High End Speaker Prices


I thought the community might find this article on the BBC website interesting.

http://www.bbc.com/future/story/20150813-in-search-of-the-perfect-sound
rshad0000
I couldn't agree with Jond more. Most of our hobby it seems depends on firms with only one or two people behind them, though they appear to be major players. It is obvious when tragedy strikes or one simply retires. The lack of high volumes makes much of what we admire very expensive.
It does raise an interesting point though, would high volume make something no matter how good it sounds a new "mid fi". I read some one describe McIntosh as being solid mid fi equipment despite its hi end cost.
09-17-15: Mapman
Quality comes at a price.

...and value is determined by price/per/quality ratio.
The smallest ratio usually best.
Better sound is in the ear of the beholder. Generally the cost of goods for any high end speaker is about 15% of its MSRP. After that, costs can go anywhere. Some high end speakers are embedded with about 40% of marketing and distribution costs. Certainly low volume, like anything else, will lead to higher markups. Hearing is believing.
Adding to this... I work for a very high end luxury wine producer we have a wine that sells for $425 per single bottle, and we're launching a new one in 2017 that will retail for $600-800 per bottle.

It's a different market and mentality, and different metrics need be applied. Something a this level is ultimately worth what someone is willing to pay for it, and the best wines are from a small plot of land that can't be reproduced anywhere else.

FWIW - our cost of goods is btw 21-23% of retail.