Why Are AV Receivers So Expensive? (10 Reasons)

 

An AV receiver, or AVR, is the hub of your entertainment system.

It’s where all the various inputs and cables connect to give you TV and audio.

Because it’s such a powerhouse in your entertainment system, AV receivers don’t come cheap.

 

Why Are AV Receivers So Expensive? (10 Reasons)

 

The average price of an AV receiver is around $2,000 with cheaper models costing around $100 and more expensive models costing around $7,000 or more.

AV receivers are expensive because of the costs of their parts, the number of ports it has, the brand name, the cost of their different features, and their focus on design.

Let’s look at these factors and others in more detail.

 

1. Amplifier Costs

 

There’s no question that one of the most important parts of an AV receiver is its amplifier.

An AV receiver’s job is to take all the information each device is feeding to it and output that to the user.

For example, when a user wants to switch between different devices, the AV receiver is the one responsible for letting the user connect to that device.

It’s also responsible for producing better sound.

It essentially amplifies a speaker’s audio.

It’s able to enhance a speaker’s audio because of its built-in amplifier.

Amplifiers aren’t the cheapest part to make.

It often contains expensive parts since some of them contain gold.

Labor costs are another factor.

While many companies will use robots or machines to make amplifiers, there’s always a human laborer or two overseeing the process.

Some might even make amplifiers by hand.

Either way, there are some labor costs involved in making amplifiers.

Because amplifiers are expensive to make, the AV receiver is expensive.

The manufacturer has to offset the cost of making the amplifier, and it does so by putting a higher price on the AV receiver.

AV receivers are expensive because many of them contain amplifiers which are expensive to produce.

 

2. Target Audience

 

A large part of why an AV receiver is expensive is that its target audience is typically people who have a lot of money to spend on video and audio equipment.

The type of individual who buys an AV receiver is the type of person who has a lot of devices.

Those devices might be TVs, computers, sound systems, DVR players, Blu-ray players, Roku, and many other devices.

They’re generally people who spend a lot of money on electronics.

Since they’ve already spent a lot of money on their electronics, AV receiver companies know that they won’t stop at an expensive AV receiver.

The company is counting on its target audience to know that an AV receiver can make using their different devices a lot easier.

It can also enhance certain devices.

A high-quality speaker, for example, can sound even better when hooked up to a high-quality AV receiver.

Someone who spends over $2,000 on their speakers is going to want an AV receiver that enhances those speakers.

The type of receiver that can do that is also expensive.

It’s priced to match the quality of the other devices.

AV receivers are expensive because a company’s target audience is people with extra money that goes towards expensive electronics.

 

3. Number Of Ports

 

The number of ports that the AV receiver has also influence its price.

For one, the more ports it has, the more engineering it goes through.

Each port requires a specific number of parts and electronics to make it work.

The more ports the receiver has, the more parts and electronics the manufacturer needs to build.

That means higher material costs and more time spent on the assembly line.

Since manufacturing costs are higher, the price of the product is also higher.

There’s also more value in an AV receiver that has numerous ports.

People with a ton of devices are typically going to find an AC receiver with multiple ports more valuable to them.

It means they don’t have to spend a lot of money on buying more than one receiver.

A receiver with a lot of ports can serve all their needs.

Since it helps them solve a problem, they tend to be willing to pay more for a receiver that provides that solution.

That perception of value also reinforces its high price.

AV receivers are expensive because numerous ports increase both the value of the receiver and its manufacturing costs.

 

4. 4K Video Support

 

Some AV receivers are also capable of providing 4K video support.

4K is the current evolution of picture quality.

While the next stage is likely under development, a lot of AV receivers focus on providing 4K resolution.

4K TVs have also started to come down in price.

That makes them more affordable for a larger group of people.

With the growing popularity of 4K TVs, AV receivers that can support 4K TVs are also high in demand.

This makes 4K AV receivers expensive for a few reasons.

The first is the cost of manufacturing.

In order for an AV receiver to be able to support 4K streaming, it needs the latest materials.

It’s pushing towards the highest grade of materials and engineering used in the market.

Because manufacturing costs are high, the price of the receiver is going to be high.

Secondly, there’s more value in a 4K receiver.

Since 4K TVs are going to be all the rage for some time, people are going to want a receiver that can support that resolution.

It will be a while before the next stage of resolution hits prices that most people can afford.

As such, they’ll get a lot of use out of their 4K receiver by buying one now.

That’s opposed to buying a 1080 receiver.

The 1080 receiver is on the outs.

