So you want to buy JBL speakers but wonder why they’re so expensive?
I own a hi-fi audio store and many customers ask for JBL speakers since it’s a popular brand. However, you must see their shocked face once I mention the price.
To settle the curious case of why JBL speakers are so expensive, I’ve compiled an exhaustive list of reasons that affect JBL speakers’ pricing.
But here’s a short answer if you’re in a hurry.
Why Are JBL Speakers So Expensive?
JBL speakers are expensive due to their high-quality components, durable build, and brand reputation. The American audio brand offers top-notch sound quality, modern technology, and reliable performance that increases their speakers’ prices.
While these are compelling reasons, they aren’t the only ones that increase the price of JBL speakers.
Let’s dive deep into a few reasons why JBL speakers are expensive.
11 Reasons why JBL speakers are Expensive
1. High quality components
JBL is a premium audio brand and uses high-quality components to manufacture its speakers.
Several of these components are manufactured in-house by JBL. Other components that the brand exports are also of higher quality than its competitors.
A JBL speaker price increases since it uses high-quality components for:
- Magnets
- Coils
- Bass radiators
- Electronic circuits
- Bluetooth module
- Wires
- Speaker housing
- LEDs
- Batteries
- Glue
- Screws
- Buttons
Moreover, a few JBL speakers are water and dust-resistant, thereby increasing the speakers’ price.
2. Manufacturing & Assembly Line
Procuring high-quality components is one part of the game; the other is manufacturing these speakers on an assembly line.
Most consumers complain that JBL doesn’t launch new products frequently.
However, adding a new product or changing an existing product requires a huge investment and modification in the manufacturing process and assembly line.
The engineers must create numerous SOPs for manufacturing new products and teach them to the assembly line workers.
JBL speakers are manufactured in multiple factories located in the USA, China, India, and Mexico.
To keep the manufacturing process efficient, OEM manufacturers hire hundreds and thousands of workers who perform only one specific task at a time.
Check this video to see how a JBL speaker is manufactured and assembled.
3. Research & Development
Like most premium audio brands, JBL has a dedicated Research & Development (R&D) department.
The job of the R&D department is to design and build new JBL speakers and other audio products. It involves hundreds and thousands of experiments and numerous permutations & combinations.
The R&D department is also responsible for incorporating newer technologies into their current line of wired and wireless speakers.
For example, a simple switch from Bluetooth 5.3 to Bluetooth 5.4 requires innumerable tests of its speakers and foolproofing the overall experience.
4. Marketing & Advertising
A crucial part that makes JBL a premium brand is its considerable spending on marketing & advertising.
According to MediaRadar, JBL spends approximately $100 Million annually on advertising alone.
When I worked at Audio46, a few of the counters had posters of new JBL speakers, which made incoming customers more aware of their products.
The expense of advertising & marketing is added to the audio products’ cost. Thus, it’s a major factor why JBL speakers are expensive.
5. Legacy & Brand Trust
JBL is a 75-year old brand, which gives it a massive advantage over its competitors.
Compared to younger audio brands, consumers have more trust on JBL due to its legacy of several decades.
JBL knows this; hence, its speakers are slightly expensive than its competitors. Also, from my experience, consumers are ready to pay a higher price for a premium and known brand.
6. Shipping & Transportation
As mentioned above, JBL speakers are manufactured in several countries. Thus, shipping them from countries like China, India, and Mexico to a worldwide market considerably increases the speakers’ final price.
Shipping containers full of JBL speakers from China to the USA can cost around $1200 to $2300+ per container (Source).
Many countries or territories don’t have a seaport. Thus, the company has to ship the speaker boxes via air, which costs $3 to $15+ per kg.
As a result, the shipping cost largely affects the speakers’ price.
7. High Quality Packaging
When I worked at a hi-fi audio store in New York, the manager would always return speakers & audio products even if boxes were slightly damaged or torn.
Once I asked him why he does it, he answered: “Whenever a customer buys a premium product, packaging is the first thing they interact with before getting to the product.”
Similarly, imagine you buy a $500 JBL speaker, and it’s delivered to you in a tattered box. How would you feel about it?
The unboxing experience is a crucial reason that makes JBL speakers stand out from cheap or budget speakers.
Another reason why high-quality packaging is important is that it prevents the speakers from any damage during their transit from China to the USA or other countries.
The high-quality packaging ensures the speakers & accessories are safe inside, and the box must be sturdy when delivered to the consumer.
8. Brand Ambassadors & Influencer Collaborations
For JBL to stay relevant and connect with the masses, it must appoint brand ambassadors and collaborate with influencers.
Currently, JBL has numerous celebrities like Martin Garrix, Kid Laroi, Madison Beer, and Virgil Van Dijk as its brand ambassadors.
For my younger audience, a brand ambassador is a person (especially a celebrity) who is paid to endorse a brand’s products and services, which increases the brand’s national/global awareness and sales.
Thus, JBL pays millions of dollars to these celebrities to appoint them as their brand ambassadors. These celebrities appear in JBL’s digital and print ads and must publicly use JBL’s products as per the contract.
Hence, the more brand ambassadors that JBL signs, the prices of JBL speakers increase too.
9. Pricing Anchoring (or Perceived Value Pricing)
Would you buy a brand new JBL speaker for $10? Mostly not because you’d think it’s a fake, right?
I would do the same since the cheapest JBL Bluetooth speaker starts around $40-50.
The JBL Flip 5, a 20W Bluetooth speaker, is priced at $90, whereas Soundcore offers a similar 20W model for $40.
Even though a JBL Bluetooth speaker costs only a few dollars to manufacture, ship, and pack, it sells the product at a higher price to retain its perceived value.
To establish itself as a premium audio brand, JBL prices its speakers between budget brands like Soundcore or Tribit and luxury brands like Bose & Sonos. This pricing strategy is popularly termed as price anchoring.
It’s similar to how, a few years back, it was revealed that the $200 Beats Solo HD headphones only cost $18 to make.
10. Quality Control & Rejected Pieces
From what I’ve experienced over the years of selling JBL speakers and other audio equipment, I can say that JBL has a high standard of quality control.
Quality control happens at various stages like manufacturing, shipping, retail, delivery, etc.
Thus, JBL will reject an entire speaker unit over a minor defect or issue.
I remember working at Audio46, where a batch of JBL speakers had a faulty volume knob. Once JBL realized the mistake, it replaced the faulty speakers with new ones.\
11. Brand Acquisitions
In 1969, JBL was acquired by Harman International. Later, Samsung acquired Harman International in 2017 for a whopping $8.0 Billion.
Thus, to recoup the high acquisition cost as soon as possible, JBL speakers and its audio products are priced higher.
Conclusion
Apart from the reasons mentioned above, here are a few reasons that directly or indirectly affect JBL speaker pricing:
- Customer acquisition
- Pre and post-sale support
- Developing apps
- Trade fairs
- Acquiring top-level executives,
- Setting up offices & manufacturing plants
I hope this article helped you deeply dive into the reasons why JBL speakers are expensive. These reasons can apply to other premium audio brands like Sony, Bose, Sonos, Bowers & Wilkins, and more.
Are there any reasons that I missed? Please let me know in the comments section below. I might include them in the article, too.