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What is value?

December 11th, 2007

Of course it is subjective. All depends on how much you make right? Not necessarily. Value is almost always a comparison of features and performance compared to other products features and performance at the same price point. Sometimes, there is a comparison to an absolute bar but these comparisons are usually meaningless. Ok… maybe I should elaborate…

Let’s say Joe knows nothing about a topic but he wants to make a purchase. For sake of argument let’s use home theater as that topic. Joe goes into a store looking for a big TV, a surround sound system, and a high def player (he’s seen the commercials after all). Joe has about $1000 to spend (poor Joe, he’s in for a big surprise!). It doesn’t take Joe long to figure out that $1000 isn’t going to get him all the much – especially if he wants that 1080p thingie that he’s been hearing so much about. Joe decides that he can stretch his budget a bit and doubles it to $2000. Now, let’s see what Joe buys and why:

  • $1000 – 42″ (or larger) 1080p HDTV – Open box special, too good a deal to pass up.
  • $400 – Blu-ray player – wants to take full advantage of that 1080p set plus he’s heard that it is the best. Not to mention that Sony is a great brand and it is twice the price of the HD DVD players so it must be better, right?
  • $300 – HTiB speakers – Joe wanted to get the “best” cube system but it would have taken up his whole budget! Instead he opts for something that looks very similar but costs less than a sixth the price.
  • $100 – One (possibly two if he’s lucky) HDMI cable(s)

Now let’s analyze his purchases. The 1080p set (almost regardless of brand or performance) is an excellent value. Would he have been better off with a better performing 720p set? Probably – and he could have ended up with a larger one. But it’s still a good value as 1080p sets don’t often come down that low. The Blu-ray purchase was OK though it was based on advertising (which is almost never a good idea). Sony’s name recognition still carries a lot of weight with the uninitiated and more of us than are willing to admit think that if something costs more it must be better. The HTiB purchase is a complete waste but he’ll be so ecstatic that there is sound coming from behind him that he won’t notice. Joe’s most bitter pill to swallow was the HDMI cable. He can’t understand how they can cost so much but apparently they do.

Joe was trying to make value purchases, and in one case (the display) he did. But the others were based on faulty value metrics. The Blu-ray purchase was based mostly on an expectation of quality from advertising and name recognition. The HTiB purchase was based more on pure budget. Most people can’t understand why speakers and a receiver can cost as much if not more than their display. It would be like going to the store and finding out that onions cost more per pound than filet mignon. It just wouldn’t register. You couldn’t believe it. The upside is that he’s probably getting nearly the same performance out of the HTiB speakers as he would the overpriced and over-hyped ones he was planning on buying (in defense of of that company, they have a pleasant sound to the uninitiated ear – they just aren’t very accurate.) Joe’s metric for value with the speakers is based on how much he thinks speakers should cost. Speakers should be less than a display – considerably less. This is what I mean when I say that comparisons to an absolute bar are usually meaningless. Joe’s expecting to get a lot for a little and doesn’t realize what to expect at a particular price point.

The cables, on the other hand, are a completely different metric. Ever wonder why a particular company sells so many different types of HDMI (and other) cables when they really all do the same thing? Especially when they put completely bogus “speed” ratings and such on there? Because they are defining the comparisons for you. You can’t believe that the cables cost so much so you immediately look or comparisons. If they just sold the one cable, you’d look to the other brand (or brands if you’re lucky) to see the difference. Say there are three brands, each selling one cable. On average (my opinion) people will go for the middle priced one. They don’t want to buy the cheapest because they’re afraid of the lack of performance, but the priciest one is just ridiculous so they go for the middle. By offering a number of different “lines” of cables, they make sure they stack the deck in their favor. People look for that middle ground and by having 5 cables by one manufacturer with only one or two competing cables, people are more likely to but that brand. Evil, yes, but effective.

Is this an education issue? Sure. But like so many hobbies, there are products that are expensive just for the sake of being expensive. Now, if your speakers are hand-made by blind Buddhist monks out of pure rip-off-ium, then maybe you can justify charging $1,000,000 for them. But they aren’t and don’t pretend they are. Fortunately, there are places like Audioholics and AVRant that will point people in the right direction but how do we compete against the marketing juggernauts that seem to dominate the public consciousness. How many times have people said to me after I tell them what I do, “So, you must have all the best Bose speakers, right?” Um… thats an oxymoron. In more ways than one.

