IS THE BEST EQUIPMENT WORTH THE INVESTMENT ?

[♔Chello]

IS THE BEST EQUIPMENT WORTH THE INVESTMENT ?

Largely dependent on the quality of one's hearing but usually higher priced equipment provides diminishing returns. 
A manufacturer has a set profit margin to meet and this is the initial standard base selling price point after costings.

Discussions are made how much more would a customer be willing to pay compared against similar products from the competition. 
This higher price provides more profit margin but also enables the selling price to be lowered if the product does not meet its sales expectations and still leaves the manufacturer with his basic set profit.

⚅Graham


Thanks for your informative info from the manufacturers' perspective.

This is something we users also need to have some understanding of; after all, it often costs large sums to develop a product, and the manufacturer must try to set a price that covers the costs and provides the necessary profit.

State of the Art products give rather poor returns, but are to a certain extent necessary to establish a place in the market, and constitute a difficult calculation.

Sometimes things go completely wrong, as with the Norwegian Tandberg and their 3002 and 3003 amplifier sets.

One of the world's best amplifier sets, but it cost so much that the company almost went bankrupt, because the retail price was far too low, even though the sum was sky-high.

Another example is Technics, which had to discontinue the production of keyboards after developing the KN-7000 - the earnings were not in proportion to the costs of developing it.

A third is Mercedes, which was forced to focus on simpler and cheaper models that anyone could buy.

Unfortunately, only a few users are competent to evaluate State of the Art products, and the earnings lie in consumption; that is, cheaper products that the masses can acquire.

Korg Italy is perhaps in a similar situation due to the Pa5X.