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Build cost of headphones/speakers
HTS
post Aug 27 2012, 01:00
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I just found out that the left and right cups of the Sennheiser HD600 cost 120 dollars a pair. Sennheiser sells them to anyone who wants them. I don't know what's preventing people from building their own HD600s for less than half of the street price.

Anyhow, it makes me wonder how much the HD800 drivers cost since they are selling them for 1500.

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DVDdoug
post Aug 27 2012, 19:25
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QUOTE
I just found out that the left and right cups of the Sennheiser HD600 cost 120 dollars a pair.
Does that include the driver?

QUOTE
...since they are selling them for 1500.
There is a huge mark-up (gross profit) in audiophile equipment. Audiophiles (at least the people who buy "audiophile" equipment) are NOT bargain hunters... In this market, a higher price makes the product more desirable! You can't blame the manufacturers for taking advantage of this psychology and giving their customers what they want. But in the end, there isn't that much net profit when you are manufacturing, distributing, and selling in small quantities.

Typically, if you buy "replacement parts", you'll pay more for a complete "'kit" of parts than you'll pay for the assembled & packaged retail product. Perhaps in this case it's a different story and you can assemble it yourself for less...???

But for the manufacturer buying parts & materials in bulk, the parts cost is a small part of the overall product cost, and an even smaller part of the price. wink.gif

For the manufacturer, there are material costs, labor costs, overhead, and profit. You might be surprised how much the overhead adds up. I work for a small manufacturer (~10 employees). Only 2 of us are direct manufacturing labor, and everybody else (including the highest paid employees) is indirect (overhead)... We've got Engineering, Management, Accounting, Sales, Purchasing and Materials. Plus you've got rent, utilities, computers & software, manufacturing tools & equipment, taxes, insurance, lawyers, and all kinds of other overhead expenses....
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