Thanks for the heads up, I will look into that.
It just suprises me that say a Onkyo 808 could be had for like $700, but I can't find an equivalent pre/pro for say $500 (considering there is no amp section)...
In very general terms, look at it this way.
For each product and manufacturing-assembly line, there are four costs:
$D = Development costs (design, testing, etc.)
$MS = Manufacturing Setup costs (work instructions/training)
$CO = Changeover costs (switching work-flow & inventory streams to support production of the other product)
$U = Unit cost (cost of components and labor to assemble
each unit)
Let's assume a REC and a PRE are made using essentially identical preamp components. I'll throw out some
fictitious costs for this
fictitious scenario:
$D(REC) = $30,000
$D(PRE) = $15,000 (has the benefit of the design and testing results of the REC, but still needs to be proven for durability and any certifications and some redesign to distribute components throughout the chassis so it doesn't feel/look cheap).
$MS(REC) = $20,000
$MS(PRE) = $20,000 (the documents & process is essentially the same for both items)
$CO = $3,000 (the same work is required to change production line from REC to PRE as from PRE to REC)
$U(REC) = $175
$U(PRE) = $100
Our
fictitious market analysis predicts sales volume of 2,000 receivers per year and 400 preamps per year (and the product is replaced/updated annually).
Let's say they decide to changeover to run preamps once each month following a demand forecast).
So the cost to manufacture the 2,000 receivers is:
30,000+20,000+3,000(X12)+175(2000) = $436,000 or
$218 per REC (cost to manufacturer before profit, shipping/distribution, and retailer markup).
The cost to manufacture the 400 preamps is:
15,000+20,000+3,000(X12)+100(400) = $111,000 or
$277.5 per PRE (cost to manufacturer before profit, shipping/distribution, and retailer markup).
Again, this is fictitious (and grossly simplified), but it shows the basic benefit of mass production and why a company might not be too interested in selling a separate pre in the competitive <$500 market. They might, however, see fit to take this "$277.50" preamp and spend another $50-75 gussying it up for the upscale market and sell it at a premium price!
Unless you're ready to spend big bucks, just buy a good receiver!
Also consider that adding a 3 channel amp leaves a receiver free to handle the less demanding back/surround speakers with ample reserves to spare! You might consider adding a UPA-5 amp to drive the front 3 channels - also with power to spare.
