In Reply to: 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:
as are a lot of people in this thread. Except for lawyers and the local public utility power company, nobody should measure price (i.e. "value") based on the cost of inputs.
The relevant question is what else is available for this price, and does that "else" sound better than the new Harbeth. If there's nothing else that sounds as good (and don't make me define "good" in this usage), then the new Harbeths are fairly priced. And if there are speakers out there at 1/2 the price that sound as good, or better, then the new Harbeths are overpriced, even if their gross margin is only 10%.
One thing I've noticed is a tendency in this business to try and justify the price of a product by reference to its exotic and expensive inputs: rare metals!, gold wiring!, handmade! with the implicit assumption that there's a direct correlation between the cost of the inputs and the output. In some cases, there certainly is, but I refuse to believe that is always the case. I have heard some awful sounding speakers that featured lovely cabinetry, expensive parts, the trendiest design (first-order crossovers, yeah!). Most reviews of them -- and they were widely reviewed -- were, in my opinion, "kind." But the company has been out of business for a number of years. My point here is that these speakers may have been fairly priced, based on the cost of their inputs; but since they were not a good value, they failed in the marketplace.
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Follow Ups
- looking through the wrong end of the telescope - Bruce from DC 16:02:27 08/07/12 (1)
- RE: looking through the wrong end of the telescope - rebbi 20:52:41 08/07/12 (0)