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RE: mixed feelings

The way Magnepan should address this is to offer a standard speaker grade, then a "special edition" with Mundhorf silver and oil caps, or the ones they find make the best improvement for the money, and real binding posts, not the banana-only ones currently on the speakers,and a glue that is good until hell freezes over. I own both the 1.6 and 3.6, think they both are very good, but I have put Cardas rhodium posts on the 3.6 so I can try several speaker cables without having to use banana adapters. A few other tweeks would also be nice to the current line. But the price point is important. The speaker world is competitive, and speakers are not selling a lot. The king of sales, Richard Vandersteen reportedly had to lay off some employees, and times have to be bad for him to do that. He has a reputation of treating employees very good.
There is a general rule in the audio industry that your material cost should not be above 20% of the retail cost. This is to be able to pay for the labor to put the product together, materials, a building, advertising, a sales force, shipping costs, CES shows, warranty service, R&D, etc. and with this margin, many are failing on a business level. One either has to sell more units, raise the price (in a recession...not likely) or build it cheaper. Therefore, for a 500.00 par of speakers, the cost of parts cannot get above 100.00 or money will be lost. Like it or not, business is business, and if one wants to stay in business, some of the options are a little distasteful, but part of this and virtually all industry have to make similar decisions. Jallen


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  • RE: mixed feelings - Jallen 12/28/0917:30:22 12/28/09 (0)

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