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SEVEN YEARS AGO the North American importer had an unworkable business model and tragically underpriced...

I don't recall what the C7s cost 7 years ago, but I am sure that is when Winter Tree Audio had North America for Harbeth, because my writeup of the M40s ran in the October 2002 issue of Stereophile.

The proprietor of Winter Tree was a nice guy, a true believer, but, I saw a train wreck coming, in that I think he tragically overestimated pent-up demand. If one does a Vulcan Mind Meld with a certain famous Harbeth booster/audio scribe, you are at risk of coming away with the idea that everybody from Helio Castroneves to his dancing partner are going to be lining up waving cash at you to get their pair before Jimmy Carter gets his, and it just ain't so. Harbeths are an acquired taste and a minority enthusiasm.

He priced the M40--7 years ago--at $6949/pr., which meant that for every pair he sold he had about $1348.00 with which to pay customs, insurance, and freight, and rent, and utilities and insurance and advertising and travel and entertainment, etc.

Perhaps if the US MSRP on the C7s in 2002 had been $2750 or even $3000, he might still be in business and might still have the line.

An importer has to do it all on the 20 points between importer cost and dealer cost. The dealer's theoretical gross is double the importer's.

I myself find the C7 to be very fairy priced and verging on a bargain. I can't think of a speaker at $3500 I'd more highly recommend to a mature classical music lover (although I have yet to hear the ATC SCM 19).

So, there's your so-what. Assuming your recollection is accurate, both the $2000 C7 price and the $2500 price were too low, as proven by the fact that the importer who set those prices could not stay in business.

Loudspeakers are to a certain degree like musical instruments--nearly everything matters as far as influencing the sound goes. I doubt that a factory in China or Taiwan could knock off the Harbeth Compact 7 and sell it here for half price. My experience with the GINI "LS3/5A" non-clone convinced me of that.

If you think Harbeth's pricing is a ripoff, don't buy them. I think that most manufacturers price things fairly, taking into account R & D costs. If you want a wooden boat, be prepared to pay for one, and don't whine that wooden boats cost more than plastic ones--IMHO.

JM


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