Home Speaker Asylum

General speaker questions for audio and home theater.

The usual metric is, "Parts and Labor x 500%"

So, a $700/pair pair of loudspeakers usually has $140 a pair in parts and labor. The rest of it goes to:

1) Dealer Markup and perhaps Importer or Distributor Markup, and possible Sales Rep Commission

2) Manufacturer Overhead (the costs of doing business--salaries, rent, advertising, etc.)

3) Manufacturer Profit.

So, each speaker has a Build Budget of $70. Let's call it $25 for the cabinet and $25 for the drivers, and $20 for crossover, binding posts, the boxes, etc.

Now, perhaps they are cutting their margins and putting more money in the speakers.

But I am not shocked that the mid-woofer cost "only" $25.

john


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