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Got to know the business end of the stick

What the parts cost, and what the product sells for often bear no relationship to one another.

It is not at all uncommon for appliances, clothes or other consumer products to sell for ten times or more what the materials cost.
These are mainstream consumer goods, manufactured in quantity and with every cost reduction benefit known to man and machine.

See:
http://www.AudioAsylum.com/audio/cables/messages/34038.html

Given the manufacturing methods of the high-end, $15 worth of parts can easily turn into a $300 retail price. This would be with what are considered "normal" profits for a manufacturer, nothing out of the ordinary at all.

What my referenced post and comments above refer to, are typical industry mark-ups of 50% to 100% throughout the product distribution chain.

Tell me, why should anyone manufacturing an audio product take LESS profit margin than someone else making blue jeans or refrigerators?


Jon Risch

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