Why speakers are so expensive

[@gogo-fk1lu]

For about 1000-1500$ you get already decent speakers (a pair), of course for some people this amount is already too high. When it comes to purchasing hi-fi equipment, we can get confused very quickly and when we buy a certain item, we are sometimes disappointed because more expensive does not necessarily mean better.

[@turboboost99]

This is one reason why I love Magnepans and other panel speakers. Nearly all the expense is in the drivers and crossover. No fancy boxes to build. Open baffle speakers too.

[@bayard1332]

Go ahead and design and build an open baffle speaker capable of 120dB output without baffle resonances and with epic sound down to 20hz and then get back to me on how simple easy and cheap it is to build open baffle speakers.

[@musicman8270]

One word can help with speaker prices.... closeout. My left right speakers were 6500 a pair, I got them for 4800. The center was 1200. The subs 1600 a pair. On a 7.2.4 system the main cost of my 30 grand system was speakers. But closeouts really helped. Learn how to shop.

[@Bassotronics]

There is a lot going into those cabinet / boxes because they need bracing to avoid flex etc. Do a tube system and you eliminate all that weight and issues while reducing the price ten fold. 🤷🏻‍♂️

[@zeusapollo8688]

Almost done with a project like that. Most expensive part was the metal hardware.

[@mariocassar3117]

Include up to 50% commission for the dealer, and then price is directly proportional to power handling and the number of drivers. At the end, we audiophiles are paying 10 times of the actual cost of the unit.

[@scottyo64]

People often confuse the price of materials being a driving force. There is so VERY more more involved

[@randolphblack2554]

Something similar applies in the Food Service industry. If something is made for that industry the price doubles and then doubles again if it is stainless steel. And if it is sponsored or used by a famous chef then the price doubles again.

[@thefloop2813]

Ps audio doesn't use distributors. They use dealers but often sell cheaper then them themselves, and They also offer a buyback/upgrade/refurbished program that deliberately devalue their own equipment in the used and dealer markets so people who can't normally afford the gear can, even if not from them. If you call them, they will even let you do a layaway. I think the only reason they evn use dealers at all is so that people actually might be able to hear their gear before buying. I wish more companies were like PS Audio. Have you seen cross sections of the cabinets and woofers? Have you seen the crossovers? Do you know how long a box like this made by hand takes to build? hour wise? They aren't building chicken coups man. (something that can go for nearly $10k for a good one, when buying quality hand-built product) Do you know how much a hand made carbon fiber bicycle cost's to make? What about a 59" les paul from the custom shop made by tom murphy over at Gibson? I have/do. Im guessing they double their money per set tops. And a 30K speaker system from a small private company doesnt fly off the shelves. a $3k speaker doesnt fly off the shelves. that likely 10-15K they make per speaker pays business zoning overhead in boulder, CO. Very expensive. They have liquid inventory and a wearhouse to stock properly for what they are doing. There is literally a team of people getting payed to be at the top of their game, to be experts in a particular field of study as well at practical application. Expertise doesn't come cheap. And just like in a notoriously difficult private restaurant (in the food industry, you are ripped off by business suppliers and maintenance technicians, and customers that will not tolerate the margin you need simply to keep open let alone live comfortably) The crossover components alone, for one speaker as implemented, will cost you about $1200 to make yourself. Idek how they managed to get the woofers manufactured. Things of genuine mechanical beauty with many genuine and unique design characteristics and theory implementations. There is probably $5k in the material procurement cost alone of a single FR-30 speaker. And yes, like Paul says in some videos, this is why the woofer had to be re-engineered to get the cost down on the smaller fr20/10/5s. We're lucky enough people tolerate prices like this so speakers this good can even exist at all. Paul was far, FAR more then what a set of speakers cost invested into paying his experts to design them alone by the time they had the first set sell, it wouldn't be possible not to be. The FR project may have not even broke even yet, we don't know how many set's hes sold. I know there were people being payed a wage to design the best speaker possible for literally years before they had a speaker to sell. Chris Brunhaver, being an expert in a field, in Boulder, probably makes a 60-80k salary a year, likely more. With Chris alone Paul was likely nearly a quarter million invested into this project before the first speaker sold. Chris didn't do it by himself either. When you are a private busine/company, not a publicly traded corporation, general business overhead and R&D cost is a much much larger chunk of your profit margin. 30K is not a bad ask for these speakers at all. I'm surprised they aren't $40k with what i know went into them. Not all $30k speakers are that way, but these are. Like most, I can't afford them either, wish i could. Have you heard a speaker like an FR30 or IRSV in person and internally grappled with the fact that what you are listening to was made by hand from the instruments to your ears to be as beautiful and magnificent as is possible for no other reason then it can be? A speaker like this is a near perfect fusion of art and technology, designed and hand-made by craftsmen, scholars, and lovers of the fine arts. It's going to be very expensive. You can't have something like that without it being very expensive, unless ya make it yourself. Would you compare a cheese bread and Gatorade from little ceaser's on a park bench to an authentic flatbread served on the shores of the Mediterranean at sunset over a glass of Dom Perignon?

