Wadax Studio Player

My point is simply put, that $40k item could easily be priced at $10k and probably would still make the company money.

I see posts like this all the time and wonder how people come up with these numbers.

Sincere question: is your $10K price point based on knowledge of the costs associated with keeping their business profitable (which is how you came up with the $10K number) or just a complete guess with an arbitrarily chosen number?
 
I see posts like this all the time and wonder how people come up with these numbers.

Sincere question: is your $10K price point based on knowledge of the costs associated with keeping their business profitable (which is how you came up with the $10K number) or just a complete guess with an arbitrarily chosen number?
I mean no insult to anyone but they just have no idea the costs of manufacturing high quality items in low volumes.
Crappy finished sheet metal is easy and cheap however audiophiles don't want that.
High quality anything in small quantities is expensive. These are NOT fortune 500 companies with huge buying power. High End gear is made in very small quantities.
 
your opinion is fine but many would disagree. In your world then Bentley, Rolls, Ferrari, Patek Phillipe, Rolex, Sub Zero, Hermes, Channel, Mercedes and every other luxury brand should not exist.
I am afraid that many would not agree. That is why there is McDonalds and Peter Lugers its your free choice.
No actually you are completely wrong. I very much appreciate quality products and do feel paying for top quality in the long run is actually cheaper. However, paying for quality is one thing, paying 100x the price because they feel they can is something else. My wife and I do buy higher quality products because they are in fact better. Over the course of my life I have actually purchased 15 Mercedes, among others. Simply put yes, the Rolls are out there but according to all mags and forums 99% of the items are Rolls... (my view with no evidence to support :) ).
 
I see posts like this all the time and wonder how people come up with these numbers.

Sincere question: is your $10K price point based on knowledge of the costs associated with keeping their business profitable (which is how you came up with the $10K number) or just a complete guess with an arbitrarily chosen number?
Actually, yes, it is. The $10k number was off the cuff, to make a point. I worked in the hi-fi industry for 20+ years prior to taking up the software development gig. I also have a couple of friends who own audio manufactures, designers, developers, etc. I believe I have more than a consumer knowledge on the subject.
 
I mean no insult to anyone but they just have no idea the costs of manufacturing high quality items in low volumes.
Crappy finished sheet metal is easy and cheap however audiophiles don't want that.
High quality anything in small quantities is expensive. These are NOT fortune 500 companies with huge buying power. High End gear is made in very small quantities.
This I do understand, however I do believe that they are still over pricing their products to a point that it is hurting the audio hobby in very serious ways.
 
Actually, yes, it is. I worked in the hi-fi industry for 20+ years prior to taking up the software development gig. I also have a couple of friends who own audio manufactures, designers, developers, etc. I believe I have more than a consumer knowledge on the subject.

Hi Randy - you didn't answer my question.

Are you privy to their specific costs for their business that you assigned the price point to? As in you've seen their books?

It sounds like you just randomly picked a number based on "having friends" and some nebulous "in the industry"?

It's an honest question trying to understand how you came up with that price.

Does that mean I understand Ferrari pricing and costs if I worked at a Honda dealership wince I would have been "in the industry?"
 
Hi Randy - you didn't answer my question.

Are you privy to their specific costs for their business that you assigned the price point to? As in you've seen their books?

It sounds like you just randomly picked a number based on "having friends" and some nebulous "in the industry"?

It's an honest question trying to understand how you came up with that price.

Does that mean I understand Ferrari pricing and costs if I worked at a Honda dealership wince I would have been "in the industry?"
I thought I did answer your question. Yes, I do have some knowledge. Maybe not to specific companies, but to costs of designing, materials, etc., etc. I do have more than a consumer knowledge, going back to the '80s and 90s actually.

However as to WADAX costs. No, I do not. And I assume they are pushing the edge of tech. But the prices definitely do not equate to costs. Their model appears to be build a small amount and make the same if we charge a lot less but sold many more units. And remember, this is one company I do have respect for, however I also believe they could sell their products at a fraction of the current pricing and sell more units and come up with the same bottom line. The only cost would be reputation compared to who is considered their competition. And this is the exact model I am putting forth the propsition is damaging the audiophile hobby.

A good example is a favorite of some users here to bust on. The server that costs between $30k - $60k. A friend has built several of these for audio club members. Almost exactly the same in most every way. He charged $5k-$6k for them. That was his actual costs. My knowledge of computer systems and comparing, if anything I would say his custom-built machines might actually have been better.
 
A good example is a favorite of some users here to bust on. The server that costs between $30k - $60k. A friend has built several of these for audio club members. Almost exactly the same in most every way. He charged $5k-$6k for them. That was his actual costs. My knowledge of computer systems and comparing, if anything I would say his custom-built machines might actually have been better.
Warranty
packaging
advertising
rent
payroll
shipping
insurance
dealer markup
profit
none of those count?

if you built this product for 6k? at what price should it be sold.

I dont think you have an understanding of what it truly costs and that it is more than a bag of parts
 
Thank you. My question was meant in the spirit of genuine conversation.
I appreciate that. I did work for a time at a company designing audio equipment. In my view my friend, the owner was a genius in circuit design. He started out working with Paul McGowan, James Bongiorno, Ted Smith and others, and started his own company when he was still a teenager. I was very involved with design and testing a new pre-amp (unfortunately, that he never brought it to market) and was the direct contact to Absolute Sound, Stereophile, and more.

