Quote:
Originally Posted by Jérôme W
My remark was just ironic.
Of they think they will sell it.
Mr Lacoste, you defend Magico like a Crocodile 
BTW, do you know the price of 250 lbs of copper ? Around 600 euros, let's say 800 dollars.
I still don't see the relation with the price asked and I still think it is absurd to spend 50k in a rack but anyone is free to do whatever he wants with his money....
Sent from my iPad using A.Aficionado |
do you know the price of the raw material of your pair of Wilson? less than 1000USD.
Sorry, but your comparison is meaningless. I happened to have done acquisition due diligence on different hifi OEMs a few years back, so I know quite well industry cost structure, I can guarantee you that most players in the industry don't make any money.
If you really want to understand where your money goes keep in mind that when you buy a hifi product for 100:
- 50 to 60 goes to the pocket of the distributor
- with the 40 left for manufacturer, 40 to 50%% of the cost goes to payment of overhead: accounting, IT, product design cost, sales cost, management cost... So assuming 10% margin, you have less than 20 left for the COGS (cost of good sold).
Talking about COGS, material cost represents nothing in most hifi products. The rack is mainly aluminium (with some copper). It weighs 500lbs, not 250. Keep in mind that machining something like the M-rack probably takes 4 days to 1 week. Just calculate the depreciation of a 3 axis equipment for one week, and the cost of the machining guy (around 4-5k per month in US). Then you need to do ultra fine polishing- because with anodizing, you need to have a quality of finish at the micron level or you will see imperfections. Then add on the top the cost of finishing itself: anodizing like what Magico is doing costs a fortune because it is a very toxic process, only very few facilities to do that. And at the end you need to ship them... in a wooden crate. You can add 300-400USD extra.
Selling price for the rack may be crazy, but you pay the fact that this thing has been developed to sell maybe 10 of them (even not sure, I also believe they just developed their own rack for their own demo because they couldn't find anything good enough for them, the same way they developed their own music server and are not selling it), that everything is produced in US, that finishing is ultra expensive and that distributors capture more than half of the value. The fact it is super expensive doesn't mean they make really money on it. Unfortunately this is the problem of all audiophile niche products.