Speaker Asylum

General speaker questions for audio and home theater.

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

Posted by Ian Mackenzie on November 16, 2012 at 07:00:29:
Wow, I have not posted here in over 3 years, but the debates continue.

I own a pair of Harbeths (Compact 7 ES3) with an LFD Zero mark III amp and am looking to upgrade to the new 30.1s. Yup, they are spendy for sure and close to $6,400 for a pair in Rosewood.

I own a business that does substantial revenue in US and Mexico and Europe and could disect margins, COGS and revenue ratios until your head spins. What I simply do not grasp is the:

1. Price in the UK (3,000 pounds or $3,800) versus:
2. Price in US @ ~$6,000.

Shipping I undrstand, but the rest must be used as distributor margin before it gets to the reseller and that's the disconnect for me. Asuming Harbeth has a transfer price (from factory to US distributor) at equal to what the trasfer price is from factory to UK reseller, then the metrics here are clearly off base and Fidelis is making a healthy margin and I would imagine Harbeth still covers much of the advertising and marketing spend.

These speakers should be around $5,000 in US tops.