TBH, most of us do not know that much more than the average consumer.
Do we know the profit margins for high-end headphones, and base our decisions and valuations on them, or do we blindly follow manufacturer claims and marketing ploys?
Are we really that much more informed than the 'average consumer' we so often make fun of? Or do we just belong to a niche, but are equally clueless.
I can tell you that for instance the Audio Technica Corp. lost money on the best headphones they ever made, the limited edition ATH-W3000ANV. There were only 2000 plus a few of them made and sold. By my estimate the company took only between 1.2 and 1.4 million dollars from the sales, not enough even to cover the cost of the development of these headphones and on top of that there were the costs of the materials, of the manufacturing of the parts and of the assembly. Plus the 'overhead' costs. Audio Technica took a financial hit with W3000ANV.
If I were at the time the president of the Audio Technica Corp. I would had ordered these headphones to be sold for at least 3000 dollars, just to cover the costs. Two years ago in the USA these headphones were being sold for 1000 dollars. How could one had explained to a typical semi-idiot inhabitant of unsophisticated McAmerica, who thinks that a 20 dollars drugstore 'headphones' are as good sonically as a technological state of the art headphones costing 1000 dollars plus and who thinks that a pair of headphones should not cost more than 50 dollars, how could one had explained to a primitive that selling W3000ANV for 1000 dollars was not a price gouging but the opposite, a money losing suicidal marketing move ?
Edited by zorin - 9/12/13 at 10:58pm