He decided to not move forward with advertising in these printed mags because he would have to raise his prices by at least 25% or more. He was not willing to do that. But my point is I do have more than the average consumer knowledge.
 
Last edited:
Warranty
packaging
advertising
rent
payroll
shipping
insurance
dealer markup
profit
none of those count?

if you built this product for 6k? at what price should it be sold.

I dont think you have an understanding of what it truly costs and that it is more than a bag of parts
Of course, all of that comes into play. However, it still does not justify a 600%, 700%, 1000% mark-up. Not even close. Dealer mark up from their cost is 30%, at absolute most, or that is what we shot for when I managed a few stores back in the '90s. Manufacturing costs, all else considered might be 100% of cost. Also, costs are a ton less when purchase in quantities, boards, parts, switches, etc. A switch I would pay $50 dollars building my own custom server for would cost maybe $3-$4 dollars when purchased by a manufacture. These numbers are off the cuff, not 100% accurate, but pretty damn close with some real knowledge actually handling parts purchasing. Therefore, the server costing my friend say $6k, would cost a manufacture maybe closer to $2k or $3k to build.
 
Of course, all of that comes into play. However, it still does not justify a 600%, 700%, 1000% mark-up. Not even close. Dealer mark up from their cost is 30%, at absolute most, or that is what we shot for when I managed a few stores back in the '90s. Manufacturing costs, all else considered might be 100% of cost. Also, costs are a ton less when purchase in quantities, boards, parts, switches, etc. A switch I would pay $50 dollars building my own custom server for would cost maybe $3-$4 dollars when purchased by a manufacture. These numbers are off the cuff, not 100% accurate, but pretty damn close with some real knowledge actually handling parts purchasing. Therefore, the server costing my friend say $6k, would cost a manufacture maybe closer to $2k or $3k to build.
sadly I deal with real numbers and real costs and what was 30 years ago isn't today.
Are some prices way to high? some probably but your numbers Randy are not correct.
Parts cost includes nothing and building three items in your garage has no relationship to manufacturing reasonable quantities and all the associated costs that come with and after. This doesn't even take into account making money and paying people.

6 t0 7 times parts costs if you actually do the math works when there are sales layers .
Sell direct to consumer would be less and some companies manage to survive doing that, most do not
 
sadly I deal with real numbers and real costs and what was 30 years ago isn't today.
Are some prices way to high? some probably but your numbers Randy are not correct.
Parts cost includes nothing and building three items in your garage has no relationship to manufacturing reasonable quantities and all the associated costs that come with and after. This doesn't even take into account making money and paying people.

6 t0 7 times parts costs if you actually do the math works when there are sales layers .
Sell direct to consumer would be less and some companies manage to survive doing that, most do not
You obviously are not reading what I said. Not knowing exact numbers for these companies, and references to 30-year-old practices aside, I do indeed understand all of the factors you mentioned and have worked in, been deeply involved in manufacturing of audio gear, in present day situations.

6-7 times parts cost, especially when considering manufacturing parts cost which are a whole lot less than parts cost for in your garage, as you said, when building anything. What the company gets parts for and what I get parts for is nowhere near the same "in the real world". The bottom line comes down to that all of these "extreme" companies are charging multiple times more than they really could be, and that is being generous. I guess billionaires don't care so much, but as it stands, they are the only ones buying these products anyway. The long-term life and survival of our hobby is going to need a ton more customers than billionaires. Magazines, reviewers, forums, etc., focusing mostly on these "extreme" companies are doing our hobby no favors.
 
As someone who is in manufacturing in audio, some of our material costs have gone up as much as 97% over the past 12 months.
 
As someone who is in manufacturing in audio, some of our material costs have gone up as much as 97% over the past 12 months.
I can definitely see that. This is why some companies such as McIntosh have raised all their prices by 15% or more. I am guessing over seas cost have not gone up as much, but shipping into the US has.
 
Warranty
packaging
advertising
rent
payroll
shipping
insurance
dealer markup
profit
none of those count?

if you built this product for 6k? at what price should it be sold.

I dont think you have an understanding of what it truly costs and that it is more than a bag of parts

You left out the cost of capital to provide select reviewers long-term loans of gear like Wadax does.
 
Last edited:
In 55 plus years I have never sold anything to a billionaire. Please send them to me I am deprived
I bet you have... I also bet that every one of the purchasers of Wadax digital products; "just sold my last one this afternoon" was at least a multimillionaire. I exaggerated a bit, sue me.

Working people, even us working people that built ourselves up to having pretty decent livings, could not afford the prices being charged for these products. A very small percentage of people enjoying our hobby could. I simply look back at our audio club back in California. Of the few hundred members I know of one, maybe two, maybe even three who actually could.

The hobby is destroying itself from the inside by emphasizing these extreme products instead of promoting the type of products that might get more people interested in our hobby. The reviews should be the exact opposite percentages. Maybe one or two tops that are in these extreme ranges, and several in the more modest levels. Maybe review more lower models and one of the extremes each issue. It would make our hobby more inviting, instead of making those that might be interested think that we are all snobs.

You want to scare off potential new people to our hobby just show them the recommended component sections of The Absolute Sound or Stereophile magazines. It is just nuts. Yes, I know, a few "affordable" pieces get put in the list, usually included with a title of budget piece. Not insulting at all... Almost like an afterthought.
 
Last edited:
Back
Top