[@RickMahoney2013]

Tell us what the markup is and let us decide 😢

[@Rowuk2024]

Speakers are not expensive. Our perception of value has deteriorated. We can have speakers for $50. The true cost of a loudspeaker however, is the R&D that is HUGE for any really high quality design. Then factor in warranty, shipping big boxes and not last, enough profit to insure that the company (and the qualified designer) is around in a couple of years.

[@housepianist]

Speakers can most certainly be expensive. But they can be cheap as well. Value is what you get out of what you spend. $30,000 for a pair of speakers is expensive for most people, regardless of how good or bad they sound. If they sounds really good, you could say that perhaps that price makes it a good value but of course if they sound bad, then perhaps that’s not a good value. The same logic would apply for a “cheap” pair of speakers as well. Regardless, $30,000 (or any amount relative amount) is still a chunk of change for most of us no matter what it’s used for. It’s just easy to justify that amount if the perceived value of what it’s getting is worth it.

[@gullrockgeorge9057]

As soon as I saw the title of the video, I was saying "It's the enclosure", to myself. Those boxes take time and that means money. As someone who has DIY'd a fair number of speakers over the years I've found that driver prices are quite reasonable , and the cabinet materials aren't costly, but you use up a lot of hours of time to build and finish the cabinets for even a 2-way monitor. When you think about paying for all that labor, you can see how costs rise quickly. Certainly a manufacturer gains efficiency by scaling up to make many pairs, but it still adds significantly to the final cost.

[@daiblaze1396]

With modest size speakers the crossover components are the most expensive in the build. I was amazed to see that some are twice as expensive as the drivers. No idea if it is worth it as I have never build one yet but it does make sense that quality parts produce better sound.

[@pobodyisnerfect]

I agree 100%. I also do DIY Speakers and other types of woodworking. It's all about the labour! Glossy finishes multiply the cost.

[@RWmHII]

Interesting comment about the cost being mostly in the cabinets. I'm learning to make my own boxes, and fill them with good quality components.

[@crimlarksSteve]

I had a pair of Infinity QLS II speakers for many years, until the woofers fell apart. Had them for a couple of decades. Loved those speakers - paid about $1200 for them thru the Army's Audio/VIdeo center in Germany when I was stationed there. Ran them on a pair of bi-amped GAS Son of Ampzilla amps. I lusted after the IRS speakers but they are/were out of my league in so many ways. Infinity was a class company. I wrote to them asking if the GAS amps would be a good match for the QLS II's and Arne Nudell wrote back to say yes and to recommend hooking one amp per speaker, with one channel for bass and the other for mid/treble. I also had the Infinty Black Widow tonearm on my turntable.

[@spacemissing]

Some speakers that sound very good aren't expensive in relative terms. These days I tell people, if they ask me about the subject, that new speakers of truly respectable quality cost at least $700 per cabinet, and those that are good enough for casual listening cost at least $200 per cabinet. Spending less than that is OK if the limitations of such models are understood and acceptable.

[@gotham61]

Seems a stretch to compare the build cost of the IRS V which was hand made in California using exotic wood veneers, and the Aspen series speakers which use painted MDF cabinets and are made in China.

