- Joined
- Aug 16, 2025
- Messages
- 27
- Likes
- 29
- Thread Starter
- #21
I do have in my mind a balanced version of THA-1 with twice the complexity and part requirement. That one will have to be $1k+ and justifiably so.
Yes, correct. However, the production unit will be reconfigured for a more sustainable power level.So the SE THA-1 will have an expected output power of around 0.7W in 300ohm and maybe up to 4W in 32ohm.
What value volume control resistance ?
I assume RK271 series ?
I appreciate this goal for sure. I would just say that speaking from experience working in consumer audio, for a value oriented product the retail price should be at least 3x your cost and preferably closer to 5x. Once taxes, shipping, and returns (e: and packaging! Some sticker shock there...) are factored in, (among many other things) you'll notice your margins don't go as far as you'd hoped. I don't know your unit cost and wouldn't ask you to reveal it here, just commenting.Lol so true!
However I made my choice while back that THA-1 will be value oriented. That way the brand Sonocus becomes more scalable, resilient, and ethical.
Sure I could sell it for $1k+ out of the gate, but it wont have the same value.
Because as of now THA-1 is basically a high end machine in a much more affordable packaging, which will help drive up the sale, reputation, and ultimately, satisfaction
Up to what level in which impedance will it remain in class A ?The amplifier remains single-ended Class A,
I admire your values. I am just surprised you can make any profit at this price point. Thinking about scaling, you will struggle to open up distribution if you don't build those required additional margins into your pricing strategy from the outset. Maybe you have? And if so, that's wonderful! $350 just seems too cheap for such a high-end product.Lol so true!
However I made my choice while back that THA-1 will be value oriented. That way the brand Sonocus becomes more scalable, resilient, and ethical.
Sure I could sell it for $1k+ out of the gate, but it wont have the same value.
Because as of now THA-1 is basically a high end machine in a much more affordable packaging, which will help drive up the sale, reputation, and ultimately, satisfaction
Thanks Matt.I
I admire your values. I am just surprised you can make any profit at this price point. Thinking about scaling, you will struggle to open up distribution if you don't build those required additional margins into your pricing strategy from the outset. Maybe you have? And if so, that's wonderful! $350 just seems too cheap for such a high-end product.
+1. Most retailers / distributors I've dealt with wanted 30-50% of MSRP for themselves. If you only have 50-70% margin for yourself, it gets tricky. It is surprisingly possible to ship an entire production run to stores and not have enough cash on hand to buy parts for the next one.Thinking about scaling, you will struggle to open up distribution if you don't build those required additional margins into your pricing strategy from the outset. Maybe you have? And if so, that's wonderful! $350 just seems too cheap for such a high-end product.
+1 on this. A 10x cost to MSRP multiplier isn’t uncommon.+1. Most retailers / distributors I've dealt with wanted 30-50% of MSRP for themselves. If you only have 50-70% margin for yourself, it gets tricky. It is surprisingly possible to ship an entire production run to stores and not have enough cash on hand to buy parts for the next one.
Yes, I think having walked this path myself, the challenge of starting with a strong value, lower margin (30-50%) DTC product isn't necessarily making profits in the early days. The difficulty is when you want to scale up to reach more customers and realize that retail/ distribution is almost required to do so. At which point you realize the higher margins are also basically required. This puts a lot of pressure on the price / quality level your customers have come to expect. It's pretty hard to reduce unit costs by 70-80% to make that happen unless you can invest in a very large mass production run... (Big cash requirements there)+1 on this. A 10x cost to MSRP multiplier isn’t uncommon.
Also what can happen is that a local distributor will ignore your MSRP and create their own margin structure and retail price for their market.
100% agreementYes, I think having walked this path myself, the challenge of starting with a strong value, lower margin (30-50%) DTC product isn't necessarily making profits in the early days. The difficulty is when you want to scale up to reach more customers and realize that retail/ distribution is almost required to do so. At which point you realize the higher margins are also basically required. This puts a lot of pressure on the price / quality level your customers have come to expect. It's pretty hard to reduce unit costs by 70-80% to make that happen unless you can invest in a very large mass production run... (Big cash requirements there)
And alternatively, a follow up product that is below the quality bar you've set with your customers is also problematic.
