Put Off By Price Rises

[crusaderlord]

Whilst i am sure there are more rises to be announced - it looks as though some models of speakers especially are beginning to look comparably expensive now.

Take the Spendor SA1 for example - now c£1700 with stands and the PMC GB1i now c£1,425 (i had my eye on trying some of these this year but that was at prices closer to £1,200 and now have had second thoughts and will stick with what i have).

I wonder how many people will now be put off upgrading for a while due to the economic climate and more importantly the Hi-Fi world general price increase trend. It could end up self defeating in the long run.

 

[Andrew Everard]

Better by far to stick with products that maintain their already too high prices.

BTW why are Apple products the same price everywhere you look, from their own PommeShops to between the oranges and pears at Asda?

Restrictive supply chains? Or the magnanimous people in the Infinite Loop being egalitarian as well as wonderful?

Irony: in America, it's how iron tastes...

 

[Andy Clough]

As I and others have explained elsewhere, manufacturers are caught in a bit of a bind on this one. I'm sure most of them don't want to put up prices in the current climate, as they know it may stifle demand for their products.

But with many products manufactured and sourced in the Far East (even by British manufacturers), the weakness of the pound against other currencies - particularly the dollar - means their material costs have risen by anything up to 30 per cent.

They have no choice but to pass some of those increases on to the customer, otherwise they risk going out of business. If you want a more detailed explanation of the problems, read the second page of this thread where the CEO of Cambridge Audio gives a very thorough analysis of the exchange rate issue.

 

[Anonymous]

There was me thinking that Spendor was a British manufacturer......

 

[Andrew Everard]

MENISCUS:There was me thinking that Spendor was a British manufacturer......

Even British manufacturers have to import components and raw materials...

 

[Anonymous]

Very true but not a lot of electronics in a speaker methinks, would have thought that most of it was cabinet work labour wise............

 

[chebby]

Yes of course some have genuine reasons to raise prices. Others are probably just jumping on a band-wagon. Which is which?

I know a company that employs over 200,000 people worldwide that has grown it's business 4.7 percent in the last year and has just posted record 1st quarter results. It has never failed in 25 years to show year on year growth and has never failed a divident payout. It is taking on new clients and has paid all of it's debt and is still buying out companies.

To celebrate it's robust financial health it is laying off 7 percent of its workforce and freezing/cutting all salaries and employee bonuses and raising prices to customers across the board by an average of 12 percent. The shareholders will still get increased dividends and top management are still awarding each other fat bonuses. (There is a brand new corporate jet boasted of in the same company magazine that the 7 percent layoffs are reported in!) Sponsorship to major sporting entities have been renewed (I cannot say who as this would make them too easily identifiable.)

This is not unusual. Even during the economic crisis many companies still do well. Not passing on reward to employees and customers who make this possible is immoral and economically dangerous. In my example above it means 200,000 people will not have as much money this year to spend and help keep others employed.

I believe it to be an economic duty on those who do well to spend it so that others can keep working and the economy can be helped a little bit further to some kind of recovery.

I only have sympathy for companies who are reluctantly forced to lay-off, cut wages, raise prices etc because they are desperate to survive.

 

[Anonymous]

Apparently the majority shareholding in Spendor is not UK.

 

[Anonymous]

Chebby,

If the company can survive and thrive with 7% less workforce, it means in its current form it's not efficient and should have laid off those 7% long ago. This is the basic principle of capitalist society - efficient use of capital and labor.

I know this is tough pill to swallow, but keeping people in the jobs they shouldn't be in (French style) is going to make companies even less efficient and less competitive, hurting everyone in the long-run (another GM anyone?).

Recessions are ultimately good for long-run health of the economy, albeit painful in the short run. They are adjustment processes, whereby companies cut excess costs, innovate and find ways to do more with less - which in the end is the key to economic growth.

 

[Andrew Everard]

MENISCUS:Very true but not a lot of electronics in a speaker methinks, would have thought that most of it was cabinet work labour wise............

But drive units, cabinet materials, veneers, crossover components and internal wiring are probably all imported...

 

[Andrew Everard]

Eddie Pound:Apparently the majority shareholding in Spendor is not UK.

Source?

 

[John Duncan]

MENISCUS:There was me thinking that Spendor was a British manufacturer......

And Apple are an American company...

 

[chebby]

Not at all Chainrock. It is a gravy train. Simple. None of those cuts will ever affect the 'suits'. They will still continue to plunder pensions, wages and bonuses that have been earnt in order to pay their friends and buy jets and get free luxury seats at prestigious sporting events.