[@SinusPrimus]

I`a m speaker builder for many years and i totally agree with Paul. The cabinet is the most expensive part of a loudspeaker. And it makes e difference if you buy a speaker from a big or small manufactor. It`s a question of large or small quantities too. That`s the reason why i build my speakers on my own. Greetz from Switzerland.

[@pobodyisnerfect]

It's all about the labour. Glossy finishes also tend to multiply the amount of labour involved.

[@hugobloemers4425]

The big question remains is if: The FR30 cost 30k; the FR20 cost 20k and the FR10 cost 10k, why does the FR5 not either cost 5K or is called the FR3? Does that make the FR5 a loss leader? Any way, speakers are expensive because they have fancy cabinets, that's the take away message. And I get it. Nobody is going to accept a bad fit and finish on a high end speaker, even though it does not mater for the sound. So in order to sell them, they are made like bespoke furniture. Nothing wrong with that, it is also what makes DIY attractive to some of us.

[@vanderpoolfarmsl.l.c.9983]

Bought a pair of McIntosh ML-2C speakers in 1975. They are still in brand new condition I'm sure there may be speakers that sound better; I just have not heard them. Buy once / buy for life!

[@davep2945]

High end or specialty speakers can be expensive because, well, the market allows them to be. At a certain level it's no longer the average enthusiast buying these speakers. It's wealthy people who may or may not be true audio enthusiasts and since they can afford high prices then the builders of audio jewelry will build them audio jewelry. That doesn't mean the high end products don't perform well, they usually do. But does a $30,000 Aspen outperform a $6000 pair of another brand? And if it does is there really $24,000 worth of difference? When you make the move to integrated amps versus a far better equipped AV receiver you pay a premium. When you make the move from integrated to separate amps you again pay a premium. Often there is a sonic advantage but for the average Joe we're splitting hairs they don't care about. So a manufacturer knows that if someone is interested in a separate amp or even an integrated they are an audio enthusiast or audiophile and likely to pay more money for these more specialized products. Of course, selling less of a product increases it's price due to lower volume. Same rules apply to higher end speakers.

[@kx8960]

I listened to those on a tour there in maybe 2014, it was an otherworldly experience. I'd always LOVED Infinity speakers, and had a great set in my car in the late '80's, and almost bought a set of Kappa 9's back in the early '90's for $1,500! I didn't have the money then, and TOTALLY regret it now. So, seeing the IRS V system at PS Audio was like a dream come true. Sadly, Paul wasn't there that day so I didn't get a chance to meet him.

[@Roof_Pizza]

Wait for sales and be ready to pounce. My well-reviewed speakers were 67% off. 30% off isn't uncommon esp when the new series comes out. Klipsch's joke sales are as legendary as their inflated stats.

[@hochhaul]

Yeah Harman has had their Revel F208 and JBL HDI-3800 discounted by 30% for the past month. Lots of great opportunities for beginners to catch deals at the right time to improve their system on a budget.

[@PSA78]

There's several brands that really embrace false economy as well, they rather spend money on selling them then making them. If you got tools and don't mind getting your hands dirty, then you could make some really amazing DIY speakers for say half the cost of some. If you add a good plate amp with DSP, then in some price segments you could probably knock a zero of your system cost. Kind of unique at this point in time, HiFi gear is kind of in the golden age for DIY. 🙂

[@chuckmaddison2924]

I ask my self the same question. I can understand some of it. But if enough of a product are made and sold price comes down. Eg compare Ford to Rolls Royce. I do realise RR doesn't look for the cheap way, and Ford has never offered Diplomatic service.

[@TheDanEdwards]

"Expensive" is a relative term. In most major urban areas on the US west coast, a run down old house costs $500/sq.ft. to buy, a newish high-quality house is $1000/sq.ft. The floor space for a two channel system will cost more than most of the equipment that is placed on it.

[@toecutterjenkins]

I can tell you when i built my little gr reseach xls encores. The kit was 300, maybe another 100 to 200 in material, and if i were to charge labor, it would be at least 600 for building and finishing, which was a lot of work .

[@lights80088]

Paul, you didn't mention recovering engineering cost?

[@Acoustic-Lab]

yes.. at the end very expensive to build speaker box especially in the finishing yet crossover componet are expensive too

[@Mikexception]

Mr Faber who is selling one of most priced speakers claimed in past that before he went to market he build 300 speaker enclosures. Result worhy of it's effort is worthy tp pay. Prices cannot be defined by cost of materials , elctrricity and employee pay roll. If we would pay to say Rafael for his painting this way than it could be realy good offer. .

