Law of diminisning returns

rubin
rubin Posts: 565
edited July 2009 in 2 Channel Audio

Hello to all CP members & visitors.In regards to this topic at what price point do you think this (law) kicks in?This is considering a two ch. rig with seperates,a cd source,fullrange towers,and a dedicated subwoofer. Most articles I've read indicate $5,000.00 usd pretty much is the limit for " good bang for the buck" returns, of the equipment mentioned.Personally I have over $12,000.00 invested (origional purchase) including IC's and cables.With no regrets.I'm not asking anyone to give a tally of their investment,just interested in your thoughts.
Post edited by rubin on
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Comments

  • TNRabbit
    TNRabbit Posts: 2,168
    edited June 2009
    Depends entirely on YOU. Everyone's threshold is different. For some, Wal-Mart is the threshold...
    TNRabbit
    NO Polk Audio Equipment :eek:
    Sunfire TG-IV
    Ashly 1001 Active Crossover
    Rane PEQ-15 Parametric Equalizers x 2
    Sunfire Cinema Grand Signature Seven
    Carver AL-III Speakers
    Klipsch RT-12d Subwoofer
  • rubin
    rubin Posts: 565
    edited June 2009
    TNRabbit wrote: »
    Depends entirely on YOU. Everyone's threshold is different. For some, Wal-Mart is the threshold...

    I would think the articles I read pertain to those of us with middle class incomes and with above average interest in audio.
  • danz1906
    danz1906 Posts: 5,144
    edited June 2009
    I would say in the $10,000 range,most equipment in the $5000.00 to 10,000.00
    range are very very good.Once you go higher you get 2 to 3% better at most.
    Linn AV5140 fronts
    Linn AV5120 Center
    Linn AV5140 Rears
    M&K MX-70 Sub for Music
    Odyssey Mono-Blocs
    SVS Ultra-13 Gloss Black:D
  • AudioGenics
    AudioGenics Posts: 2,567
    edited June 2009
    contrast that with folks that are into fine Art, automobiles, planes, etc....
  • tcrossma
    tcrossma Posts: 1,301
    edited June 2009
    I don't think you can put a total price point on it like that. If someone spends $4000 for their speakers and $1000 between the rest of their components and cables, they are not going to be happy. If you consider $5000 split between components, which components are we talking about? Just speakers, amp, and pre? Or including cables? Maybe a pre with HT bypass and AVR? How about a TT? Tubes?

    Way too many variables to put a single "point of no return" figure on the entire system.
    Speakers: Polk LSi15
    Pre: Adcom GFP-750 with HT Bypass
    Amp: Pass Labs X-150
    CD/DVD Player: Classe CDP-10
    Interconnects: MIT Shortgun S3 Pro XLR
    Speaker cables: MIT MH-750 bi-wire
    TT:Micro Seiki DD-35
    Cartridge:Denon DL-160
    Phono Pre:PS Audio GCPH
  • Face
    Face Posts: 14,340
    edited June 2009
    $4786.86.
    "He who fights with monsters should look to it that he himself does not become a monster. And when you gaze long into an abyss the abyss also gazes into you." Friedrich Nietzsche
  • nooshinjohn
    nooshinjohn Posts: 25,418
    edited June 2009
    The law of deminishing returns is present from the first dollar spent. At which point we call it quits is up to the individual.
    The Gear... Carver "Statement" Mono-blocks, Mcintosh C2300 Arcam AVR20, Oppo UDP-203 4K Blu-ray player, Sony XBR70x850B 4k, Polk Audio Legend L800 with height modules, L400 Center Channel Polk audio AB800 "in-wall" surrounds. Marantz MM7025 stereo amp. Simaudio Moon 680d DSD

    “When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
  • BlueFox
    BlueFox Posts: 15,251
    edited June 2009
    rubin wrote: »

    Hello to all CP members & visitors.In regards to this topic at what price point do you think this (law) kicks in?This is considering a two ch. rig with seperates,a cd source,fullrange towers,and a dedicated subwoofer. Most articles I've read indicate $5,000.00 usd pretty much is the limit for " good bang for the buck" returns, of the equipment mentioned.


    Is that $5000 a piece for each component, or $5000 total? If total then I feel you have a way to go before it kicks in. While a $5K system will sound great, clear, obvious, audible improvements should result from more expensive equipment. On the other hand, IMO, if you paid $5K for each piece then you probably will get only minor improvements by buying even more expensive equipment. In fact, I suspect you could pay $2500, or less, for each component (5K for two speakers), and it will be close to the $5K per component level in quality.

