Musings on Inflation and depreciation in Hi End Audio

dcathro

Well-Known Member
Sep 16, 2016
571
718
228
Melbourne, Australia
I find it interesting to compare todays Hi End offerings to those from many years ago. This of course can be done for sound quality, but also on a price basis.



The sound quality comparison has been discussed, with some people preferring vintage horn speaker, but with most people agreeing that audio equipment has continued to improve. I don’t really want to debate that, but am just interested in the effects of inflation and depreciation on pricing.

Now to do this I am going to use Shadowstasts inflation calculator which uses the 1980 CPI measurements rather than any of the current government inflation calculators that give artificially low results. And we all know that prices in Hi End audio have not been stagnant.

I would like to use a couple of equipment examples from when I first got into hifi – mid 1970’s. These items were statement products of their time, but would not be taken seriously today.

The first example is the Kef R105 released in 1977.

1638266525970.png


I remember when these arrived in my local hifi store, in Melbourne Australia, I lusted after them so badly but they were just so far out of my ability to pay for them. I was in my first job and grossed about A$3000, while the R105s sold for about A$3600 (In those days Australia had import duties on imported luxury goods which could double the cost).

This would be the same today as having a gross income of $110,000 and wanting to buy some Wilson Alex Vs. They would have to go on credit.



The second example is the Luxman M6000 power amp which was released in 1975 and sold for something like US$6000 (much more in Australia). I never saw one of these in the flesh until many years later in a second-hand store.

1638266038338.png

Now lets look at what these items would cost if manufactured and sold new today. Using the Shadowstats inflation calculator, having taken 50% off the Kef R105s to remove the tax to get A$1800, we get an inflated price of around A$60,000 today, which is comparable to many similar sized mid-range hi-end speakers today. Interestingly, these speakers can occasionally be picked up on the second hand market, in good condition, for something like $1,500, which shows the effect of depreciation over time

The inflation adjusted price of the Luxman M-6000, would be US$225,000, comparable to some of the current hi-end offerings. Interestingly the M-6000 can be had, refurbished, for around US$6000.

One item that has bucked the depreciation trend a bit is the BBC LS3/5a, which had a revival due to being promoted very heavily by Ken Kessler. These cost about $400 when they came out in 1977, which would be about $13,400 today. An original pair in very good condition can fetch between $3000 and $5000.

What do you think?
 

Addicted to hifi

VIP/Donor
Sep 8, 2020
4,610
2,039
265
52
Australia
I find it interesting to compare todays Hi End offerings to those from many years ago. This of course can be done for sound quality, but also on a price basis.



The sound quality comparison has been discussed, with some people preferring vintage horn speaker, but with most people agreeing that audio equipment has continued to improve. I don’t really want to debate that, but am just interested in the effects of inflation and depreciation on pricing.

Now to do this I am going to use Shadowstasts inflation calculator which uses the 1980 CPI measurements rather than any of the current government inflation calculators that give artificially low results. And we all know that prices in Hi End audio have not been stagnant.

I would like to use a couple of equipment examples from when I first got into hifi – mid 1970’s. These items were statement products of their time, but would not be taken seriously today.

The first example is the Kef R105 released in 1977.

View attachment 85552


I remember when these arrived in my local hifi store, in Melbourne Australia, I lusted after them so badly but they were just so far out of my ability to pay for them. I was in my first job and grossed about A$3000, while the R105s sold for about A$3600 (In those days Australia had import duties on imported luxury goods which could double the cost).

This would be the same today as having a gross income of $110,000 and wanting to buy some Wilson Alex Vs. They would have to go on credit.



The second example is the Luxman M6000 power amp which was released in 1975 and sold for something like US$6000 (much more in Australia). I never saw one of these in the flesh until many years later in a second-hand store.

View attachment 85545

Now lets look at what these items would cost if manufactured and sold new today. Using the Shadowstats inflation calculator, having taken 50% off the Kef R105s to remove the tax to get A$1800, we get an inflated price of around A$60,000 today, which is comparable to many similar sized mid-range hi-end speakers today. Interestingly, these speakers can occasionally be picked up on the second hand market, in good condition, for something like $1,500, which shows the effect of depreciation over time

The inflation adjusted price of the Luxman M-6000, would be US$225,000, comparable to some of the current hi-end offerings. Interestingly the M-6000 can be had, refurbished, for around US$6000.