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  1. skris88
    December 11th, 2007 at 18:00 | #1

    Part of the blame I’d put on audiophiles who claim a sound system for movies is inferior to a sound system for audio only. All home theater systems play simple audio CDs too, and the s*** will hit the fan when they try – it will be shrill, boomy and “turn-it-down-honey” very quickly.

    Re video resolutions, I watch free to air SD TV here in Sydney and on a 42″ display at the recommended viewing distance, HD doesn’t APPEAR to be any better – not at first glance anyway.

    I’d rather put up with SD TV (and standard SD DVDs) with great sound then HD TV with crappy sound.

    It’s so funny to walk into a home with a 1080p display and the viewers going ooh and ahh over the 200 line quality movie illegally downloaded off the Internet!

  2. skris88
    December 11th, 2007 at 18:05 | #2

    Oh, one simple formula. 1/3rd for the display, 1/3rd for the speakers and sub-woofer and 1/3rd for the electronics and cables. Isn’t that a simple rule to use as a guide?

  3. ky22
    December 12th, 2007 at 00:57 | #3

    Okay n00bs (I’m new to this stuff too, call me n00b if you like. So here’s my $0.02). It depends on how close you sit to determine if you ever need 1080P. It doesn’t mean more pixel is always better. If you sit far enough you can’t see the difference between 1080i/p vs 720p or even 480i. 42″ 1080P is about like 6 feet distance to take the full resolution.
    My recommendation towards a $400 BD player is simply the PS3 (forget about that crappy bdp-s300, that takes like 3 minutes to bootup and only does DD+ and MPCM). I got mines for $330cdn after tax since I have a friend that works there and it was originally on special anyways. It plays movies, music and even games and by far it’s a pretty cheap BD player. I also know that some people are finding the bd-p1400 from Samsung very cheap; plus the HD-A2 HD DVD player goes for 99 bucks @ times in Walmart.
    People should seriously take a look at low end receivers and speakers. It would be more expensive, more upgradable, more connectivity option and just plains sounds better. Spend the money from HDMI cables to get better speakers or receiver and shop online for cables. (Monoprice, Bluejeans are some good place to start.) Good hunting.

  4. December 12th, 2007 at 09:51 | #4

    I agree that distance is the key for desired resolution. While 1080p is fast becoming the norm it is lost on many people who sit very far away from their televisions. 42-inches viewed from 16 feet away means that you’ll have trouble distinguishing the benefits of a 1080p picture…

    People naturally put the most money into their display. It’s the most noticeable item in the room. This week I had several guests over for a party and they were captivated by the 100-inch projection screen… The audio wasn’t even up and it didn’t matter. People wanted to ask questions about the projector.

  5. December 13th, 2007 at 02:02 | #5

    Did Joe really made a bad purchase?

    What other 300$ option is there for the audio section?

    We have to be careful with our well intending recommendations. Talking AV with my buddies, they usually don’t quite understand why got a 110lb end table that goes boom… Or how I managed to spend upward of 6,000$ on the whole HT but “only” have a 42” 720p display… Of course, when they get to experience my humble (to me) setup, they agree it’s a nice, balanced one. But it won’t make them spend as much money on their own HT.

    My point is, Joe had already doubled his budget and couldn’t/wouldn’t pay more. He ended up with a functioning HD HT he’ll be happy with. Later upgrading to an “audioholic level” receiver and speaker later won’t be too much of a problem since he’d be replacing a 300$ HTiB. Who much will I loose when I trade my 50W/channel NAD receiver? Probably more than that…

    Oh, and most dedicated audio/video stores aren’t helping much either. Intimidating and often condescending group of people… Not always looking out for the customer’s best interests!

  6. December 13th, 2007 at 09:58 | #6

    He did make a bad purchase from the standpoint of value. For slightly more money and different expectations (not looking for cube speakers exclusively) he could have gotten double or triple the performance. I agree that he could have done much, MUCH worse though. Better to spend a little money on a bad purchase than a lot just because of marketing. As I said, he’ll just be excited to hear noises come from behind him anyways so he’ll be happy.

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