What makes a $20,000 cd player cost 20,000?

More than perhaps anything else, willing buyers make a cd player cost $20K. I personally don't believe that material, production, design and marketing costs warrant such a price to the consumer.

Buy a Toshiba DVD-4960 for about $100, then have Ric Schultz at EVS (www.tweakaudio.com) modify it for $350. This may very well be the end of your upgrade path.

A cost no object design - typically meaning a grossly over-spec'ed power supply, herculean efforts at jitter reduction, and the best available parts regardless of price in the analog output stage. Throw in a really pompous audio jewelry facade, plus the lack of abaility to take advantage of economies of scale, and the pirce to manufacture these devices skyrockets. That being said, I can honestly say that my enjoyment of redbook cds has never been better than with my current Simaudio Moon Eclipse, which retails for about $6k, and employs all of the tactics I listed above - I'm glad it comes in well under $20k!

Regards,

Anyone engaged in this hobby has already overstepped the limits of the price/value relationship. Just ask any of your neighbors. They will shake their heads in disbelief when you tell them how much you spent on your system.

Flip the argument around, and suddenly I'm the one claiming they're nuts for spending $500K on a 1400 sq. ft. bungalow in need of work. Value has nothing to do with reality, regardless of the price. It's just a story that we repeat to ourselves until we buy it as the truth.
Enjoy the music!

I have a hard time believing materials, labor, intellectual properties, R&D and what not could ever add up to a $20,000 PRODUCTION CDP. One off designs sure, thats pretty believable. Now holding this price, incorporating economies of scale to reduce internal costs and then finding willing buyers...thats an excellent business case.

Oh - all these "reliable sources" - give me a break. Your question about the price is easy to answer. Part of it is research, part of it is development, part of it is cost no object design, which means material, hand selected electronical parts etc.. Part of it is man power i.e. hand work and part of it is exclusivity and/or hype. But - hey, that all applies to ANY high end stuff, or do you really think that a 5er BMW f.e. is "worth" the money they ask? I'm driving one at the moment because my MINI has electronic ailment. The Beamer is a WONDERFUL car, but not worth 65.000! Ok, and here is my "reliable source": WADIA 270/27ix upgraded by Great Northern - forget anything else.
Happy listening!