So I guess we're in agreement that OP should be careful to game out future 3-5 year scenarios wrt cost / margin beyond DTC, if any kind of distribution is on the table.
If OP really has comfortable margins under $500 then hats off and I'll be quiet about it.![]()
Glad to be helpful!Thank you for the much needed input guys. I am a better producer than a businessman for sure, haha. All this time ive only dealt in B2C.
After some consideration there is now to be a slight increase in the msrp.
One positive aspect about me having designed the THA-1 from ground up is that i know exactly what to do to update the design;
one will be inclusion of floating ground 'filter' for mainboard psu, to the total of 4 level filtering (capmx>prereg>reg>floating ground)
increase the copper pour to 2oz for lower impedance
inclusion of number of modules/updated modules in the base price
These are key elements that willl drastically improve the sq and user experience and prerequisite for justifying higher price.
They will have to be implemented through much testing and tuning though.
So for now $500 is an early bird special limited to 10 units, and $350 is still the preorder price for the next month. Thank you.
Well, as a former consumer audio marketing / product person, I would agree with this 10/90% thing.And so my challenge now is marketing, packaging, and logistics. Who would have thought the last 10% of the journey is as hard as the first 90%? Haha.
I guess my previous post was a bit of marketing.Glad to be helpful!
B2C / DTC can be sustainable, but the cost / effort involved in marketing ends up being much greater over time. Of course, you can't get away from marketing / ads entirely either way, (stores and distributors like it if people have heard of your brand) but finding more customers yourself without going through retailers or distributors involves proportionally more marketing. This will tend to eat up margin also. Even attending an audio show as an exhibitor is fairly costly, let alone advertising...
Remaining "boutique" and avoiding all of this is an option, but there is a reason those tiny brands also have very high prices, otherwise you can't make enough revenue to keep a roof over your head with just a few customers...
Pricing is one of the trickiest tasks in marketing / product development, there is a surprising amount of strategy that goes into one simple number...
Thank you so much for thisWell, as a former consumer audio marketing / product person, I would agree with this 10/90% thing.
I am about 6 years out from that role so my advice will not be totally up to date but the right marketing tactics will depend on your business goals, and in large part your cash situation.
Quick thoughts:
Get a sense of how many units you would like to sell, and how much you are ready to spend on marketing to reach that target.
For that goal, you will need to figure out where you can find enough suitable customers.
From there, you can figure out how those customers decide to purchase a product like yours. Your marketing activities should aim to make your product prominent in / around the channels that people use to make that decision. More specifically that will mostly be reviews, but where the reviews are and which reviewers conduct the reviews is important to think about. ASR? Facebook? Youtube? Independent magazines? Etc.
In addition to that, consider what supplementary tactics you will use - ads? Email newsletter from your website? (many people "think" for a year or more before making such a purchase - it pays to stay in their inbox during that year...)
Marketing is a wide and deep thing, but it starts with figuring out who is going to buy your thing, and figuring out where they ought to find out about it. ASR is a good start. What about other forums? etc.
Also, listing on marketplaces can be very effective, but sites like Amazon demand their own marketing tactics and are a lot of work unto themselves.
As far as packaging my advice is:
1. Prevent damage
2. Minimize cost
3. Look nice / good unboxing experience
In that order. High quality packaging has a high unit cost and IMO doesn't drive sales unless your customers watch unboxing videos a lot. If they do, think carefully about it.
Logistics: Ocean freight as often as you can do it. Fulfillment: You can DIY up to around 100 units per month if you have the space at home or whatever, but international shipping gets very time consuming. A third party warehouse can be cost effective given that they also often get discounts from carriers. Don't assume packing and shipping yourself is worth the effort.