By getting more use out of a 4K receiver, the consumer sees it as a more valuable purchase.

That also sets a higher price tag on the receiver.

AV receivers are expensive because 4K receivers are hot in the market right now.

 

5. Brand Name

 

The brand name of the AV receiver can also influence its price.

Brand names make products more expensive because they’ve spent a lot of time building their reputations.

A well-known brand name has likely been around for some time.

During that time, it focused on producing high-quality products.

It also likely spent a good amount of money on marketing its products.

It sold the idea that it was the company that could solve a person’s problems.

When its products delivered on that promise, it formed a reputation for being a reliable company.

When it comes to AV receivers, consumers don’t want to spend money on a scam.

They want to know that they’re receiving a worthy product for the money that they spend.

As such, they tend to be willing to pay more for a product that comes from a well-known brand.

The brand’s reputation makes it seem like a less risky investment.

Even if the consumer has to pay more for the product, it just feels safer to them.

Certain brands of high-end AV receivers include the following:

• Arcam
• Marantz
• Denon
• Yamaha
• Anthem

If you buy an AV receiver from one of these brands, then there’s a good chance it’s going to be expensive.

AV receivers are expensive because a brand name offers security and reliability which increases the receiver’s value.

 

6. Bluetooth Connectivity

 

Some AV receivers can also connect to certain Bluetooth devices.

These receivers tend to be on the expensive side because they can connect to Bluetooth devices.

Being able to connect to Bluetooth devices can make it easier for you to stream your phone’s playlists directly to the receiver.

You can play a YouTube video on your phone, then connect to your receiver and have it play on the TV instead.

Bluetooth connectivity is expensive, however.

The manufacturer has to use more parts and engineering to make its receiver capable of connecting to Bluetooth devices.

Since it’s more expensive to make, it’s also more expensive to buy.

Bluetooth-enabled receivers also have more perceived value.

Consumers who find connecting to Bluetooth devices to be convenient may be willing to pay more for a receiver that allows them to do just that.

That also makes the price more expensive.

AV receivers are expensive because connecting to Bluetooth can make them more expensive to manufacture.

 

7. WIFI Connectivity

 

While some AV receivers can connect to Bluetooth, others can connect to the WIFI.

This also increases its price.

Being able to connect to WIFI can make it more convenient to use for some people.

They no longer have to rely on Ethernet cables.

That might mean they can finally put their AV receivers exactly where they want them.

Being able to connect to the WIFI isn’t always cheap.

It usually requires more parts and engineering.

Since the cost of producing a WIFI-enabled AV receiver is a bit higher, the manufacturer is also going to sell the receiver at a higher price.

As with Bluetooth receivers, a WIFI-enabled AV receiver has more value.

Consumers may be more willing to pay for an AV receiver that connects to WIFI since it makes using it more convenient.

They can connect automatically to certain sites or upgrade software directly.

AV receivers are expensive because WIFI-enabled receivers are more expensive to make and have a higher perceived value.

 

8. Multi-Use AV Receivers

 

Some AV receivers have multiple uses.

For example, some simply act as inputs and output exchanges.

They take in data, then output data where it needs to go.

Other AV receivers can also act as streaming devices.

They’re able to stream audio to different devices in different rooms.

These types of AV receivers are more expensive since they’re more complex.

They require more costs and time on the assembly line.

Since they’re more expensive to make and have greater value, they sell at higher prices.

AV receivers are expensive when they have multiple uses.

 

9. Design

 

The design of an AV receiver can also influence its price.

More expensive models typically have better designs.

They may not appear as blocky or clunky as other receivers.

The company spends some time going over its design and appearance.

The company might want its receiver to have a certain look.

Since some people want receivers to go with the rest of their equipment, they might be looking for a particular look as well.

Yet the design can’t sacrifice the function of the receiver.

As such, companies typically have to spend a bit more money to make the receiver look great and still work great.

The company might also use expensive materials like real wood or leather to make the design of the receiver look even better.

AV receivers are expensive when companies invest heavily in their designs.

 

10. Research And Development Costs

 

A final reason AV receivers are expensive is the cost of research and development.

Since the audio equipment market is quite competitive, companies have to keep coming up with new features or services.

The company needs to prove that its receiver is better than the competitor’s receiver.

To accomplish that, the company’s research and development team has to brainstorm new ideas and test them.

The more funding that the team has, the faster they’re able to try out new ideas.

That means faster results which translate to new features and new products.

However, the company has to receive its funds from somewhere.

That usually means higher prices on its products.

AV receivers are expensive because of the costs of funding a competitive research and development team.