Has High-End Audio's escalating MSRPs gone off the rails?

[audiogear]

Maybe it's just me, or maybe not. Viewing and reading about High-End Munich 2023 was super exciting; the return of exhibitors, new product offerings, media coverages from every corner of the world...high end audio is alive and well!

But I'm also taken back by the number of manufacturers/distributors sharing insane list prices for their products. This is high-end audio, I get it.

But there's a point where I feel some of us will take a pause. It seemed many of the demo rooms have 2-Channel setups well in excess of $250k-$500K. For example, Marten introduced a new Quintet Septet model (visually identical to a standard Quintet) starting at $108k Euros vs $75k USD for Quintet.
The flagship Borresen M3 retails for $280k USD will be eclipsed by the new M6 $550k. Let's not forget the ESD Acoustics (never-ever heard of) room, per presenter...$1.6mil+ for their standard setup up to $5mil+. Insane, yes!

I recall a thread where Charles mentioned various manufacturers charge stratospheric prices for their offerings but lack the performance/value compared to their segment competitors...along the lines I was thinking about rising MSRPs.

Off my soap box, what are your thoughts?

[Formerly YB-2]

Am in agreement. Current MSRPs are one reason I did not mind spending the $$ to have my vintage Sony TA-F6B integrated totally refurbished. Took 6 months+, but was in no hurry and have the matching ST-A6B tuner. Have been mulling a Simaudio V600i V2 or Esoteric F-05 or Pass Labs INT-250 integrated, but just can't justify the audio return on a $10K+ integrated amp, to say nothing of something considerably more expensive.
Obviously, YMMV (especially on this forum).

[Masterlu]

I concur; I’m now witnessing some of the most dramatic pricing, and price increases that I have ever seen.

Multi Million dollar 2-Channel rooms; I can justify multiple sound rooms for that, but a single room…

Good thread!

[Puma Cat]

Along those lines, here's those Borresons at AXPONA....280 grand. Whoa. All the electronics were Aavik with Ansuz cabling. I'm sure this system was pushing half a mil, if not over that.

[dkorbal]

I'm of a similar mind set. It's become too easy to explain away higher prices due to what we've witnessed in the last few years. War, inflation, labor shortage, raw material cost to name a few can justify an increase but there are always those fringe companies/individuals that push the limits. Only time will tell if these prices will be supported by buyers. For me, I'm glad I purchased most of my system when I did.

[knotscott]

Prices are up on most things for the reasons stated above by dkorbal. As long as there are people willing to pay six figures for an amplifier, there will be someone willing charge six figures for an amplifier. I suppose the real trick is knowing whether or not you get 10x the amplifier at 10x the price....law's of diminishing returns suggest otherwise, but until I've given them all a try, I can't say from personal experience. ;-)

[tdelahanty]

Most of us will purchase what we can afford.
Most of us don't understand the hidden costs of manufacturing.
Most of us can see the demand for skilled labor increasing wages.
Lastly there must be a market for such expensive equipment or it wouldn't exist.

[crwilli]

Originally Posted by tdelahanty

Most of us will purchase what we can afford.
Most of us don't understand the hidden costs of manufacturing.
Most of us can see the demand for skilled labor increasing wages.
Lastly there must be a market for such expensive equipment or it wouldn't exist.

Couldn’t agree more. Especially with your last point.

I would add, the audio market is similar to the automotive market (and likely many others). A car company makes a flagship product that cost 10 - 20 times their average car and then sell the trickle down Tech to attract a broader customer audience.

[Antonmb]

Originally Posted by crwilli

Couldn’t agree more. Especially with your last point.

I would add, the audio market is similar to the automotive market (and likely many others). A car company makes a flagship product that cost 10 - 20 times their average car and then sell the trickle down Tech to attract a broader customer audience.

Some great points and interesting analogies with the auto industry. Also like automobiles, there are two different types of customer: the hi-fi enthusiast or "audiophile," and the luxury goods buyer. In many cases I think the very high priced products are being targeted at the well-heeled luxury buyer, not the audiophile. The luxury buyer simply wants the best, most expensive and showiest items for a system, especially if it matches the decor. They may like music and even listen to the system occasionally, but they're not the hobbyists, who may now be priced out of those products. This is similar to autos, where some buyers will drop millions for bragging rights and the ability to cruise Rodeo Drive in their showpiece.

[Antonmb]

I see a lot of references in this thread to the cost to produce products and questioning whether the price is justified by the cost. Once costs are covered, makers and sellers of high-end products (not just audio, this is basic marketing) often don't (and shouldn't) price their product based on cost but rather on a variety of factors including real or perceived value to the customer, supply and demand, long-term cost of ownership, at what level they want to position the product versus their own or competitors' products, etc.