Why do audiophiles spend lots of money on high-end audio equipment and does more expensive gear always sound better than less expensive hardware?

While it is generally true that audiophiles are willing to spend more money on high-end gear than those less passionate about audio, justification for this additional financial outlay is not solely based on the equipment’s definitive sonic superiority.
 
There are a handful of key attributes that define audio equipment’s performance, including: frequency response, detail, texture, layering ability, coherency, vocal presentation, and timbre and tonality. Audiophiles typically seek out gear capable of performing well in many or all of these areas, and it is often these elevated expectations that drive an audiophile’s willingness to spend more. However, there are elements of subjectivity at play, as well as physiological differences, that can lead to variations in interpretation of what sounds “accurate” or “engaging.” Therefore, even if it is generally true that most expensive audio equipment objectively performs better than their lesser priced counterparts, individual preference and anatomy can cause differences in expectations or hearing that can lead to different perceptions of sonic performance, even with high-end audio gear.
 
The Erlkonig is an In-Ear Monitor made by German producer, Vision Ears. By many, it is thought to be one of the best In-Ear Monitors ever made. At a retail price of over $4,000, it is also generally considered to be quite expensive. Widely regarded to perform extremely well, the Erlkonig has 13 balance armature drivers, 4 user-selectable sound settings, and shells made out of silver. While non-audiophiles will likely scoff at its price and be indifferent to the Erlkonig’s specifications, many audiophiles will salivate at the chance for even a single listen. Even though many deep-pocketed audiophiles could justifiably purchase the Erlkonig, there are plenty of audiophiles and non-audiophiles who do not enjoy the IEM’s sound. For others, the shell is ergonomically incompatible with their ears. So, even if expensive audio gear on the whole performs and sounds “better” than lesser priced gear, unique preferences and anatomical variation also shape perception of sonic performance.