Things you did not know about what is inside your speakers and the Huge markups

Good comments above but I want to add one more thought. High end speaker companies are very SMALL. Wilson is estimated to have annual revenues of around $10 million and they are one of the largest super high end companies. To someone who has never had their own company that may sound like a lot but it is tiny in the scheme of things.

Boutique speaker companies may sell less than a hundred pairs of a particular model each year. Until recently Rockport speakers were built by hand, one at a time, in the founder's basement. In contrast, Ford sold over 800,000 F150 pickups last year. That's a sales volume of over $40 billion on one model! If Wilson sold half a million Alexia V's per year the price would be a fraction of what they now charge.

Small companies cannot adhere to the same margin formulas as mass producers. If you think that boutique speaker builders are cutting a fat hog you should start your own company and show them how it's done.

We are seeing some evidence that streamlined Chinese manufacturing can reduce speaker costs dramatically. I recommend that anyone in this hobby seek out and listen to a pair of SVS Ultra Revolution Pinnacles. IMO they are absolutely incredible for $5k. My point in bringing this up is that there is no reason for anyone to complain about megabuck audio equipment in this day and age. If you can afford to spend six figures on a piece of audio equipment that's great. But you can buy incredible audio these days for less than fly fishermen spend on high end wading suits or bicyclists spend on a fancy mountain bikes.

A $3 million Koenigsegg is not just the sum of its parts. A $500 bottle of wine has little correlation to the cost of the grapes. A 2000 sq ft house on the waterfront can easily sell for 20x the price of the same house in a typical neighborhood. High end audio is no different.

Thank you @ozzy62 . 

The concept of "overpriced mark-up" makes sense to me when one compares really well-engineered speakers like those of, say, Ascend Acoustics or Fritz vs. those of much pricier brands with "bling." 

There are ways to own great, great quality Speakers without having to pay a typical audio business their asking price and indirectly not paying an audio production Company their asked-for price.

I know one Purchase where a Globally Known, very well-exposed brand in the marketplace, that is a UK-based company. Where a friend went to the company premises and had a direct introduction to a TOTR Speaker design, resulting in a brand-new model being sold for 40% cheaper than the typically seen retail price.

The direct-to-manufacturer approach is an option available to anybody as a Cash purchaser, as the Manufacturer will not be offering a credit arrangement for a purchase. The direct purchase, if compared to the final payment of a credit arrangement used to make a payment, may have been nearer a 60% saving when direct purchasing was in place. 

On the other side, there are great speaker kits, really great speaker kits. The commission build route will add to the cost, i.e., Cabinet Maker service and an Electronics Engineer Service will be added to Driver +  Xover prices. Depending on the selected model, the end build will need a Speaker from a retail production background to be somewhere between 5x - 10x the basic cost of the Kit Speaker to be able to be competitive as a functioning design and performer. I have heard a £3K Kit Speaker compared to a £5K and a £12K-ish Speaker, and both were noticeably weak in what they offered as a comparison. 

My own new Speakers are purchased for the construction value + 15%. The individuals instrumental in the design and final voicing of these Speakers are claiming that the Speakers outperform £140K speakers in one assessment and extended on this value in another assessment. I have £135K remaining in my coffer. What's not to like about using any method that avoids the typical retail purchase method?

The used speaker market should also be probed for what can be achieved as a purchase. If a buyer really works the sale in their favour, it will also generate a super bargain buy. Buying into not-too-commonly-seen imported speakers can easily become a speaker with a negotiated price near 70% cheaper than retail. The beauty is that there still remains no binding commitment to make the purchase. The Buyer is stuck, and the seller can bide their time. The buyer, if successful with the depreciated value will accumulate 85%+ of the purchase price if sold within 18 months. I have seen this purchase method work, and a profit was made on a resale. t        

@8th-note    +1 very logical perspective. Unfortunately many Audiophiles react emotionally regarding cost of a component.

@hilde45      -1 very self-absorbed perspective. Value is in the eye of the beholder.