The only people swallowing your 'pill' are the people who actually make product and provide service. Fred Goodwin is not alone. Every major corp has them.

Recessions are necessary to ensure the gap between rich and poor is widened. The post-war meritocracy and free higher education and class mobility experienced in the first few decades after the war (especially in the UK) was just a necessary 'evil' to these people. (The rich are usually too stupid as a class and sometimes have to 'import' talent from the lower orders.) Now the ladders are being pulled up and some day soon you will have to start showing respect to them again!

The politicians are laughing in your face and their husbands are openly buying porn from the internet and spending out on free houses for their parents with tax-payers money. (If radio 4 on Sunday morning is to be believed.)

Is that Capitalism?

 

[Andrew Everard]

Y'see, you don't get much past JD...

 

[Andrew Everard]

chebby:Not at all Chainrock. It is a gravy train. Simple. ...
...Is that Capitalism?

Rant mode now disengaging, Please wait...

 

[Anonymous]

Andrew Everard:

Eddie Pound:Apparently the majority shareholding in Spendor is not UK.

Source?

Spendor Audio Systems Annual Return 363a, Companies House.

 

[Andrew Everard]

Eddie Pound:Spendor Audio Systems Annual Return 363a, Companies House.

Thank you. So not 'apparently' at all, then...

 

[Anonymous]

chainrock:
Chebby,

If the company can survive and thrive with 7% less workforce, it means in its current form it's not efficient and should have laid off those 7% long ago. This is the basic principle of capitalist society - efficient use of capital and labor.

I know this is tough pill to swallow, but keeping people in the jobs they shouldn't be in (French style) is going to make companies even less efficient and less competitive, hurting everyone in the long-run (another GM anyone?).

Recessions are ultimately good for long-run health of the economy, albeit painful in the short run. They are adjustment processes, whereby companies cut excess costs, innovate and find ways to do more with less - which in the end is the key to economic growth.

Chainrock, unfortunately that's rubbish. The global company I worked for cut its global workforce solely because, despite the growth, profits etc its shares fell slightly during the GFC, and employment was linked to share performance. The project I was on was one of the first cut, despite the fact it had repaid development and was looking at making a small profit in the short term and a healthy one in the long term. Efficiency had zero to do with it, it was all about the accountants running the company and the returns for the shareholders.

The French model you disparage actually makes sense. As M Sarkozy said, and he's not a man with whom I normally agree, what's better, letting people sit around doing nothing and paying them or keeping them in work and paying them? Society is people, not money or a handful of suits in a different country.

Frankly, after 5 months of creative idleness with no job prospects this year or in the forseeable future, I'm all for the French model. Posting on forums like this one is fun, but I'd rather being doing something more meaningful with my time and the talents such as I have them.

 

[professorhat]

These threads always amuse me, they start off innocent comments about price rises and before you know it - socialists of the world unite against the oppressors!

Oh wait, this is a hi-fi forum...

 

[Andrew Everard]

professorhat:socialists of the world unite against the oppressors!

You tell 'em, Foxie...

 

[Anonymous]

For me its all a matter of economics, I was looking into purchasing the Spendor SA1s, like the original posters, now I will not.......................

 

[stephennic]

Hi,

I priced some cable at the end of last year it was going to cost $99 now in March it will cost $149 a staggering 50% increase (In Australia).

Soon the average hifi person maynot be able afford hifi if it keeps going up at this rate. Another person priced NAD equipment at $999 and now its $1499.

Cheers,

Steve.

 

[Anonymous]

chainrock:

Recessions are ultimately good for long-run health of the economy, albeit painful in the short run. They are adjustment processes, whereby companies cut excess costs, innovate and find ways to do more with less - which in the end is the key to economic growth.

I agree 100%, those that come out through this the other side will be stronger, more efficient and competitive, a little pain for long term future gain, the good products will always sell.

 

[Anonymous]

What a lot of rubbish. I'm getting out of here. You never know, with the amount of fools on this post, idiocy might be contagious.

See you when winter bites cold next.

 

[Terryff]

Love the diversity of opinion. But you can boil down the very essence of capitalims to chickens and foxes scenario. Too high prices...people dont buy, notwithstanding people bleating (see what i did there) about manufacturing costs etc. Let's be honest, most electronic goods are still a little overpriced so a little levening might be good. Quality will always attract a higher premium and people will pay if that is the market they are in. If you worry too much about these things you will get an ulcer.ÿ