What I meant is that if a brand can induce enough snob appeal by heavy snob-oriented marketing, they find that their demand curve shifts upward. They can charge more per unit and make fewer units and still have more dollar volume. A Rolex is a self-winding stainless steel watch for $4,000. You can get an Omega that is just as good for half the price. A Cadillac is made of the same steel, glass, paint and leather as a Chevy, but the name (which has been hyped with marketing) lets them charge far more money. One Swiss watch maker even doubled the price of its watches a couple years ago, knowing that due to its higher prices, it could produce and sell fewer but still have higher revenues. Your revenues minus your costs = net income before income taxes. I hope KEF stays sort of obscure, with great prices to match.
Quote:
Originally Posted by pbarach 
Are you sure? If KEF is trying to sell products that they don't promote, they won't sell many and their manufacturing cost per unit will be higher. Not only that, their dealer network is quite scarce in some areas of the US compared to their competitors (B&W, Paradigm). For example, they list only 3 dealers in all of Ohio, and 2 out of the 3 are system installers (maybe the third is, too--I'm not sure).

Are you sure? If KEF is trying to sell products that they don't promote, they won't sell many and their manufacturing cost per unit will be higher. Not only that, their dealer network is quite scarce in some areas of the US compared to their competitors (B&W, Paradigm). For example, they list only 3 dealers in all of Ohio, and 2 out of the 3 are system installers (maybe the third is, too--I'm not sure).






























