200% mark-up on speakers ????

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Cacophonix

Re: 200% mark-up on speakers ????
« Reply #20 on: 16 Apr 2009, 04:36 pm »
Like a few have already mentioned, don't get into DIY with the intention of saving money. Do it only if you enjoy the whole process. Looking at the used prices of commercial speakers, and what it might cost to built from a kit .. the difference is not all that great. But you won't get the satisfaction of DIY plus you'll learn a lot.

*Scotty*

Re: 200% mark-up on speakers ????
« Reply #21 on: 16 Apr 2009, 05:11 pm »
Some of the cost of any loudspeaker reflects the costs of the equipment to produce the cabinet. Can anyone spell CNC router. The CNC router is a cool quarter of a million dollars brand new.  Obviously the mgfr. is trying to get out from under this debt sooner rather than later. They are also paying for skilled labor to build their product. The other factor impacting the cost of the loudspeaker is related to the perceived value of the speaker. For some reason audiophiles and the public in general believe that if something costs more it has to be superior to a similar product that costs less. Or to put it another way if your product does not cost enough it will not be taken seriously by the targeted audiophile buyer.
Yes,I know, it's crazy but it's true. Your street cred as a manufacturer of audiophile products is directly related to your products bling factor and its cost.
Scotty

2bigears

Re: 200% mark-up on speakers ????
« Reply #22 on: 16 Apr 2009, 05:51 pm »
:D  good points,and well taken.but i just can't handle the fact that 40 to 80% of speaker cost is for a 'BOX',and to make that box look shinny and pretty. most people think if it ain't real expensive,it ain't no good, hummmm :D

JoshK

Re: 200% mark-up on speakers ????
« Reply #23 on: 16 Apr 2009, 06:00 pm »
There is also a difference between building a kit/project which driver choice, cabinet size/volume and crossover is spelled out for you and completely ANOTHER THING ALTOGETHER to design your own crossover.  The later is not impossible but it is a very steep learning curve.  You have to love doing it or you might find it daunting.

turkey

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Re: 200% mark-up on speakers ????
« Reply #24 on: 16 Apr 2009, 06:59 pm »
There is also a difference between building a kit/project which driver choice, cabinet size/volume and crossover is spelled out for you and completely ANOTHER THING ALTOGETHER to design your own crossover.  The later is not impossible but it is a very steep learning curve.  You have to love doing it or you might find it daunting.


Crossovers are really easy. You just follow the charts in one of those cookbook style books by Weems... :)

(You have to wonder if he ever actually listened to the speakers in his books, or if he even liked listening to music.)

Mike Dzurko

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Re: 200% mark-up on speakers ????
« Reply #25 on: 16 Apr 2009, 07:57 pm »
It’s not just the box. It’s the building rent or mortgage, the insurance, the employees, the marketing, the computer systems and software, the office furniture, the legal costs to make sure you’re not getting sued for something, or have a legal problem like zoning, or employment law, the accounting costs, taxes, the cost of loans. . . . I could go on and on. The minute it becomes a business, the materials costs are only a small fraction of your TOTAL and real cost. 

Another subject: For a long time we offered full-kits. Turned out they were actually more expensive than finished speakers. (detail plans, packaging, customer support “how do I put this together”, the problems when it was assembled improperly, etc.) The only true cost savings for DIY is if you build the cabinet yourself.  I remember the turning point was when we offered a "free assembly" special on full kits. In two months, not ONE customer elected to build it themself.
« Last Edit: 17 Apr 2009, 01:42 am by Mike Dzurko »

oldmp3

Re: 200% mark-up on speakers ????
« Reply #26 on: 16 Apr 2009, 08:10 pm »
Please consider the difference among:

  • Designing a crossover to match and complement a specific set of drivers, enclosure, speaker design, etc.,
  • Tweaking the crossover, and perhaps the speaker design, to produce the desired "sound"
  • Assembling a crossover based on a design

The first two, IMO, are both art and science.   Manufacturers (and DIY folks) spend various amounts of effort and money on them to achieve a design, price point, etc.

Putting an improved crossover design in an inexpensive manufacturer's speaker improved the sound for me.    I just "assembled" it.   :D


pardales

Re: 200% mark-up on speakers ????
« Reply #27 on: 16 Apr 2009, 08:11 pm »
The only true cost savings for DIY is if you build the cabinet yourself.  I remember the turning point was when we offered a "free assembly" special on full kits. In two months, not ONE customer elected to build it themself.


That's me!  :lol:

undertow

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Re: 200% mark-up on speakers ????
« Reply #28 on: 16 Apr 2009, 08:12 pm »
200% MARKUP??? Minimum is 500 to 600% markup on any I have sold retail. I use to work for a high end 2 channel and home theater joint... Man it would make you cry if you knew how much the dealer paid for those speakers  :oops: For example a 2500 dollar pair retail we would sell maybe at a discount for about 2200.00... We paid minus freight somewhere around 600 to 700 per pair sometimes.

Now lets not even get into cables!! Scary as I have had pairs that TOTAL had 15 dollars worth of parts and one hour of time put into them, and retail was 600 bucks :icon_surprised:

But custom packaging, Marketing, and Labor costs all add in, maybe not totally fair on some products, some are a joke and way overpriced regadless how much we try to justify them.

2bigears

Re: 200% mark-up on speakers ????
« Reply #29 on: 16 Apr 2009, 09:03 pm »
 :D  yes my 200 was way off.and Mike makes the point of all the hidded costs we mortals don't think about.spend a million to make a thousand,i like that,true enough.used is where it's at with brand names.but still,a 20,000.00 dollar speaker using a 40 buck mid driver don't seem right.must try to get over it....the box--the box--the box-- :lol:

Mozart

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Re: 200% mark-up on speakers ????
« Reply #30 on: 16 Apr 2009, 09:36 pm »

 Do all luxury products have a mark up in the 300% or more? I would think so. The price of doing business and the cost of the ''brand''.

 You have to pay for knowledge and skills; either you spend a lot of time finding the

  info on the different aspects of speaker building (choosing the right driver-xover -box) or pay someone who has this knowledge.

 Choosing a quality driver is one of the most important part of this adventure.

 A way to get a good value is to choose a fullrange and ask the manufacturer for a plan for the cabinet that you have built or build yourself.

 Another solution if again a fullrange in an open-baffle. You get less bass, but with the proper driver a very good sound.

If you want deep bass; then, it's more difficult and costly. But even diy is not a waranty to good sound....




 

Ericus Rex

Re: 200% mark-up on speakers ????
« Reply #31 on: 16 Apr 2009, 10:24 pm »
:D  good points,and well taken.but i just can't handle the fact that 40 to 80% of speaker cost is for a 'BOX',and to make that box look shinny and pretty. most people think if it ain't real expensive,it ain't no good, hummmm :D

The box is probably the single most important component in a good speaker...unless you're in the OB camp.

Mariusz

Re: 200% mark-up on speakers ????
« Reply #32 on: 16 Apr 2009, 10:53 pm »
:D  good points,and well taken.but i just can't handle the fact that 40 to 80% of speaker cost is for a 'BOX',and to make that box look shinny and pretty. most people think if it ain't real expensive,it ain't no good, hummmm :D

The box is probably the single most important component in a good speaker...unless you're in the OB camp.

....that and appropriate, quality drivers. The rest is tuning.