"The point is that IMHO any even cheapest and crapiest VCR is much more complicated device than a stupid microphone and can be have for under $100.
Yep, wonders of capitalist market."
(Question posted by Marik)
Sorry, I haven't figured out the quote thing.
There are actually several parts to your question that need to be addressed. First thing to realize though is that you are, to some extent, comparing apples and oranges. A better analogy might be to ask why one painting is worth $10.00 and the next, $10,000.00. They're both made with paint, aren't they?
1) the name factor is real. They better name can command more for its products. This is probably what you refer to and it's true with art as well.
2) economy of scale. I am willing to bet that for every Nuemann mic produced, ther are 10+ million. Therefore, manufacturing can be geared toward this kind of volume and still maintain a reasonable level of quality. Incidentally, the price drop of VCR's occurred for two reasons. The first are the Koreans and Chinese getting into the act. The second is the advancement of technology. Circuit City doesn't even sell VCR's any more unless they come as a combo with a DVD player.
3) consistancy of quality. You can pick up virtually any example of a particualr model of expensive mic and be assured that it will sound identical to any other example. This is their level of quality control. Just look at all the threads advising the potential buyer to try several of the same mic to find a "good" one.
4) there is a marketing principle called the marketing curve. This curve states a generallized price vs consumer acceptance (reading buying) trend for a given product of mass appeal. The problem with the Nuemanns of the world is that they a niche market, at best and will never fit this curve very well. It might be argued that the curve even works here due to the introduction of cheap imports but that simply isn't the case. Nuemann hasn't dropped their prices based on this competition and isn't likey to.
5) Another factor that takes mics out of the traditional marketing world is longevity. 30 year old good mics are still good mics. Some even increase in value based on a perceived level of quality or tone that doesn't exist today.
There are probably more arguements to your contention but I think I've made the point. My purpose is not to nuke you, by the way. I have seen this question in many contexts over the years, though and these marketing principles hold. BTW, I have my degree in business with a strong bend toward marketing (I'm sure you couldn't tell this from my post

).
Regards, Steve
PS If you have more questions regarding this, I'll be happy to answer them as best I can either here on feel free to email me directly.