How much does it REALLY cost to make a sub?

[DaFreakinRican0 10+ year member]

Hey guys i just had a random question. How much do you really think it costs to make subs? I know u pay for quality and brand name, but i mean the parts are not that expensive. How long u think it takes to make one? I have NO idea wat it costs but was just curious.

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[bimma85 5,000+ posts]

I bet R&D is ungodly expensive for some.

 

[nosaj070 10+ year member]

Most of the money is devoted to R&D, also in order for a buildhouse to put a sub into production you need to order like 50 of them or something of the like. There is a profit margin, but I don't think it is as high as many people think.

 

[BeanII 10+ year member]

oh no, speakers are the most profitable area in all of 12 volt....... well all of it's fairly profitable, but speakers are huge..

Lets say a retailer sells a pair of 6.5" coaxials for $100.

You can count on that pair costing the retailer between $40 and $50. That's a 50 - 60% markup right?

Well I promise you that the manufacturers don't make less than the (margin %) retailers do.

It's head units that don't have the margin they used to. On average head units are about 35% - 40%

Anyway, R&D is a big part of production cost of speakers. But, one thing to keep in mind is how many of them "share" parts. Look at the XXX, does that basket look familiar? No R&D there. That's pretty common and the XXX basket is just one of hundreds of examples.

 

[bimma85 5,000+ posts]

oh no, speakers are the most profitable area in all of 12 volt....... well all of it's fairly profitable, but speakers are huge..
Lets say a retailer sells a pair of 6.5" coaxials for $100.

You can count on that pair costing the retailer between $40 and $50. That's a 50 - 60% markup right?

Well I promise you that the manufacturers don't make less than the (margin %) retailers do.

It's head units that don't have the margin they used to. On average head units are about 35% - 40%

Anyway, R&D is a big part of production cost of speakers. But, one thing to keep in mind is how many of them "share" parts. Look at the XXX, does that basket look familiar? No R&D there. That's pretty common and the XXX basket is just one of hundreds of examples.

I believe he meant the manufacturer doesn't make as much as folks would think. But yes dealers make great money on speakers and subs.... that is not there highest profit margin area. That would be the install items? //content.invisioncic.com/y282845/emoticons/crazy.gif.c13912c32de98515d3142759a824dae7.gif they pay $.50 for ft of 0ga and sell it for $5.

 

[jujumantb 10+ year member]

I believe he meant the manufacturer doesn't make as much as folks would think..

And HE said...

You can count on that pair costing the retailer between $40 and $50. That's a 50 - 60% markup right?
Well I promise you that the manufacturers don't make less than the (margin %) retailers do.

but of course you read that part right? //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[Prowler573 5,000+ posts]

There is a profit margin, but I don't think it is as high as many people think.

I would have to disagree with that statement. If you buy 'X' subwoofer from an authorized retailer it will cost you 'Y' amount of money. Yes, for that retail price from an authorized dealer you get full warranty, etc, etc.

But then look on eBay for the exact same 'X' subwoofer offered by a non-authorized dealer and the cost difference is usually pretty significant. No, you won't get the same manufacturer support that you do buying retail but is that huge markup percentage truly necessary to support the overhead of an authorized dealer? I don't think so, personally.

I paid retail price for my DAT M6 because I wanted the three-year warranty. Had I been willing to forgo the warranty, however, I could almost have bought 2 of them off of eBay for the same money. No huge profit margin there? Hmmph.

 

[bimma85 5,000+ posts]

And HE said...
but of course you read that part right? //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

hahaha i didnt see that actually but if you guys are gonna try to tell me that all these companies are making 100%, then I //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif. Paying 50 and selling for $100 would be 100% markup. A manufacturer selling millions of items is not looking to double there money on each item. //content.invisioncic.com/y282845/emoticons/rolleyes.gif.c1fef805e9d1464d377451cd5bc18bfb.gif The retailer has a greater markup% but at the same time doesnt sell near what say alpine or kicker would.

 

[AVSTANG02]

wtf kind of stupid question is this anyways? lol

 

[hdave 10+ year member]

i think its a great question.

i wanna know the answer too.

hey polecat, wanna let us all in on some kicker factory secrets?

 

[DaFreakinRican0 10+ year member]

wtf kind of stupid question is this anyways? lol

If you didnt care you shouldnt have clicked on the thread. It MUST have caught ur attention enought for you to read the post.

 

[cjjackson85 5,000+ posts]

5-10 bucks...

 

[flakko 5,000+ posts]

yea we pay 2 bills for a sub that costs only 20 bucks to make...

 

[Justintoxicated 10+ year member]

money only has a made up value anyway which the government sets.

 

[cjjackson85 5,000+ posts]

No shit.