Economics of small speaker manufacturers


Looking at the drivers, cabling and woodwork that some small scale factory direct speaker manufacturers offer (Tyler Acoustic for example), I am curious to know what the selling price would be if the same speakers were sold by say Dynaudio, JM Lab or B&W via their multi-echelon distribution channel, accounting for shareholder return, marketing expenses, profit of all distributor-retailers involved, etc?
When Tyler sells a pair of Linbrook System 2 for $4,000 shipping included ( as stated "one 8" Seas magnesium woofer, one 7" Seas magnesium midrange and the Seas millennium tweeter. Hovlands, Alpha cores and Sidewinders are used in the critical signal paths. DH Labs wire comes standard" + real veneer"), how much would this sell for if it were a bigger "commercial" brand?

Thanks for educating me.
kanuk
As scientists discovered long ago, many questions cannot be answered by theoretical pondering alone, even by brilliant thinkers, and we have to go to the real world to see what is actually going on.

In principle, a boutique shop could pass on much of the savings to the customer giving you a "$5000 speaker" for $2500. Or it could decide that you're used to paying $5000 for such sound and charge $4799. Who is doing what?

In principle, a big company could use overseas production to give you the best quality at 1/2 price. Or you could get 1/10th quality for 1/2 price. :) Again, who is doing what?

This is not for theoretical deduction. In the end, we need A'goners who know the best of each kind and can tell us where the best values are.

The answer may well depend on the price range: for example, it is quite possible that for the "best $1000 speaker" you need to go to a big company outsourcing from China, and for the "best $5000 speaker" to boutiques in small town USA (that's an example, not a statement).

In any event it is important to compare best with best. Much review ink is wasted on comparing good product of one kind with mediocre ones of the other.

Fatparrot:...the problem with Chinese gear is that you never know what you're getting.

That's why I won't buy direct from China at this stage. However, with a company like Quad or LSA in the middle, I expect them to take care of QC issues.

As a general life lesson, I have seen many Westerners make a mistake in Asian countries. If something costs $100 back home, we should be glad to get a comparable item for $50. Instead they get busy chasing $19 possibilities in proverbial dark allies. :) So, while made-in-China is cheaper, we don't have to chase absolutely the cheapest that may be out there.
Aktchi, I agree with your statement. The most important factor in Chinese manufacturing is "who is watching the cookie store". Without proper oversight, too many games are played in the manufacturing. This happens at upper level management, unlike America, which had previous problems at the actual blue-collar assembly lines.

Again, I personally try to avoid Chinese products, whenever possible [more difficult every day], due to political reasons...but this is NOT subject of this thread!
Mrtennis, thanks for the vote of confidence but designing and manufacturing an electrostatic element is out of my league. Doing so would call for a level of engineering and financial commitment that is beyond me, and besides at this time I don't see an opportunity for dramatic improvement over what's being done by the electrostatic manufacturers who are already out there. On the other hand, I think there is still substantial room for improvement in cone loudspeakers.

Duke
While I have built a electrostatic. And owned many factory built. I dont feel electrostatics at this time are worth investing in. As Duke said many companys already make good stats I dont find them to be my cup of tea anymore. Stats have problems just like all loudspeakers to me stats just dont move me like a good compression horn loudspeaker..
On the China issue, I have heard manufacturers tell me that China's metalurgy has a far way to go before they can compete with the west.

Meaning the qualities of the raw metal they are using is not up to some people standards.