WILSON AUDIO/ cost vs. value

I find this discussion rather silly. If you don't like a speaker....don't buy it. As to Wilson's profit margin...most companies operate on a similar set of margins within a given industry....which will vary somewhat if the sell directly to the end user...or indirectly through dealers. Part of my experience comes from helping to manage a hifi speaker manufacture...there are certain relationships between the DIRECT cost of goods and the consumer LIST PRICE. Typically it ranges from 4 to 5 times the cost of parts and labor to put the finished speaker in the box. Consequently if a speaker LISTS for $10,000....parts and labor would thus be approximately $2,000....dealers typically purchase the product from 30% to 40% of the list price....and usually the dealer pays for the freight (not an inconsequential item for Wilson Dealers)...thus the Dealer would make $3,000 - $4,000 our of which he usually pays freigh. It costs the typically dealer about 20% of the selling price....$2,000 to pay his overhead and g&a...the sales person is likely to earn about $1,000 on the sale. This leaves about 40% of the LIST price...or in this example about $4,000 for the manufacturer to pay his overhead, g&a, research and development and marketing/sales promotion. This analysis change if you were dealing with extremely high volume sales....but I suspect this is close to the financial model for Wilson....and other quality loudspeaker manufacturers.
I spent a long time before I purchased Wilson speakers...I understand that they may not appeal to all parties...but they work for me and some percentage of the market. I WANT them to make enough money to stay in business...which they seem to be doing...which is important to someone who carefully selects a given product and wishes to keep for a long time.

just my thoughts

I find it silly that you don't like our freedom to speak our opinions. If you don't like them, then don't buy them. Our opinions that is. See the argument works both ways.
Nice day.

hikejohn's cost analysis is quite accurate......i think the heat wilson takes is more about 'performance for the money' rather than profit margin.....a diminished return in this area of course is true with most expensive audio components.......today's advertising campaign focusing on workmanship, performance and low margin seems quite bizarre, given how long they've been around and their wide acceptance as a market leader......ads are generally intended to attract new customers, but these appear to be preaching to the choir.

Profit margin depends on what you claim as your 'cost'. I've worked in the energy industry for 20 years, and realize what a joke it is when oil companies say they are only making a 10¢ 'profit' on a $3 gallon of gasoline. It's because they control internally what they call 'costs' like transportation, refining, marketing, advertising, distribution, etc. When they artificially inflate those 'costs' they can say that their 'costs' are $2.90, when in reality they are internally retaining $2 - split between/within the production company, the refining company, the pipeline, the gas station, etc. Poor guys, only making 10¢ on a gallon of gasoline. Yeah right. And Wilson has the smallest profit margin in the industry.

Westborn, if you think the energy industry is bad BSing their costs, the film industry would make you projectile vomit... preferably into the face of someone like peter guber.