One item that has bucked the depreciation trend a bit is the BBC LS3/5a, which had a revival due to being promoted very heavily by Ken Kessler. These cost about $400 when they came out in 1977, which would be about $13,400 today. An original pair in very good condition can fetch between $3000 and $5000.

What do you think?
i remember both of these products Sota at the time.I seem to agree with you.both still good sounding even by today’s standard.hifi has definitely improved but not as much as say tvs.
 

spiritofmusic

Well-Known Member
Jun 13, 2013
14,601
5,411
1,278
E. England
Hmm, what price a used AF0 WadaxRef DAgostinoRelentless M9 system in 2060?
 

dcathro

Well-Known Member
Sep 16, 2016
571
718
228
Melbourne, Australia
Hmm, what price a used AF0 WadaxRef DAgostinoRelentless M9 system in 2060?

Better book into a Cryogenic clinic!

Actually, probably over a million dollars, but it may cost you $2000 for a loaf of bread! :)
 

Cableman

Well-Known Member
Dec 27, 2013
373
143
175
I find it interesting to compare todays Hi End offerings to those from many years ago. This of course can be done for sound quality, but also on a price basis.



The sound quality comparison has been discussed, with some people preferring vintage horn speaker, but with most people agreeing that audio equipment has continued to improve. I don’t really want to debate that, but am just interested in the effects of inflation and depreciation on pricing.

Now to do this I am going to use Shadowstasts inflation calculator which uses the 1980 CPI measurements rather than any of the current government inflation calculators that give artificially low results. And we all know that prices in Hi End audio have not been stagnant.

I would like to use a couple of equipment examples from when I first got into hifi – mid 1970’s. These items were statement products of their time, but would not be taken seriously today.

The first example is the Kef R105 released in 1977.

View attachment 85552


I remember when these arrived in my local hifi store, in Melbourne Australia, I lusted after them so badly but they were just so far out of my ability to pay for them. I was in my first job and grossed about A$3000, while the R105s sold for about A$3600 (In those days Australia had import duties on imported luxury goods which could double the cost).

This would be the same today as having a gross income of $110,000 and wanting to buy some Wilson Alex Vs. They would have to go on credit.



The second example is the Luxman M6000 power amp which was released in 1975 and sold for something like US$6000 (much more in Australia). I never saw one of these in the flesh until many years later in a second-hand store.

View attachment 85545

Now lets look at what these items would cost if manufactured and sold new today. Using the Shadowstats inflation calculator, having taken 50% off the Kef R105s to remove the tax to get A$1800, we get an inflated price of around A$60,000 today, which is comparable to many similar sized mid-range hi-end speakers today. Interestingly, these speakers can occasionally be picked up on the second hand market, in good condition, for something like $1,500, which shows the effect of depreciation over time

The inflation adjusted price of the Luxman M-6000, would be US$225,000, comparable to some of the current hi-end offerings. Interestingly the M-6000 can be had, refurbished, for around US$6000.

One item that has bucked the depreciation trend a bit is the BBC LS3/5a, which had a revival due to being promoted very heavily by Ken Kessler. These cost about $400 when they came out in 1977, which would be about $13,400 today. An original pair in very good condition can fetch between $3000 and $5000.

What do you think?
Good old KK. The Rolex of reviewers :)
 

Addicted to hifi

VIP/Donor
Sep 8, 2020
4,610
2,039
265
52
Australia
I purchased a pair of klipschorn speakers in 1981 for $1800 and now the current model is $35 thousand in Australia.I think I could make a profit on these.
 

Gregm

Well-Known Member
Mar 14, 2019
525
381
155
France
My (empirical) take is that when it comes to NON-HORN loaded speakers, today's offerings are superior and, in relative terms, less expensive.
This most probably due to widespread availability of modelling software, research, & test facilities (Thiele presented his research in '68 or thereabouts, I think).
Current cheapo speakers are also quite good.
 

Gregm

Well-Known Member
Mar 14, 2019
525
381
155
France
My old Luxman L31 integrated from the mid '70, as I remember it sounded sweet (which probably means it rolled off upper frequencies...) and very dynamic driving the smallish diy horns that a friend had lent me. I.e. nothing like a CH or a Soulution or even a A class A Symphonic.
 

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