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RE: Wow interesting.

Those $80,000 systems don't reflect anyone making insane profits, even though it seems that way. The dealer probably sells 4 or 5 of those things a year. He'll have about a 40% markup, so he's making about $33,000 on the sale. While 5 sales at an annual revenue of $160,000 sounds like a lot, he has to pay for floor room space to show it, salaries of sales people, etc. Nobody in the hi-fi retail biz gets rich. Most of the sales people can't afford the hi-end gear they sell, even at the sizable discounts they get.

Then the distributor gets about 30% of the retail sale price, but he's not getting rich either. The manufacturer then gets only about 30% of the retail price, or about $24,000 of the original $80,000. He probably sells 50 units per year, or about $1,200,000 in revenue. Out of that he has to pay a number of people, rent, utilities, materials cost, R&D, etc... Nobody is getting rich.

Where we as DIY guys make out is that the R&D has already been done for us by Siegfried Linkwitz, who's one of the very best audio engineers on the planet. So all it costs us is materials and labor.

There's a guy in Healdsburg who's been doing custom builds of the Orion design for years. I'm sure he'd be happy to do a custom build of the LX521. He sells the Orion for $15,000, including amplification I believe. I'd expect the LX521 to be priced in the same ballpark. He has to charge for his time, premium materials, expertise, shop time, etc. He makes a reasonable amount on it, but he's not getting rich either. Not at the level of workmanship he provides.

That $15,000 is actually the manufacturer's price. So now add on 30% for the distributor and another 40% for the retailer, and you've got a retail price of about $50,000. So yeah. Building your own is one heck of a deal!

Go for it Dude!
Russ

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