samspotting
New Head-Fier
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- Nov 18, 2008
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Grados look extremely cheap but go up into the thousand range. This got me thinking in general, how much does it cost to manufacture a nice set of headphones?
Originally Posted by rhfactor1 /img/forum/go_quote.gif From having friends in the Audio Specialty Industry throughout the years and knowing what they paid for certain audio items. There would probably be a markup on most headphones of possibly up to 60%. So a $100(MSRP) headphone would cost a dealer approximately $40, so for the manufacturer to make any profit the manufacturing price is probably between $15-$20 possibly less. In defense of Grado Labs all of there items are manufactured in the U.S.A. and I'm sure their manufacturing costs are higher, but I still say even though there markup may be quite a bit less their manufacturing costs are probably less than many people would realize. And I also do not believe it is a bad thing to make a profit especially in these economic times. ![]() |
Originally Posted by mbd2884 /img/forum/go_quote.gif Wrong. Their cables are made in China and I suspect as others the drivers are made in Singapore/China. They seemed to only assembled in the USA, which apparently to Grado means build in house. |
Originally Posted by rhfactor1 /img/forum/go_quote.gif From having friends in the Audio Specialty Industry throughout the years and knowing what they paid for certain audio items. There would probably be a markup on most headphones of possibly up to 60%. So a $100(MSRP) headphone would cost a dealer approximately $40, so for the manufacturer to make any profit the manufacturing price is probably between $15-$20 possibly less. In defense of Grado Labs all of there items are manufactured in the U.S.A. and I'm sure their manufacturing costs are higher, but I still say even though there markup may be quite a bit less their manufacturing costs are probably less than many people would realize. And I also do not believe it is a bad thing to make a profit especially in these economic times. ![]() |
Originally Posted by BigTony /img/forum/go_quote.gif The costs are quite variable, and not linear, so the profit/markup is small on entry point items, and then runs to several 100% on the more expensive ones (the technique is called 'the switch sell', have a well priced entry item, it gets good reviews/kudos - then fill out the range with more expensive versions of basically the same item, then 'persuade' the buyer that they're the sort of discerning customer that would appreciate the 'more refined' version.. and 'kerching!'). And don't forget, Grado (and every other headphone company) don't make headphones - they make money. |