    I wish I had the money to verify my opinion. :rolleyes:
    Lumin X1 file player, Westminster Labs interconnect cable
    Sony XA-5400ES SACD; Pass XP-22 pre; X600.5 amps
    Magico S5 MKII Mcast Rose speakers; SPOD spikes

    Shunyata Triton v3/Typhon QR on source, Denali 2000 (2) on amps
    Shunyata Sigma XLR analog ICs, Sigma speaker cables
    Shunyata Sigma HC (2), Sigma Analog, Sigma Digital, Z Anaconda (3) power cables

    Mapleshade Samson V.3 four shelf solid maple rack, Micropoint brass footers
    Three 20 amp circuits.
  • rubin
    rubin Posts: 565
    edited June 2009
    Face wrote: »
    $4786.86.

    Hmmm.... or perhaps $4786.87
  • rubin
    rubin Posts: 565
    edited June 2009
    The articles and other peoples opinions suggest that after 5K (for a complete system) big bucks are needed for less and less benifets. From 1K to 5K the gains vs cost are relatively in line.From 5Kto 10K,20K etc.,the gain vs cost drops off. However for those with $$$$$$$$$$$$ to burn,it's of not much of a concern but to us average guys the cost vs gain factor is reality.EG. a pair of $900.00 speakers to 3K speakers= BIG DIFFERENCE in sound 3K to 6K not as much and so on . If I could afford it, I would spend 500K or more but 90 percent of us are in that 5to 10K bracket.
  • NewHTguy
    NewHTguy Posts: 584
    edited June 2009
    The law of deminishing returns is present from the first dollar spent. At which point we call it quits is up to the individual.

    Pretty much in agreement. Would say that the returns beyond my first pair of R50s and Onk 605 have been diminishing. But I love my present system and would never want to go back.
    MAIN: Polk Lsi9s; Polk PSW505; Lsic (in box); Onkyo SR-875; Parasound 2250; Cambridge Audio 740C; LG BD370
    OFFICE: Polk Lsi7; REL T3; HK 3490; CA 840W; Onkyo C-S5VL
    BENCHED: CS20; OWM3s
  • rubin
    rubin Posts: 565
    edited June 2009
    My first system--- an 8 track player & 2 small speakers $100.00 Next system ---- receiver, t-table ,full fange speakers $1400.00 HUGE IMPROVEMENT.Next system---- 5K still a good improvement.Current system 12K + a fairly good improvement .
  • snow
    snow Posts: 4,337
    edited June 2009
    rubin wrote: »
    My first system--- an 8 track player & 2 small speakers $100.00 Next system ---- receiver, t-table ,full fange speakers $1400.00 HUGE IMPROVEMENT.Next system---- 5K still a good improvement.Current system 12K + a fairly good improvement .
    Oppinions will vary greatly on this subject and I dont believe there is any true answer for all people, some of us have better hearing then others and even though you may be able to hear an estimated 50% improvement in going from lets say a $500.00 CD player to a $1500.00 CD player it doesnt mean that some will only notice a 10% improvement or none at all. And all price point components arent all equal audio wise, one $2000.00 amp retail may sound better than many $5000.00 amps retail.

    Also if you buy used vs retail you can get many more times the $$ amount in audio value. Does a $6500.00 retail pre/pro that sells used for $800.00 sound better than a new $3500.00 pre/pro? I think that at some point there is enough of a disminshing return that it wouldndt make good sense to spend the extra $$ but at 12k total you probally havent reached that point yet. My only advice is to research the hell out of things and listen to as many audio items that you can then decide what you want and if possible wait a year or two then grab it, the price will most likely be cut by 50% then and the product will probablly be barely broke in.



    REGARDS SNOW
    Well, I just pulled off the impossible by doing a double-blind comparison all by myself, purely by virtue of the fact that I completely and stupidly forgot what I did last. I guess that getting old does have its advantages after all :D
  • rubin
    rubin Posts: 565
    edited June 2009
    snow wrote: »
    Oppinions will vary greatly on this subject and I dont believe there is any true answer for all people, some of us have better hearing then others and even though you may be able to hear an estimated 50% improvement in going from lets say a $500.00 CD player to a $1500.00 CD player it doesnt mean that some will only notice a 10% improvement or none at all. And all price point components arent all equal audio wise, one $2000.00 amp retail may sound better than many $5000.00 amps retail.

    Also if you buy used vs retail you can get many more times the $$ amount in audio value. Does a $6500.00 retail pre/pro that sells used for $800.00 sound better than a new $3500.00 pre/pro? I think that at some point there is enough of a disminshing return that it wouldndt make good sense to spend the extra $$ but at 12k total you probally havent reached that point yet. My only advice is to research the hell out of things and listen to as many audio items that you can then decide what you want and if possible wait a year or two then grab it, the price will most likely be cut by 50% then and the product will probablly be barely broke in.



    REGARDS SNOW

    Well said
  • reeltrouble1
    reeltrouble1 Posts: 9,312
    edited June 2009
    The first 96% of audio nivrana although needed is totally mundane.

