AVS Special Member
Join Date: Apr 2004
Location: Kansas City, MO
Mentioned: 377 Post(s)
Tagged: 2 Thread(s)
Quoted: 2626 Post(s)
JTR markup is not significant given the topshelf components he uses. Over and over in the DIY threads people say they want a JTR copycat speaker, but DIY to save cost, and over and over the knowledgable DIY guys say you can't do it at a significant enough cost savings to be worth the effort, and the poster should just buy from JTR if he wants a similar speaker with the same components. Don't take my word for it, look it up yourself.
JTR costs more than klipsch, because what n8dogg said --- every single aspect about the speaker is better quality. (Thick and strong baltic birch wood, heavy duty binding posts, incredibly high quality crossovers with lifetime rated capacitors and components, and top shelf -- best of class speaker drivers). In contrast Klipsch uses middling components in pretty boxes. The cost of the actual components making up a klipsch speaker as compared to a JTR speaker at similar asking price is probably 1/4 to 1/3 at most. Compare pictures of klipsch speaker guts compared to JTR speaker guts by web searching images online.
People have regularly asked Jeff why he doesn't sell on partsexpress or similar resellers, he has stated because their ~15% markup would eliminate his profit. In 2012 he said on some items that would actually cost him money to sell through them
Your point about them being too expensive is misplaced. Rather it is fair to ask why he doesn't make a lesser product with cheaper components to compete in the lower price tiers for those with less disposable income. I've asked Jeff that myself, and the sentiment I've heard Jeff relay is because he can't meet his own personal standards and expectation of excellence at lower price tiers.
One would also assume (realizing Jeffs profit margins are thin) it would be harder to compete against the mass market fodder at the lower price points and still make a small business work. After all, 15% profit on a $2000 speaker is 300 bucks. 15% on a $200 speaker is 30 bucks. As a small business where the owner personally builds all speakers and crossovers inhouse, and who typically has enough customers to keep him beyond busy --- as that business proprieter, which speaker would you rather spend your time building and selling?
Last edited by Archaea; 01-03-2016 at 08:25 AM.