Many thanks for your post.
You must have all the market research - how elastic is the demand for high-end electronics? I would think consumers are fairly price sensitive, especially in a deflationary environment, but I could be wrong.
You must have all the market research - how elastic is the demand for high-end electronics? I would think consumers are fairly price sensitive, especially in a deflationary environment, but I could be wrong.
John Duncan
Well-known member
chainrock:
Many thanks for your post.
You must have all the market research - how elastic is the demand for high-end electronics? I would think consumers are fairly price sensitive, especially in a deflationary environment, but I could be wrong.
In my view there is still quite strong demand out there for good product - and as you can see with our recent announcements about our One and Sonata systems coming soon, we have some great new lines coming this year to keep our customers and potential customers excited. With hi-fi separates what we are finding now is that people are doing more research and thus taking longer to decide on their purchase. Quality hi-fi is a considered purchase so brands that were getting opportunist and impulse-buy purchases before may really struggle. At the end of the day there are still a large number of people who love their music and realise they need something decent to play it on. And for those who are always looking for ways to improve their system at minimal cost Dacmagic, even at £249, is still an upgrade that can transform a system, Sonos, Squeezebox, PC or existing CD player to (in our opinion and that of many many leading mags - see the reviews on our website) the quality of sound you'd expect from really exotic brands. Our biggest challenge is making all those customers with B**e iPod sound docks and the like realise that what they really need is something better (albeit not necessarily more expensive) to make their music really come alive.
For sure we'd all love to see prices come down to make our job easier, but those days are sadly over. At least every manufacturer/importer is in the same boat.
Many thanks for your post.
You must have all the market research - how elastic is the demand for high-end electronics? I would think consumers are fairly price sensitive, especially in a deflationary environment, but I could be wrong.
In my view there is still quite strong demand out there for good product - and as you can see with our recent announcements about our One and Sonata systems coming soon, we have some great new lines coming this year to keep our customers and potential customers excited. With hi-fi separates what we are finding now is that people are doing more research and thus taking longer to decide on their purchase. Quality hi-fi is a considered purchase so brands that were getting opportunist and impulse-buy purchases before may really struggle. At the end of the day there are still a large number of people who love their music and realise they need something decent to play it on. And for those who are always looking for ways to improve their system at minimal cost Dacmagic, even at £249, is still an upgrade that can transform a system, Sonos, Squeezebox, PC or existing CD player to (in our opinion and that of many many leading mags - see the reviews on our website) the quality of sound you'd expect from really exotic brands. Our biggest challenge is making all those customers with B**e iPod sound docks and the like realise that what they really need is something better (albeit not necessarily more expensive) to make their music really come alive.
For sure we'd all love to see prices come down to make our job easier, but those days are sadly over. At least every manufacturer/importer is in the same boat.
Seems the prices have dropped since last night - DACmagic £229, 740 £549 - seems a bit indecisive
AEJim
Well-known member
Andrew Everard:
Exchange rates, I suspect...
We have been warning that such increases were all but inevitable for some time...
There could be multiple factors - exchange rates are a big problem and I know our material costs have risen by 40% in the last 12 months alone!
As a manufacturer you try to absorb as many of these fluctuations as you can, but there comes a point where it's just not economically viable to continue without price increases inevitably being passed on to dealers/end-users.
ÿ
James Luce
Brand Manager
Acoustic Energy Ltd.ÿ
Exchange rates, I suspect...
We have been warning that such increases were all but inevitable for some time...
There could be multiple factors - exchange rates are a big problem and I know our material costs have risen by 40% in the last 12 months alone!
As a manufacturer you try to absorb as many of these fluctuations as you can, but there comes a point where it's just not economically viable to continue without price increases inevitably being passed on to dealers/end-users.
ÿ
James Luce
Brand Manager
Acoustic Energy Ltd.ÿ
I also saw the rollback in the price increase, DacMagic is at 229 as alexis pointed out. I am wondering as to why two such sudden and consecutive moves (I mean I can think of a reason or two but it'd be nice to hear from the 'authorities').
This is not a move from us at Cambridge (we can't afford to only increase the price by 15% when we have landed cost price increases of 35%+) this is a move by Richer Sounds to soften the blow by reducing their own margin (quite significantly). Just be happy!
Yus, sometimes you shouldn't question things too much! Anyway, as regards the DacMagic, I think you'd be hard pressed to consider it anything another than good value at any of its recent prices.
I waiting to pickup my new amp (hopefully tomorrow) to give my new DacMagic a test run...! Exciting times!
I hate to be the bearer of doom and gloom but.............
Just before Christmas, I read that some manufacturers were planning large price increases in the New Year. At the same time, some financial pundits were, and still are, worried that if the public stop buying because they are convinced that prices will continue to fall, the depression will turn to deflation. In my view,these two statements are interlinked.