    RT1
  • cnh
    cnh Posts: 13,284
    edited June 2009
    This is a really good question...and a lot of people with limited cash have asked it many times.

    At what point in the audio chain do we get to improvements that few if any can hear? And how much better are 50k speakers than 15k? Or 10K for that matter? The subjectivity involved here is LEGENDARY. I heard a 100K home audio system about a month ago....all Meridian (speakers and power) except for the two monster Atlantic Tech subs.

    It sounded very very good. Was I awed by it? Could I say that it was 2 or 3 times 'better' than a 15K-20K system? NO! But it was better...to a degree...what degree depends on WHAT 'you' consider an UPGRADE!

    I recently heard a 30K+ two channel Lyngdorf system, maybe it was more! The DP-1 speakers sounded suberb with solo instruments and acoustic fair--some of the BEST I've ever heard. So how does that compare with my equipment? Is it worth the extra money? I can't afford that...would rather buy a car!

    But there is NO doubt that as you increase the money you spend, up to a point, the sound improvement you get is diminished, i.e., you go from let's say 20 percent to 10 to 5 and then much finer gradations of improvement to the point where you're probably moving in 1 percent increments for every 10K or more invested. Of course if you're wealthy and have a wondrous ego...you'll tell yourself that a million dollar system is going to be many times that of the system I mention above. But if we're only talking 2 channel (not HT). I really don't think so.

    Then there's also the question, for those of us who are married, just how much are we going to spend on AUDIO before our wife walks or calls the men in the white coats. Especially us middle-class fellows who don't make 6 figures or more and have kids?

    cnh
    Currently orbiting Bowie's Blackstar.!

    Polk Lsi-7s, Def Tech 8" sub, HK 3490, HK HD 990 (CDP/DAC), AKG Q701s
    [sig. changed on a monthly basis as I rotate in and out of my stash]
  • reeltrouble1
    reeltrouble1 Posts: 9,312
    edited June 2009
    i heard some beveridge speakers, they were very nice.

    for those that want to rationalize what they do and why they need to its cool, I have always said just get the best you can as fast as you can.

    the magic is in the last little bit, but oh how good it sounds, those little 1% pops are everything and in terms of musical enjoyment jump the rig 33.3% better than the ordinary, sure you have to pay, sure its narcissistic, but worth every penny.

    At lunch today I went to the house with a long time non-audiophile friend who still loves music, he is leaving the area and I wanted him to hear the rig. He said " I feel like I am sitting front row center listening to the New York Philharomnic play Also Sprach, thank you so much for letting me hear this, I never knew how speakers could sound."

    RT1
  • cnh
    cnh Posts: 13,284
    edited June 2009
    i heard some beveridge speakers, they were very nice.

    for those that want to rationalize what they do and why they need to its cool, I have always said just get the best you can as fast as you can.

    the magic is in the last little bit, but oh how good it sounds, those little 1% pops are everything and in terms of musical enjoyment jump the rig 33.3% better than the ordinary, sure you have to pay, sure its narcissistic, but worth every penny.

    At lunch today I went to the house with a long time non-audiophile friend who still loves music, he is leaving the area and I wanted him to hear the rig. He said " I feel like I am sitting front row center listening to the New York Philharomnic play Also Sprach, thank you so much for letting me hear this, I never knew how speakers could sound."

    RT1

    I know you're right...but it's hard not to balk sometimes...but the journey does last a lifetime after all.

    Those Beveridge speakers, though pricey, look very interesting and pretty good looking as well. Wouldn't mind putting my ears to a set. At a lower level. I know what you mean.

    A friend of mine owns a vintage pair of EPIs which I've always liked. Last time I visited him he was powering those with a 100 dollar receiver...it made me cringe to see such a waste, so much that I brought down an old Denon amp I have and sold it to him for almost nothing (now he could do better than that) but I just wanted him to hear the difference between a good mid-fi amp and a cheap AVR. And he did...couldn't believe the difference. So I said...well, you can do even better if you want. But at least you can actually listen to your speakers now. I also threw in a cheap pair of bookshelves for free--and demoed them with both the Sherwood and the Denon. Even the bookshelves sounded like a different speaker.

    The guys/gals here, run all kinds of systems but, I've found that when we get together, surprisingly enough, and audition equipment--we more often AGREE than not! So much for all the contentious threads of recent months...unless we're all being subjected to some mass hypnosis...just kidding.

    cnh
    Currently orbiting Bowie's Blackstar.!

    Polk Lsi-7s, Def Tech 8" sub, HK 3490, HK HD 990 (CDP/DAC), AKG Q701s
    [sig. changed on a monthly basis as I rotate in and out of my stash]
  • thuffman03
    thuffman03 Posts: 1,325
    edited June 2009
    I have about $2400 into mine.

