I'd ask the same question the OP asked, do any of you assemble and sell high quality LODs?
$125.00 for a built by hand LOD? That's ridiculous. I understand that running a business costs, experienced labor adds value, and quality parts cost more (those parts bought in quantity shouldn't exceed $8.00). From my fundamental analysis, that's approximately a 75% profit margin (assuming a generous labor price to assemble the cable, $35 - $45 an hour, and revenues to cover the costs of marketing and selling the product).
I think the LOD market is a niche market, that means demand is low. So that means the incentive to build such products is low. But, I find it hard to believe that profit margins like that wouldn't draw in competition. I'd assume at least a few dozen basement hobbyists that can prove their knowledge and abilities to the market exist.
I would agree that the Fiio L3 LOD is low quality, therefore its low price. We can set the entry price of the market at around $18.00 (all costs to acquire it) for those who want to ignore the costs of doing small business in the USA. I would point out that price includes a reduced assembled in China labor price. Factories in the USA don't intimidate their workers at the level they do in China (you don't want to work harder and breathe in those poisonous fumes? We beat your wife and children, then you work harder!). Lets be ethical, lets set the entry price into the market at $25.00 (yes, this is the cost of a high standard of living).
We know $25.00 isn't using decent parts, so the price is probably too low. We also know skilled basement enthusiasts who are willing to supply a niche market can't run a business using economics of scale (mass producing factories), so we need to compensate for the increased costs of doing small business; therefore, we need to increase the price up to $30.00. We also know $125.00 includes an excessive profit margin (but it includes audiophile level parts) so we know this price is probably too high. The market price for an audiophile level LOD cable is somewhere inbetween here. Who is providing it? That's the question.
Competition would start around $125.00 because that's the marginal high price. Whiplash is setting the price at $89.00 + shipping. Now we know the spread is between $30.00 - ~$93.00. Who can beat ~$93.00 using audiophile level parts and provable skilled labor? Whoever you are, you have an opportunity.
Edited by the modulator - 4/28/11 at 8:41am