Regardless of the explanations in previous posts, as realistic as they are, a substantial number of people will simply stick with their existing kit, waiting for "better times". For those unfortunate folk who have lost there jobs and finding it tough to keep their roof over their head, those times might be a long way off.
I am looking to replace my ageing DVD player and would love the big Denon 3800BD but cannot justify the price. Is it really three times better than all the £500 players? So, I am lowering my sights to the possibility of the new Sony 5000 at £900 from HiFi Confidential. However, In spite of all the stories of increasing prices, the market place is not what it used to be and I am now questioning just how badly do I need to upgrade at this time. It all still works flawlessly, delivers a very good 3+ meters wide image through my H56 projector and the Denon AVR3803 still "rattles the walls" on demand.
Mind, if I really can get the new Sony 5000BD for less than a grand, I might, just might be tempted.
The morale of this little tale is that it is presently a buyers market and will remain so for some time. Some manufacturers may well go out of business which raises the spectre of yet more doom and gloom. Will my guarantee be worth the paper it is written on?
Just before Christmas, I read that some manufacturers were planning large price increases in the New Year. At the same time, some financial pundits were, and still are, worried that if the public stop buying because they are convinced that prices will continue to fall, the depression will turn to deflation. In my view,these two statements are interlinked.
Regardless of the explanations in previous posts, as realistic as they are, a substantial number of people will simply stick with their existing kit, waiting for "better times". For those unfortunate folk who have lost there jobs and finding it tough to keep their roof over their head, those times might be a long way off.
I am looking to replace my ageing DVD player and would love the big Denon 3800BD but cannot justify the price. Is it really three times better than all the £500 players? So, I am lowering my sights to the possibility of the new Sony 5000 at £900 from HiFi Confidential. However, In spite of all the stories of increasing prices, the market place is not what it used to be and I am now questioning just how badly do I need to upgrade at this time. It all still works flawlessly, delivers a very good 3+ meters wide image through my H56 projector and the Denon AVR3803 still "rattles the walls" on demand.
Mind, if I really can get the new Sony 5000BD for less than a grand, I might, just might be tempted.
The morale of this little tale is that it is presently a buyers market and will remain so for some time. Some manufacturers may well go out of business which raises the spectre of yet more doom and gloom. Will my guarantee be worth the paper it is written on?
To be specific, economists are more worried about an inflationary depression but either way, whether it's an inflationary or deflationary depression, it's still a depression. I really hope the manufacturers can weather this storm because as someone else said, there are some fantastic manufacturers out there making sparkling hi fi for relatively cheap prices.
Don't disagree with you hi fi newbie. To loose any of the manufacturers would be very bad but it is not beyond possibility in these difficult times. Being in business myself, it makes my blood boil that the bankers who got us into this mess get the bail-out whilst we all pick up the pieces and the politicians aren't telling "the truth, the whole truth and nothing but the truth". But then I suspect that nobody really knows how things will evolve over the next 6-12 months.
chebby
Well-known member
I guess it's better if everyone - who still has disposable income - spends it rather than saving for a 'rainy day' (just to see it all wither away to nothing from inflation etc.)
At least if everyone (who can) spends, it keeps other people making stuff and selling stuff and may just keep more people in work a bit longer.
Got to be better than giving it all to failing banks to reward failing directors.
But then, what do I know?
At least if everyone (who can) spends, it keeps other people making stuff and selling stuff and may just keep more people in work a bit longer.
Got to be better than giving it all to failing banks to reward failing directors.
But then, what do I know?
Cameraman:
Don't disagree with you hi fi newbie. To loose any of the manufacturers would be very bad but it is not beyond possibility in these difficult times. Being in business myself, it makes my blood boil that the bankers who got us into this mess get the bail-out whilst we all pick up the pieces and the politicians aren't telling "the truth, the whole truth and nothing but the truth". But then I suspect that nobody really knows how things will evolve over the next 6-12 months.
They were going to tell us the truth, but they left the piece of paper with the answers on in their second house / constituency house / local John Lewis / Jacqui Smith's sister's spare bedroom.
Don't disagree with you hi fi newbie. To loose any of the manufacturers would be very bad but it is not beyond possibility in these difficult times. Being in business myself, it makes my blood boil that the bankers who got us into this mess get the bail-out whilst we all pick up the pieces and the politicians aren't telling "the truth, the whole truth and nothing but the truth". But then I suspect that nobody really knows how things will evolve over the next 6-12 months.
They were going to tell us the truth, but they left the piece of paper with the answers on in their second house / constituency house / local John Lewis / Jacqui Smith's sister's spare bedroom.
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