Formerly being in the motor trade, I can suggest reasons for this:
VAT as mentioned - 20% in the UK - without getting in a debate over the merits of fiscal policy, the government always made far more money out of new vehicle sales than anyone else did.
Difference between trade and retail - a dealer would certainly ‘stand’ a used Star into stock at less than they pay for a brand new unit from Naim.
Taking something in PX always involves risk - the newer the item (still covered by warranty) the lower the risk but used equipment is not new, hence ex-demo items are usually cheaper than a brand new item.
Regarding the Star, I would expect that longer term, it will be the technical obsolescence of the streaming platform that has the biggest impact on its value, assuming Naim can continue to support the unit from a service perspective.
Yes definitely, and especially as many products are the price of a car. I would say that the majority of Naim equipment has stronger residual values than most cars in percentage terms. Not having to MOT, tax and insure it + having to deal with corrosion etc. probably helps there too😉
Stronger values also ensure that it is worthwhile servicing and maintaining the equipment knowing that it has high residual value at the end.
Given the majority of forum members / contributors appear to benefit from the market based economy of the western capitalist based systems, it’s quite amusing some have the nerve to carp about the self-same forces that Naim use to set their prices. When I was studying economics at Uni. it was called Supply & Demand!
Without said ‘western capitalist system‘, Naim either wouldn’t exist at all or would just be making transistor radios, permanently tuned into State Radio LW😀 Having said that, they would be playing classical music performed by highly skilled state-funded musicians…
It wasn’t meant to seem defensive - indeed, the intention was to merely be mildly amusing. Believe me, as someone who studied PPE at uni, worked in the motor trade and laments the ‘exporting’ of manufacturing jobs overseas, I am well aware of the faults of the capitalist system - it’s just that the alternatives discovered so far are worse😳
Imho, Naim’s target customer isn’t one looking for the biggest bang for the buck. Rather, one who appreciate quality and would fork out good money for it, even with diminishing return on the economic scale. There is a significant wage difference between countries; and I assume like any business, Naim and its parent companies have initiative to improve revenue. It is not a NPO. That said, it appears consumers are backing the brand and its products. It hasn’t priced its products out of its intended market.
It’s a pointless analogy. An XPS DR is £4,200, quite a bit more than a packet of Oatibix - it’s not simply a question of “preferring” Oatibix, or “preferring” the sound with a power supply. £4,200 is nothing for some, it’s a lot of money for others.
I would still love to know what it is that makes the XPS DR so expensive.
Purchase price isn’t really relevant, cost of ownership is the important factor. Of coarse if you’re strapped for cash and have to go into debt, that’s different matter.
Cost of ownership per year of new equipment, equals the purchase price, minus its resale value in 5 years time, divided by 5.
Cost of ownership of equipment you already own should also be taken into account.
Cost of ownership per year of existing equipment, equals the current resale value, minus its resale value in 5 years time, divided by 5.
Yearly cost of owning Naim equipment probably isn’t that high, compared to the cost of holidays, cars, beer and cigs.
Yes some things are very expensive especially external power supplies. However there are always dealer ex demo deals and second hand stuff on well known auction sites. Many of my purchases have been through this route. The only new item I purchased was a Uniti Mk1 when it came out in 2009.
The dealers also have to make a profit which doubles the selling price in UK
