I could have bought the parts myself and sent them to the manufacturer for inclusion in my unit, but I didn't become aware of those till it was too late)

Everything is built to a price point. I would hope however that on some of these Ultra expensive products approaching 6 figures and above, that they go the extra mile to find premium parts in every single catagory, and that to me means including premium fuses/holders and connectors on the par of WBT Nextgens, and the best possible resistors and caps available no matter how small their sonic contribution.

There do seem like some products like the Blowtorch preamp (RIP Bob Crump)
where every single part and circuit was optomised to the hilt.

One exception to all this pricing insanity is the TW Acustic Raven One turntable. The manufacturer and distributors (and even dealers I think) knocked alot off their typical margins just so they could release a world class table at a very reasonable price. They sold a lot of them, outstripping production capabilities. They recently upped the price $500 to help build back in some of the normal profit, but it's still a steal for the sonics attained.

Another example of how costs can escalate is the Tron gear from the UK.
Graham Tricker feels obligated to build every unit with his own two hands,
and doesn't trust anyone to build his stuff other than himself. (Same for Frank Schroder I believe) These guys are fanatics for build quality and tolerances, and their products are priced accordingly, though nowhere near these stratospheric prices we are talking of in the thread. I just point it out because there are only a certain number of man hours per year, and there is a maximum number of units these small shops can produce each year, which has a dollar added value all its own.

Personally I'm alot more excited by affordable and amazing products like PS Audio's $999 DAC and cars like the Lotus Elise which offer supercar performance and looks for $40K.