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General Asylum General audio topics that don't fit into specific categories. |
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General Asylum General audio topics that don't fit into specific categories. |
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In Reply to: Yesterday, I left a $750 item out at the curb,... posted by Bambi B on July 7, 2006 at 11:29:22:
Your points are generally sound, however I think there is one important distinction. The majority of high end manufactures are small businesses with the owner being the designer. The design cost are generally the owners time. The owners time, in my opinion cannot be viewed in the same manner as you view the R&D from say Ford or Sony for example. They have massive amounts of overhead, people, engineers, etc. For the owner/designer of a small audio company they have production lines that are bringing in cash flow and also which comprise the vast majority of thier variable cost. The R&D is the owners time sitting on his/her workbench for which he/she is rewarded through the ongoing profits of the company - if it is succesfull.I am not saying it's an easy business by any means, but I don't think R&D is the reason for the high cost of audio. I believe it is more a matter of low volume high margin - you don't sell many units so you have to make your $$ on the units you do sell.
Some examples you share about Ray Kimber do certainly have tangible cost associated with them, however I can assure you that succesfull cable companies are making HUGE margins on thier products - HUGE!!
By way of note, I have several friends that are buyers for a very very large national big box chain - thier highest margin product by far is cables, especially Monster. Second is computor printer cables, then accesories like batteries, hard drives and stuff like that. The mark up on cables can be as high as 300%.
Ray ain't hurting!
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Follow Ups
- Bambi- I agree to a point - groove 07/8/0608:44:34 07/8/06 (0)
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