Speaker Asylum

General speaker questions for audio and home theater.

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Do you know anything at all about how the industry works? It sure seems not!

Posted by John Marks on July 24, 2012 at 16:20:25:
Harbeth has to own or rent capital assets that allow it to build the loudspeakers, it has to stock raw materials, pay employees, and comply with local and national government requirements, and pay insurance and taxes, as well provide sales support materials and corporate communications.

OK, let's say a certain loudspeaker has a US retail MSRP of $6000. How much of that does Harbeth get? By standard metrics, $2,400. And out of that $2400, they have to pay all their bills, their taxes, and take home a profit, and then pay taxes on that.

So, from Harbeth's standpoint, it is not a $6000 transaction, it is a $2400 transaction.

I challenge you to build a loudspeaker that good, and do as good a job of nurturing a classic brand's heritage, on $2400.

And before you yell Ripoff, please remember that the US importer has to pay for half a dozen trade shows, its own overhead, national advertising, handholding retailers and customers, etc.

And dealers earn their margin, what with non-buying customers who should be in therapy instead of stereo stores, and even better, the ones who borrow the dealer's investment to decide what to buy, and the disappear and use the internet.

If that speaker isn't worth $6000 to you, don't buy it.

I myself have not heard that one, but I think that the P3ESR is one of the true bargains in audio today.

JM