Allright,
I can understand why the line is expensive. I can understand that the rods have to be light and put up with a lot of whipping, but why the reels? Most of them aren't too mechanically complicated. Why are they so expensive?
Flys are a lot cheaper than lures. It's just the reels that are holding me back. And guys complain about the prices of Van Staal spinning reels!

PATRICK, they are NOT that expensive!
Redingtons sell for $205.00 club price is
$164.00 now thats NOT bad! same w/ rods
just check my banner ad. need a quote just e-mail.
"GOOD LUCK GOOD FISHIN"

Patrick,
The most popular spinning and casting reels are mass produced in factories and sold by hundreds of thousands (millions?). Mass produced fly reels are equally inexpensive (LOTS of salt water fly fishers use a $35 Pfleuger Medalist, $50 Okuma or $80 Pfleuger Supreme). You don't need a Tibor (mega $) or even a Teton Tioga. Such premium reels are hand milled from aircraft grade bar stock aluminum for a relatively small market. When you put the same amount of effort into a limited production spinning or conventioial reel, you get the same price effect.
Same goes for rods, although I think the high end rods have gone off the deep end! I look at rod makers like St. Croix and Loomis that make all kinds of rods on similar blanks--and it seems like they tack on a $100 or more just because it is a fly rod. I guess my limited market argument applies here to some extend.
You can get a 9 wt. Reddington Red Start rod, Pfleuger reel with extra spool and any of the popular intermediate and sinking lines and be in business for less than $300. If you can go up some, I would put the extra money in the rod and not the reel.

Dave's correct. No need to spend $600+, especially for your first outfit. The fish won't know the difference. :)

Here in Britain we pay pounds for your dollars for the same gear !!
I am constantly amazed at the US/UK price differential for the same stuff . As an instructor I can obtain significant discounts in this country and at the risk of becoming very unpopular : the real reason is the mark up on most fishing gear , yes , even in the States . Too high .
OK Milled reels are works of engineering and are great to fish I agree , ( I have several ) , but totally unnecessary for most , most , fishing . Also , there is too much hype re salt water fly fishing gear , period, inevitable I suppose , (sorry if that sounds a bit cynical ).
A beginner should not begin with heavy gear , 8 wt is fine outwith very windy conditions which he/she should not bother with initially . This is freshwater gear , ( use plenty backing if big fish expected !!!) , clean it properly afterwards in the kitchen sink and all will be well .

Let's try and include people into this great sport of ours and please also let's get rid of the Salt Water HYPE !
Not all stripers are twenty five pounds .
Replies welcome . Smilie here !!!
Thanks .

Because people are silly enough to pay an extravagent price. Fly fishing is associated with the upper class, and people spend money on fly tackle exactly as they would on a prestigious car, to show that they have the wherewithall to do so. True, fly reels are made in small volumes, but that's because they are so simple, compared to other reels, that any machinist can have a go at building his own. Ask any rod builder; a fly rod is the simplest of all rods to build. It's the social politics that make it expensive.