But that exactly seems part of what he does.
Talking about Schiit, here is Jason Stoddard from his book "Schiit Happened". It sounds pretty much like Ken Kessler. It is of course up to the individual readers if they agree or not:
The Audio Biz and Loss of Perspective
Okay, let’s get some stuff out of the way. In my opinion, we work in an industry with some profoundly broken corners. I’ve mentioned that Mike *) and I got out of high-end largely because we didn’t want to chase the then-new trend of “superprice audiophilia.” The price escalation for the sake of price escalation, with no new ground broken in terms of technology—that wasn’t for us.
And today, it’s a hundred times worse. People argue over $20k+ DACs. Reviews of $40k preamps are common. There are dozens of speaker models with retail prices over $100k. I was told that a “moderate price” system was $250–500k at a recent show, by a guy who said it with no trace of irony in his voice.
Let’s be clear. This is insanity.
Obsessing over a $250k system is out-and-out nuts, no matter how much you make. Period. Get out. Buy a Ferrari. Get laid. Listen to real music. Start a band. Travel the world. This is what people do when they haven’t lost perspective.
Similarly, producing products that cater to this uber-priced segment is nuts. It just fuels an additional “my price is bigger than your price,” escalation—and this escalation usually doesn’t result in pushing the limits of actual audio performance, except in a handful of cases where implementation is astoundingly challenging (I’m thinking of discrete R2R DACs, and, to a lesser extent, turntable designs.)
Yes, I’m indicting an entire sector of the industry, but that is my honest opinion.
[...]
Traditional two-channel audio has the “Buick disease.” It’s moribund, almost literally. Over 70, you lose 10% of your customers a year. Over 60, 5%. That’s basic actuarial table stuff. And you can’t make up for the loss by increasing your product costs forever. Eventually, the last 200 people who think a $120,000 DAC is a good idea will die off, and you’re done.
__________
*) he refers to the co-owner of Schiit, Mike Moffat of Theta Digital fame, one of the pioneers of digital audio
Hello Al,
We’ve already been here before, and recently, but as an addendum of sorts: Can we talk “perspective” for a moment?
If my system cost me, say, $10000, I spent more than the GDP of one-hundred and twenty six countries,
and greater than the GDP of the poorest nineteen countries combined.
If I paid $2299 for an amp, or a pair of interconnects, or indeed, Schiit’s own Yggdrasil, I spent more than the GDP of the six poorest countries combined.
Kessler finds it hard to understand how manufacturers “have managed, like politicians, to convince themselves -- let alone consumers -- that a length of wire or MC cartridge can have the same price, let alone worth, as an SUV”, does he?
Then perhaps he needs to look wider than the redundant comparison above and ask why a smartphone from Apple or Samsung - the utility value of which is far superior in functionality to most other consumer goods due to its “indispensableness” to modern life and the way we communicate, navigate, organise and document our lives - comes in at so much less in retail price than, say, the Yggdrasil DAC, which only does one thing (convert zeroes and ones to an analogue signal) when a smartphone can already do that for us…?
And why are our smartphones so cheap compared to the Yggdrasil or an interconnect or a low-output MC cart, not to mention “worth more” in utility value?
Because the labour practices, ethics, environmental impact and economic devastation wrought on nations mining the basic materials and assembling the components that go into every smartphone comes at the cost of the world’s poorest (yet mineral rich) countries, in which many of the workers are not only paid between $1 and $2 a day for twelve to twenty-four hour shifts, but an estimated 40000 of them are children (1) (2) (3).
That is, my smartphone is not “worth” $600. Had the material and labour costs of what actually went into my smartphone come from ethical practices and environmentally-sustainable resources in which those who dug the cobalt out of the ground and assembled them in factories no one wants you to take photos of were paid at the US minimum wage, it would be several orders of magnitude more expensive - not because a phone would be considered a “luxury product”, but because it would be a true reflection of a world in which we acknowledge that someone’s time, effort and energy is valuable, deserved compensation that was “fair” and did not come at the expense of their exploitation.
How then should we measure a DAC, or a cartridge, or a pair of interconnect’s “worth”? By the enjoyment they bring us? Seems reasonable. But it’s very easy to enjoy something when I’m blinded to the suffering of someone else whose exploitation affords me that same enjoyment.
What then should be the variables of what constitutes “worth” when considering luxury products of limited utility value, of which our systems surely are? How about whatever it would cost to research, design, test, approve, manufacture, market and sell that product in a way that valued the time, effort and energy of every part of the process and was compensated fairly without the exploitation of those who contributed to its creation and the Earth in which those materials were taken from?
If so, then the very least I can do - given the enormous disparity of wealth I am fortunate to enjoy largely because of my gender, nationality and time of birth - is choose manufacturers whose products adhere to those values as closely as possible, and provide a level of enjoyment that comes not only from their subjective performance, but the knowledge its provenance comes via a process of lessened exploitation. And though it’s possible it may offend the world-view of Mr. Kessler and Mr. Stoddard, in many cases, that will mean paying prices many consider “insane”.
Be well my friend,
853guy
(1) UNICEF estimate, 2012, investigation into child labour practices and cobalt mining in the Democratic Republic of Congo, from which over half of all the mined cobalt in the world is extracted.
(2) Amnesty International report, 2016.
(3) BBC report into worker abuses at one of Apple’s Chinese factories and the supply chain for tin mined from the Indonesian island of Bangka.