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The Law of Diminishing Returns

by Stuart Charles Black

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Hey there friend, and Welcome aboard!!

Before we get into the law of diminishing returns, grab a snack, sit back and relax because..

You’ve come to the right place!!

Video Discussion

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What I will bring you in this article

  1. The Law of Diminishing Returns
  2. How does it apply to headphones?
  3. Entry Level
  4. Mid-Tier
  5. Top Tier
  6. Upper Echelon
  7. Final Word

Now without further ado, let’s get rolling!!

You may or may not have heard of the law of diminishing returns.

In the context of this website, I’m referring mostly to audiophile headphones.

Regardless, the concept is still the same, so don’t fret!

What exactly is the law of diminishing returns?

The law of diminishing returns basically states that the more money you spend on a given product, the smaller the incremental increase in the quality you receive.

This may not be an official definition, and though there are many like it, this one is mine. 😛

How does this apply to headphones specifically?

Well, I’m really glad you asked, friend!

I will attempt to break it down according to the price bracket.

  1. Entry Level ($0-100)
  2. Mid-Tier ($100-300)
  3. Top Tier ($300-600)
  4. Upper Echelon ($600 and beyond)

These four levels are how I generally categorize headphones. While there are some in the Upper Echelon that may be worth the money, for the most part, I simply would never pay the price.

I’ve had experience with many of these headphones, and though they sound very good, the price is rarely warranted.

Let’s start out with the Entry Level category and work our way up from there.

Entry Level ($0-100)

99% of the time, this is going to be your bread and butter of sound. A headphone like the Sony MDR V6 will get you the majority of the way to a high-level type of can. Will it provide 100% of the detail? No. But there’s a reason this thing has been around for decades. It’s the quintessential studio headphone and represents a price range that not only makes sense but far exceeds expectations for how much it is. Learn more: Sony MDR V6 Review!

Another headphone that is similar in this regard is the Philips SHP9500. It also tends to compete with headphones out of its price range and provides the same amount of detail as an HD600. Learn more: Philips SHP9500 Review!

Also for an in-depth comparison on the two: Sennheiser HD600 vs. Philips SHP9500!

So in essence, the law of diminishing returns is a non-factor at this range, but it helps to clarify and prime you for the point I will be making in a bit.

Mid-Tier ($100-300)

To be honest, there’s little a headphone in this range can do better than a headphone in the previous budget category.

The detail will be slightly better, and you start to get into things like better Soundstage, better instrument Timbre, better build, and more comfort.

This is a great price range if you wanted to upgrade without burning a hole in your pocket, and still, the law of diminishing returns has not set in just yet.

Top-Tier ($300-600)

This is what I consider the “audiophile sweet spot”, and in this price range, you’re just about all the way to a sound that covers all bases.

At this point, you could pay more and get a better sound, but a slew of other factors come into play like purchasing the right amp, using the best source files, etc., etc.

The headphone that represents the Gold Standard of audiophile sound in this category or otherwise is most certainly the Sennheiser HD600. Learn more: Sennheiser HD600 Review!

It’s a headphone that works well in the majority of situations and has a balanced enough sound to render songs with startling accuracy and detail. It’s the type of sound that renders music in the way that it was supposed to be heard and felt.

An investment such as this one should last you the rest of your life given proper care, and especially because all of the parts on it are replaceable.

But here’s where things get tricky.

Upper Echelon

I’ve heard plenty of headphones in this price range and a few things come to mind:

  1. They will reveal more detail than a headphone in the previous bracket.
  2. They will be built better.
  3. The sound will be more balanced, with a generally darker treble, an extremely flat and revealing mid-range, and a bass that is neither too rolled off nor too heavy. This is where a more expensive headphone has an advantage over the little guy. A lot of cheaper cans tend to have wonky sound signatures and overemphasized areas like the treble, bass, and even the mid-range in some cases. One of the reasons I always recommend the V6 as a closed-back solution and a 9500 as an open back solution is because both manage to avoid these pitfalls that other headphones fall victim to. Closed back vs. Open back headphones. Both have fairly balanced sound signatures (all things considered) and portray music in a way that’s both exciting, straightforward, and honest at the same time. Here’s a good graph of the V6 to illustrate my point. That graph is a very accurate portrayal of what my ears hear, though I don’t think the bass is quite as rolled off as Tyll does.
  4. Comfort is hit and miss. Some headphones like the Audeze line tend to be a bit too heavy for my liking, but others like the Audioquest NightOwl are some of the most comfortable I’ve ever worn. Learn more: Audioquest NightOwl Review!
  5. Some of them need better Amps, although a good Schiit Stack can power various models with relative ease. Learn more: Schiit Magni 2 Review!

Now here’s the real question: Do these improvements make these headphones worth that much more?

In my mind no.

There is one exception though: The Focal Utopia. This is a headphone that reveals absolutely 100% of everything that could ever be in a song. It does so in staggeringly beautiful fashion, leaving no stone UN-turned and presenting music in a truly blissful but yet still honest way.

So how much are they? $4000. Yep. You read that right.

Would I pay that much for them? Probably not. If I could get them for around $2000 I might consider it, knowing full well that it would be my last serious headphone purchase. While they are the best headphones I’ve ever heard, in reality, they aren’t worth $3700 more than an HD600.

A lot of folks will debate me on that, especially some of the guys over at Audio Advice. But I stand by it. I’ve heard most of the LCD line from Audeze, The Utopia, the MDR Z1R from Sony, and many others.

Check out my Reviews page to see what I’ve heard!!

I just think that after $600, you’re paying way more money for a much smaller improvement in sound quality.

Final Word

I hope I’ve shed some light on this matter, and you have a better understanding of how this law functions in the context of audio equipment.

As mentioned before, the Utopia is almost worth the asking price, and at a discounted rate (not retail) it’s your end game headphone for sure. Interested in learning all about it?


Well, that’s about it for today my friend! I hope you’ve enjoyed this article on the law of diminishing returns, and came away with some valuable insight…

Marvin, what do you make of all this? Am I right? Wrong? Be sure to let me know!!

If you have any other questions or feel I’ve missed the mark on something, leave a comment down below or contact me!

I very much look forward to speaking with you…

All the best and God bless,





Can’t decide which headphones to purchase? Interested in a complete buyers guide outlining over 40 of the best options on the market? Click on over to the best audiophile headphones to learn more!!

Be sure to also check out my Reviews and Resources page for more helpful and informative articles!

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