[@flargosa]

I thought the drivers were the most expensive part of the speaker.

[@sidesup8286]

Anyone ever think of cardboard spkrs? If wood or mdf cabinets are so expensive. How would they sound? Maybe even the shipping box could be turned inside out. Now for those of you who laugh, consider this. Rogers, a very good British speaker company did much experimentation on using extremely thin wood for speaker cabinets. I had a Rogers LS2 with very thin wood and I think it was the most characterless cabinet of any speaker I have ever owned. It's bass was fine for its size too, and I heard no cabinet resonances. The very first speaker I ever built was a cigar bos which I made a 5 inch hole in the back of it and screwed a full range driver into it. At 13 years old I was a hit. It sounded way better than the 3 inch drivers of others with speakers, around my age. I thought of taping the cardboard cigar box shut, but I heard something about vented speakers. The wider I opened the back, the more efficient it sounded, but the more I open I let it be,, the less bass.I found a happy medium with it open in the back just a bit. No, speakers don't have to be expensive. I don't remember the cardboard cigar box having resonances like wood or mdf After selling the cigars which were inside it to someone, the money paid for the driver, and then some. So the speaker was FREE!

[@christophero1969]

Good answer, again.

[@4leggedfurball]

Supply, demand, and equilibrium.

[@John-Edward]

I just wish PS Audio could at least Assemble their speakers in the USA instead China! With CNC Tech you would think they can be made here in the USA since machines aren’t paid an hourly wage? 😂🤔🤪

[@tombaker2780]

We had a pair of these at Precision Mastering in Hollywood.

[@G3rain1]

Could you recreate the IRS5 with modern planar drivers like are used in the FR40?

[@gotham61]

They are essentially still being made today as the Genesis Advanced Technologies Prime.

[@ignicioperez4647]

Hi Paul, I’ve been suscribed to your channel and I really enjoy your videos, always very straightforward, down to earth and very informative. Do you have any views on vintage speakers? I ask because I have a pair of Spica TC 60 (bought them about 26 years ago) and I really enjoy them and think they are still great value (also had the Angelus)! Would you recommend thinking about replacing them? Thanks a lot and a very merry Christmas from rainy Brussels. Ignacio

[@egi75]

well, Paul, I most certainly would enjoy listening if you explained the efforts going into a cabinet in more detail ;-)

[@davenelson4334]

It's the cabinet/enclosure

[@alfredrasay8019]

Merry Christmas Paul :)

[@philipslighting8240]

NO some are VERY expensinve and OVER ENGINEERED . Some do not need to be expensive as they sound great and are well engineered.

[@hemihead001]

Why doesn't anyone make a good 3 - Way any more ?

[@TheDanEdwards]

"Why doesn't anyone make a good 3 - Way any more ?" - Your assertion is false.

[@Skye_the_toller]

This THE point… how much you pay for the art finish of the enclosure… how much for the real things that matter… driver, electronic, conception, etc…

[@peddie1972]

You get what you pay for?? Even with the FR 10’s 20’s and 30’s there must be a point of diminishing returns!?

[@rondriver5858]

Those two large oval shaped structures didn’t look like loudspeakers, they looked more like a door to a lift shaft, I suppose the people that can afford these crazy large speaker systems don’t live in a council flat! Not that you could get them through the front door, but large country mansions with huge front entrances and high ceilings.

[@bobbg9041]

Whats wrong with MDF Plywood has voids voids in the wood is a problem. MDF is solid its hard and with bracing doesn't flex or create side sounds. We don't have the 10k year old trees used to make a stratavious the closest we can get in denceness is carbon fiber I don't think any trees are alive to day with the growth rings used to make that prized violin So its not as much as the material as it is acoustical engineered. And yes some drivers can get expensive but if your making the drivers you can set your own parameters 5k 20k 30k a pair of speakers, but it all depends on your age and hearing capability. As well as the rooms acoustics.

[@pobodyisnerfect]

If people weren't particularly concerned about having glossy finishes I would imagine that a lot of speakers out there would cost much less than they do.