    Carver ALIII
    Carver TFM 55
    Carver SDA 490t
    Sunfire True Sub MK II
    Carver C-5
    Carver TX8
    Squezebox Duet
    Monster 3500mk2

    All was bought used except the Squezebox and it took me about 1 year to peace it all together. I figure if I were to buy what is new on the market with compairable equipment it would cost me about $15000.
    Sunfire TGP, Sunfire Cinema Grand, Sunfire 300~2 (2), Sunfire True Sub (2),Carver ALS Platinum, Carver AL III, TFM-55, C-19, C-9, TX-8, SDA-490t, SDA-390t
  • organ
    organ Posts: 4,969
    edited June 2009
    I think it depends on the individual and tastes. For every given price point, there are so many options (ribbons, planars, stats, horns, bipoles, etc) that just finding out which one you like can end up costing as much as big dollar systems.
    Some people can be happy as clams with 3w/ch SET amps and horns, while others prefer the sound of dynamic cones with big power to drive them. That's the great thing about audio. So many ways to enjoy our music.
  • john22614
    john22614 Posts: 214
    edited June 2009
    Rubin,

    I think 5 grand is a good sweet spot. I got there pretty much by chance with the money I invested in electronics, speakers and interconnects. If you divide that money roughly in half for speakers and electronics, I suspect anyone who does some decent research can find a great sounding system keeping in mind that does not include HT components. On so many occasions I've marveled at how great my system sounds in stereo, and yet sometimes wondered how more expensive components would perform. I doubt that I'll ever find out since I am so happy with what I have, and certainly have other things to spend my money on.
    B&W 804s mains
    B&W HTM4 center
    Polk PSW 1000 sub
    Outlaw 990 Pre Amp
    Anthem MCA 30 Amp
    Monitor Radius 180 surrounds
    Audiosource Stereo Amp for surrounds
    Denon 2910 Universal DVD/SACD Player
    Comcast DVR
    Pioneer Elite 42" Plasma 940 HD
    Harmony Universal Remote
    Blue Jeans interconnects and biwires
    Itunes Air Express
  • rubin
    rubin Posts: 565
    edited June 2009
    john22614 wrote: »
    Rubin,

    I think 5 grand is a good sweet spot. I got there pretty much by chance with the money I invested in electronics, speakers and interconnects. I suspect anyone who does some decent research can find a great sounding stereo system for that amount keeping in mind that does not include HT components. On so many occasions I've marveled at how great my system sounds in stereo, and yet sometimes wondered how more expensive components would perform. I doubt that I'll ever find out since I am so happy with what I have.

    It's all about your personal satisfaction,congrats..
  • organ
    organ Posts: 4,969
    edited June 2009
    You can also go used. 2-3k of used gear can sound really damn good.
  • rubin
    rubin Posts: 565
    edited June 2009
    organ wrote: »
    You can also go used. 2-3k of used gear can sound really damn good.

    Yes I'm sure it will,to bad I'm not comfortable buying used.Especially $$ stuff
  • organ
    organ Posts: 4,969
    edited June 2009
    Then I'll say 5k. Probably the most bang for your $ when buying new.
  • Ern Dog
    Ern Dog Posts: 2,237
    edited June 2009
    Interesting thread.

    For me I've been getting a significant improvement in sound quality with each upgrade. I'm to the point where I'm very satisfied with my rig now. I'm at a place where I don't want to spend more on upgrading major components. I could see myself doing lateral moves to try out different gear and of coarse upgrading IC's, PC's, tubes, etc.

    I think this decision is a very personal choices with lots of variables and there is no wrong ways of doing it. My main priority is to have fun because this is my favorite hobby. Listening to music has always been an important part of my life.
  • reeltrouble1
    reeltrouble1 Posts: 9,312
    edited June 2009
    The longer you take to get there the shorter the time left to enjoy the sounds.

    Enjoy the ride.

    RT1
  • rubin
    rubin Posts: 565
    edited June 2009
    I've listened to stereos which prices enter the stratosphere,and were VERY impresive.When I returned back home and listened to mine.... well yep they were always better,but man the cost just blew me away.
  • reeltrouble1
    reeltrouble1 Posts: 9,312
    edited June 2009
    have you studied the Law of Limited Necessity?? Just don't confuse an essential with a necessity.

    RT1
  • madmax
    madmax Posts: 12,434
    edited June 2009
    I used to somewhat believe in the law of diminishing return. Then I pumped some huge money into some huge speakers and a nice preamp and the difference was amazing! Well worth the cost. I'm still thinking the preamp and speakers are the place to vary from the the law, maybe turntable stuff too. Secondary would be the amps, interconnects, source, wires, conditioners and everything else but I'm still thinking there is a quasi limit there... :)
    madmax
    Vinyl, the final frontier...

    Avantgarde horns, 300b tubes, thats the kinda crap I want... :D