Originally Posted by feverfive
We keep paying these prices though, so I'm not seeing the incentive to offer low prices, as much as I'd like to see it.
Right. Competition will not draw down the price of the flagships, which are meant to exude prestige. Prestige is linked to money. I remember taking free classes with a Karate champion (a national representative of the U.S. in international competitions) and being dismayed that so few people showed up, and so irregularly. Paid classes at the same place, with a much lesser sensei, never had that problem: People had paid and so they kept showing up. Another example is when France tried to make buses entirely free: Those buses suffered from degradation at such an accelerated rate (people treated them like ****) that they had to cancel the experiment. Another example is the fact that you'll never see a cheap line of Hermes or LV bag: Those brands cannot afford the loss in prestige.
All that to say that there's a kind of respect tied to money. So there's an incentive to price flagships high, whatever their R&D and construction costs really are. This said, it's also true that we get much better quality now on the low end of the price scale than we used to get just a few years ago.
Originally Posted by Spyro
- If universals can eclipse the sound of these top-end customs at less price AND have 70-80% resaleable value (versus 30-40% that customs offer) it is a MUCH higher and better value.
CIEMs are a lot more costly to craft (in man hours) than IEMs. So when an IEM is priced the same, the company gets more profit. You're justifying the price of high-end IEMs by what people are ready to spend, and that's fine; but based on the relative costs for the companies, the higher price of CIEMs is justified.
Edited by Sinocelt - 1/11/14 at 9:39pm