[@davidlane1169]

'Ole Audiophile to Paul: I'll state the obvious, speakers are not expensive. One can purchase speakers like Polks or Klipsch in box stores for far less than implied. Both companies make great speakers but inexpensive they are not meaning one gets exactly what one pays for in a speaker purchase for the most part. Speakers can be cheap but good ones are not. Much has to do with the materials they are manufactured with & the exacting quality of the craft. For the most part, a speaker purchase is for life for many of us so there's not particularly much turnover if one purchases a wunder set. I still own my first set of Cerwin Vegas, but they are over 50 years old & thoroughly retired several times over since they've been re-gifted back to me. Take your good ole' time picking your speakers from the fray because one is more than likely to spend the next twenty years or more listening to them. Thanx

[@davidlane1169]

Prime example: those Infinity towers Paul is pictured standing in front of are over twenty years old. Think he's desiring to replace them? Not on your life... (He's probably figured a dozen different 'better' ways of powering them using improving quality amplification. They were designed 'cart before the horse' by engineers that bet on the advance of amplifier technology that would eventually power them up correctly.)

[@Evil_Peter]

@@davidlane1169 He's not getting rid of the Infinity IRS speakers but he has replaced the drivers as the originals did degrade with time. He also has replaced them in terms of being PS Audio's reference speakers. As a company they have to try to evolve to stay in business. I certainly support the idea to try to buy for longevity as a consumer though. It's so easy to just keep chasing something else in the audiophile hobby.

[@davidlane1169]

It's only been 46 years of mariage so my suggestion is it would be wiser to ask her. Living within one's limits enhances one's life, it sure cuts a good percentage of the stress dealing with finacial ruin. Thanx I guess?@@funny0000000

[@NoEgg4u]

@0:49 "This is a $100,000 pair of speakers." When they were new. I doubt that they would sell for even ½ that, today, when our host's own Aspen FR30 speakers sound better, at less than 1/3 of $100,000. Perhaps they are a collector's item, that someone would pay $100,000 for? For roughly $40,000 you could own a pair of Vandersteen Kento speakers. Or how about a pair of Graham LS5/5 speakers for roughly 1/5 of $100,000? All of the above will sound better than our host's IRS V speakers. There are dozens of speakers at ¼ to ½ the price our host claims the IRS V's are worth, and all will throw a more coherent, realistic soundstage. The IRS V's will do a better job at deafening decibel levels. But for $100,000 there are other speakers that will rattle your walls, and sound better. The IRS V's are decades old. They simply lack the realism that today's high-end speakers have. They sound great, until you hear what you can get for the same price, today (or even 1/3 that price, today), if you choose carefully. Visit PS Audio. Listen to the IRS V speakers. Then listen to the FR30 speakers. If you could have either pair for free, you would take the FR30 speakers. So how could the IRS V's be worth $100,000 when our host's own FR30 speakers are $29,000?

[@gotham61]

Those IRS Vs are not hooked up for listening. They're just being stored there. They were never $100K new. Over their production run they went from $50k to $60k.

[@Pksparty2112]

Many speakers are actually a good deal. But some are just stupid. Magico 9s come to mind. Close to a million dollars is crazy. 2 aluminum boxes with 5 drivers and some electronics in each. Comparing the materials and labor to something like a super car, offshore boat or a house. No way can you compare the parts labor and R&D of a speaker to one of those. But hey if you can get customers who don’t care then who am I to complain. But there is a million dollar phone cartridge so I guess a million dollar speaker isn’t that bad

[@sidesup8286]

You mean my phone needs a cartridge?

[@doublet147]

Speakers are expensive because they add bespoke aspects. They add this to increase the price AND increase their margin. Simple answer.

[@tuathadedanann195]

What speakers are those?

[@kx8960]

Ahhh, maybe actually WATCH the video?

[@tuathadedanann195]

@@kx8960 I did. Did I miss it?

[@kx8960]

@@tuathadedanann195 Mid '80's Infinity IRS V's.

[@Fastvoice]

@@tuathadedanann195 You did. These are IRS V (which is latin for 5).

