Let’s have a look at pricing. We don’t price a unit based on how good it sounds within our own product line or compared with the competition. We are an engineering company plain and simple. We don’t price our amps based on weight or workmanship. We price our products based on cost. Over time costs come down due to innovations and performance advances. For example, you may know that preamp switch resistors are quite expensive. We have learned how to implement them at a much lower cost by using FPGA, a big logic chip. Designs that were once exclusive to super-expensive preamps now occupy of our modestly priced amps and DACs. We’ve advanced from a bank of expensive resistors to a fruitful chip. In terms of cost difference the journey from one to the other amounts to an order of magnitude. Similarly, our amplifiers employ a naturally occurring self-oscillating design principle to generate the PWM pulses for Class D sampling rather than incorporating a relatively expensive PWM generator. In short, instead of marketing a crazy-expensive amp, we’re in a position to sell an STA-9 at $649.
Typically a brand works with an OEM factory, including supplier factories, to achieve its target products. It isn’t often that a brand owns its own factory. Atypically, NuPrime is vertically integrated: we don’t subcontract for amplifiers and power supplies. Our in-house engineering team makes it unnecessary to spend elsewhere for what we do so well. Our stocked parts range from raw materials and ICs to semi-assembled boards. Hybrid Class-D switching and linear power supplies, DACs, preamps, and anything else we require are conceived and achieved in-house. Admittedly, we can’t do it all. On occasion we partner to develop a product another company does better. In short, NuPrime customers benefit from our R&D, efficiency and fruitful associations.
Some of our customers want to know where our products are made and who benefits from their purchase. NuPrime electronics are made in Taiwan with parts sources from suppliers worldwide, with roughly 30% percent from the US companies. 60% of gross profits pay US dealers, support and sales staffs. 10% of gross profits go to Taiwanese factory workers and expenses. The remaining 30% go to engineering, marketing and management staff.