Rod, [mention=108824]legend[/mention] , I don't believe the 1960s-1980s model is applicable today. Putting aside the sub-$1000 components, hifi has moved into a luxury goods situation. Don't think "what sells Toyotas and how do we set a price", think "what sells Bentleys". I remember attending a talk by Halcro's main man, Bruce Candy, and his main marketing man, during their peak. They didn't advertise in AHF. They said they were actively advertising in 'billionaire's club' magazines, magazines that you don't know about and will never see in a newsagent because they who buy it never set foot in a newsagent. (OTOH I regret bringing up Halcro in a thread about rip-offs, because their amps were incredible physical constructions that set new benchmarks for low noise and distortion combined with high continuous peak power -- even ME amps look like something Steptoe and Son would cobble up next to a Halcro.) As a luxury good, higher-priced hifi gear is definitely high-markup compared to component costs. The proof lies when you compare them to pro audio and AV gear prices. The technology (and performance) in a $3000 AV receiver makes a $3000 hifi amp look like a 1925 Austin Seven next to a 2017 Mercedes S Class. Which is ironic considering which one is sold as a luxury good. And look at studio monitors -- for $1000 each you can buy a Neumann or JBL speaker that combines low-distortion high-output drivers, waveguide, two power amps totalling 200W (real watts not marketing watts), active crossover, preamplifier, and power supply. Per channel. They even include the power cord! Don't even want to think about what the hifi industry would want to charge for such a product sold into the 2-channel audio sector if they had a free hand and no fear of competition from the pro audio sector (OK I looked -- I think the Meridian DSP3200 active bookshelves are RRP$8500?). They would want to charge $1000 for the stands, not the speakers. And when you think about it, the hifi industry has done a remarkably good job of building a 'mental wall' in the minds of their consumers to keep pro audio and AV products out of their space.