[@gotham61]

@@tuathadedanann195 @ 0.43

[@triodekt66]

Remembering back in my youth, in the early 70s, Arnie Nudell brought out his cheap “shit box” speaker for us kids. He even named it the POS1 😅

[@markclark1605]

All i can say is Hi Fi dont hold its value so well. Its all over priced.

[@jamiesmith8307]

Would like to know the cost it is for you guys to build the speakers. I know you have to make money but that would be the real reason why this stuff is so expensive. The mark up

[@jasonwebb6484]

I would like to know how much PS Audio spent on their speaker program before they even sold 1 pair. I would guess well into 6 figures.

[@jamiesmith8307]

@@jasonwebb6484 or 7.

[@jamiesmith8307]

@jasonwebb6484 i would think it cost them 10% of with they sell them to make them. I think they make them in China now.

[@jasonwebb6484]

@@jamiesmith8307 you could be right but that’s probably a bit low. They probably wholesale the FR 10 to dealers for $7,500? Not sure if anyone could make that speaker landed to a dealer for $750. And chances are ‘final’ assembly and/or quality check is done in Colorado. But maybe not. But Paul definitely knows what people will click and comment on for KZbin videos.

[@gotham61]

@@jasonwebb6484 In the USA they sell direct to the consumer, not through dealers.

[@cengeb]

Why are PS FR30 so pricey made where? Legacy Audio made in Illinois, more speaker for less money, marketing and profit greed is the biggest cost.

[@gabrielschwartz1963]

IRS V sucks big time and to think they cost $100K. No wonder they've been sold to Harman Kardon and stopped producing these lousy speakers. You can get much better speakers for less than 1/5 the price of these beasts which no one really have enough room to accommodate in a normal living room.

[@gotham61]

Infinity stopped making the IRS V over 35 years ago.

[@rickc661]

inflation is a thing... my 1970' ( purch. new way back ) dynaco 25 cost about $90. ea, walnut veneer,.... today, around $250 ea. min. for same sound Q. the KLH 17 from same era , the wood finish on that - not avail below $500. e. ( just look at a veneer Advent ) but on the other hand, electronics > 100 W chan is easily avail from good companies like Yam. rs 202 for less than $200. probably 80 w / ch by the old mid 70's rating but still... and image , the jump in price from a perfectly reliable Honda to a Mercedes.......

[@MichaelM-to4sg]

Speaking of the Aspen line vs the Genesis, I do not doubt the chassis or “box” of all Aspen is expensive, but why did you make them look so damn cheap? The paint fit & finish is horrible, and yes I have seen now 3 different pairs in person, all FR30’s. They really do sound fantastic but if I a pair delivered that looked like any of the 3 I’ve seen, they’d be returned as defective. Even if the fit & finish were good, why a painted cabinet? Who wants a painted speaker cabinet in their home unless their furnishings are from Ikea? You’re standing there waxing on about the Genesis speakers and the Brazilian Rosewood finish, why are the Aspen’s not similar finish? Doesn’t have to be Brazilian Rosewood, offer a mahogany, quartersawn white oak, Sitka spruce…. The list of available wood finishes that would make the Aspen’s far more appealing to fit within the home decor of most of your target customers is endless, just please, anything but a painted finish. If you insist on painting for budget-margin purposes, they will unfortunately never be allowed in my living room but I would highly advise a new paint booth and painter as well as improved qc. All the best

[@stephenstevens6573]

They are manufactured in China. Thats why the finish is the way it is. The decidion eas made, that in order to maximize profit margin, this would be the sacrifice. Evidently, they believe that the sound will trump the finish. Me, personally, i would never spend 30,000.00 on a pair of speakers, but there are those who will and do.

[@irashapiro9189]

I agree with you, Michael. I will not own a pair of expensive speakers with a painted finish. Good quality well matched veneer with a satin finish is the only thing that will be allowed in my home.

[@gotham61]

It's interesting how tastes differ around the world. People in Europe only want a "modern" looking speaker in white gray or black, and usually think wood veneers are old fashioned, looking like their grandma's china cabinet.

[@Nightjar726]

The boxes are the most expensive part to make. But yeah they are marked up at a silly rate for some. You don’t need to spend more that $15-$20k for an end game speaker with a nice cabinet. For a mediocre box which is more function over beauty it’s around $10-15k The box costs a ton and why most are made overseas

[@gabrielschwartz1963]

Perlisten S7t is one example for such speakers.

