When you start up the biz you need capital, there is a cost to that. You gotta pay interest to the bank or return on the investment for the investor.
Then you got R&D costs, cost to make jigs and molds, acquiring machinery, marketing & promotions cost, packaging, PR cost etc etc. You then need to factor in shipping cost, customer service, the occasional rejects & lemons.
Using third party to supply something like a speaker box that is manufactured to your own design will involve ‘minimum order quantity’. Huge MOQ means lower cost per unit. How many can one order for its new product? There’s no crystal ball.
Lets not forget that some target the high end market. Their volume won’t be that much so adjustments need to be made.
So now you have the cost per unit (on the basis that you intend to sell say a total of X amount of units).
Then just like the F&B biz where you want to ensure food cost is 30% of the price, the same methodology works for hifi too.
Even when a manufacturer sells direct, they won’t lower the retail price by that much. Let’s just assume the unit retails at £1,000 and dealer makes £300 and the distributor makes £150. Even with direct sale, the manufacturer ain’t gonna lower the retail price by £300 whilst adding another £150 to their bottom line. They will push it close to £1,000 and max out on profits.
This is just reality.