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street price doesn't determine MSRP. There are plenty of $200 MSRP headphones that perform and sound worse.
The K7XX can be sold for a PROFIT at this price point as AKG repurposed parts they already had. No new R&D costs or manufacturing molds, tools, etc. The difference is color and slapping on 'K7XX'. They changed what they print on their packaging. Massdrop allows AKG to skip retailers and they don't have to advertise or market this product. All of these factors together allow for a cheaper to produce and sell product.
If they had to make it from the ground up and sell it to retailers, market it, etc. I'm sure they would indeed sell the K7XX at the $649.99 MSRP.
I guess it's the Chinese market sales price
I've been looking at the selling patterns of K7XX's for a while. I don't want to scare anyone away, but it doesn't really look like it's easy to make a profit off of these. Sale price is usually about $150-$199.99 depending on the condition. I have seen a few sell for over $200, but I should also note that I was following the seller, and that was usually after MANY attempts of selling the item above the Massdrop price (starting at $299, then $250 when that fails, then $220, etc.). Highest I've ever seen them sell for in the last three or so months was $230 something dollars.
Buying in quantity for the sole purpose of reselling for profit is against the Massdrop TOS. "Use of Membership: You shall not use your Massdrop membership for any purpose competitive to Massdrop." AKG and Massdrop are doing a good thing here by making this level of sound quality available at a very competitive price point. I think people should pause and think before doing anything which might cause them to question or reconsider the continuation of the K7XX in its current status.
Right on Octiceps!! Sadly there are a number of folks out there that buy things like this only to turn around and try to sell for profit. They aren't really interested in using them or anything. That's pretty disgusting in my book because of the negative effect it could have as you stated thus others who might want a pair for themselves would miss out because of the greed and disdain of others. It's the same way in the vinyl record world, plenty of jerks who don't care about records or even have a turntable just buy them up to sell at profit which makes things a little harder for those of us who buy for the sole purpose to have in our library and listen to them. Maybe being a music lover makes me biased with this stuff, maybe not.
I look forward to trying the K7xx. I think I'll dig them once I get used to them. (It will be a different sound signature than my Sennheisers, but I believe I will be getting what I am missing from the Senns while maintaining everything else intact and saving $200 in the process. Doesn't get much better than that.
Of course, however, I just wanted to point out to the person to whom I was responding that I highly doubted they could make a profit off of reselling.