[@mpi5850]

A mediocre box is $10k-$15k? Congrats, you’ve won the moronic comment of the day award.

[@deputy3690]

Hifi is a ripoff, especially the vintage market. Those vintage receivers were just mediocre to begin with.

[@SantanKGhey1234]

Speakers are NOT expensive.... if youre talking about great sounding musical speakers, they are not. People dont realize the R&D that goes into designing a great speaker. Then theres the cost of production at low quantities. Bespoke components, hand crafted and hand made..... when you can understand what it takes to build a "great" speaker from concept to reality. You will understand... but for most who are just cheap... will never understand

[@RoderikvanReekum]

It is not expensive at all, you can get a pair of ELAC DEBUT B5.2 loudspeakers for 300 euro.

[@sobaaasobaaa8564]

Hello Paul, weird question, have you ever worn a mustache? Just saw you in front of me with one

[@hugobloemers4425]

Nah, that would make him look like a porn movie producer. A goatee would look much better 😁

[@ChiefExecutiveOrbiter]

Expensive due to child labor laws and shipping 😁

[@PooNinja]

R&D ain’t Free!

[@baruchdor]

Fr5 interesting 😊

[@user-od9iz9cv1w]

A lot better furniture sells for less. My perspective is this is a niche low volume market which demands substantial margin just to break even. I think there are 3 choices. 1. Accept these things cost a lot. 2. Buy used 3. Build your own. Not easy to get it right, but there are well sorted plans and kits.

[@anthonyjackson7097]

One way to cut down on the price of speakers is bi-amping. Many of these $100,000.00 speakers use passive crossovers with dozens of inductors resistors and capacitors. It's a head scratcher because the price of those parts alone could buy a great active crossover and another amplifier. With superior profornance and less money than the passive network.

[@cengeb]

An Audi RS7 is $120K...lot more precision parts than in any over priced loudspeaker...it's called marketing. Stop the nonsense. RS7, comes with climate control, audio, and motion, in all weather, all temperature. Paint finish is better on an Audi, in all weather temperatures, etc. Home hi fi is such a bunch of hooie..especially the over priced electronics. Where are PPS Audio speakers made?

[@kurtbrisch5776]

The average speaker only costs the manufacturer 15-20% of the retail price. The rest of the mark up is profit for the company AND the brick and mortar store that carries the brand.

[@Fastvoice]

Did you count in the R&D, design, marketing and distribution costs? What do you estimate as the real profit after all costs, wages, taxes, social security contributions etc. are paid?

[@kurtbrisch5776]

@@Fastvoice wait, you're telling me a manufacturer has costs that they have to pay out of the profits they make? OMG, who would have thought that that's how a business operates.

[@Fastvoice]

@@kurtbrisch5776 No. What you call profits is not really profit. Profit is what is left after all the costs are deducted from the sales volume (or revenue). So your claim that 80 - 85% of the retail price of an average speaker is profit for the company is just BS. My question still stands without answer: What do you estimate as the real profit margin (%) for a speaker?

[@kurtbrisch5776]

@@Fastvoice thanks, without your vast knowledge I would have forever remained in the dark. LOLOLOLOLOLOLOLOLOLOLOLOLOL

[@Fastvoice]

@@kurtbrisch5776 Great! So where's your answer? 😉

[@Alamo-cz5xc]

Sharif don't like it

[@ssleddens]

PS audio uses off the shelf components. So a set of speakers that they charge 30k has about 2k worth of components, the other 28k is profit for Paul.

[@Paulmcgowanpsaudio]

What an inaccurate and unkind comment. Other than maybe binding posts and capacitors, there isn't one off-the-shelf component in our speakers. Everything was designed from the ground up by our engineer, Chris Brunhaver. And "Paul" doesn't get the profit which you mischaracterize in size and outcome. I get a salary like everyone else in the company. For the 50 years we have been in business we've made, unfortunately, pretty small levels of profit. I wish it were more. Those profits go back into the company and are what fund our growth.

[@TheDanEdwards]

What drives you to do this? Have you ever started and run a global business with many employes?