It could be that labor makes up the rest of the cost, but honestly, I think that's a stretch. The last audio manufacturer I worked for, their COGS was like... 60-70%, labor 10%, profit margin was very thin. Most profit was made from repairs and service/maintenance fees.
But even with profit margin so large, why are their sales so underwhelming? Just as an example... Drop probably sold more HD6XX as a whole in 2019 than the entirety of DCA's lineup. That's crazy.
Not really that surprising on the 6XX sales. It is a headphone staple that costs only $200. DCA really only has 2 products with the cheapest being $900, and the reception has been lukewarm, to say the least. I'm honestly a little surprised they are still afloat even if I like their stuff.
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