Why are there so many speaker manufacturers? (1 Viewer)

[EdNichols]

I read somewhere that there are over 200 speaker manufacturers and with each manufacturer having several models it is no wonder that choosing one is so hard. Are there so many because it is easy to manufacture speakers and they have such a big profit margin? Just wondered.

 

[Jeff Gatie]

Capitalism!

 

[MikeLi]

Its because they haven't found the right thing in the right price range to compete with the Onix Rockets..... haha

 

[Kenneth Harden]

Because any jacka...umm...jackrabbit can screw some drivers into a box and sell them over the internet. You just need to know the good ones, like SVS and Rocket.

However, you do not see lots of companies that manufacturer electronics, as it is a lot harder and expensive.

 

[John S]

Choice is good right? The more the better right?

 

[Ernest Yee]

It's actually funny to note that there are so many because with many other business models/strategy, you would expect companies to drop their pricing to remain competitive, but in this esoteric hobby, speakers can become more attractive if priced higher.

 

[WayneO]

Everyone's hearing, living space, idea of pleasing asthetics is different and so in that respect that leaves an opportunity to provide a lot of solutions. So there are many companies to provide a solution for all these individual situations. It must be necessary, otherwise these companies wouldn't still be in business.

 

[John Garcia]

It's all about personal preference. Not everyone feels the same about the way a given speaker sounds. Klipsch would be a good example. I find them fatiguing to listen to over time, but there are plenty of people who enjoy their sound. I don't feel they sound bad, just that they are not my cup of tea.

Not to mention that in the mass market, the margins are probably pretty good too...just look at Bose.

 

[Darrin W-G]

It's refreshing discovering speakers from a manufacturer that no-one in the main stream has heard of before...

I had a listening opportunity some years ago when a friend purchased nz made speakers called Image powered by a Plinius pre & power amp combo.

Most of us are patriotic towards home grown manufacturers..

I don't base my choice of speakers from reviews from US/Canada, England and Europe or even in this forum. I listen to them in my own enviroment under the conditions I live in..

 

[HienD]

Speakers have very good profit margins. Also, good sounding speakers that cost a fortune to buy, doesn't always cost a fortune to make. Especially if the R&D is low.

 

[Nick Sievers]

That is like asking "Why are there so many car manufacturers". It is all about choice and varying product.

 

[Garrett Lundy]

Because the market supports them.

 

[John F. Palacio]

That is one of the reasons. Even though a good speaker needs a fair deal of R&D, Anyone and their dog, can get some wood, buy some drivers, make a crossover and end up with something that makes sounds.

Can't do that with a Processor, CD player or Power Amp.

 

[Mike Dzurko]

A few points from someone who's been manufacturering speakers for 26+ years, (sending this from my yacht:

* That 200 number has been fairly constant for many years. If you go back, you'll find that every year there are 10-15 new speaker companies, and 10 - 15 speaker companies that have disappeared.

* It has been said that just about anybody can build speakers. There is much truth to this. The difficult parts, in no particular order:
- Designing them to sound not just good, but very good
- Designing them so they can be built in an efficient manner
- Designing them so they look good
- Designing them to be reliable (tougher than you might think)
- Getting the word out (marketing)
- Employing and supporting a quality work force
- Supporting customers
- Dealing with the minor details like economic swings, vendors not delivering, vendors jacking up prices, vendors changing specs without telling you, shipping damages, insurance, etc.
- Having adequate capital to do all the above

After all these years, I personally stick get a huge kick out of this whole business/hobby
Have a great weekend!

 

[Gary D. Gray]

Obviously, this will vary with company. But how much of my $1,000 B&W, Paradigm, Def Tech (non-internet) speaker purchase is markup? And how does that compare to electronics such as integrated receivers?

 

[Chuck Schilling]

Not to be argumentative, but why on earth does this matter to you? Do you ask the clerk at McDonald's what their product cost for that Big Mac is? Does the clerk at Kroger tell you what their profit margin is? I've never understood this desire to pick apart the economics of companies with whom you may do business - the product you buy is either worth (in your own perception) the money you spent on it, or it is not. Why on earth is the manufacturer's cost important to you? It isn't as though speakers have intrinsic value - you can't eat them, can't live in them, can't wear them or use them to keep you warm - so obviously the "value" is purely in your own perception.

 

[Tim Ranger]

Mike:

So you made so much money off me and my friends you bought a yacht! Heck, when I get my Talismans you'll be able to get a bigger one. Congrats on your new, monster sub. Me, I'm plenty happy with my Titan II.