Why the huge increase in the price of Sonus Farber Amanti G5 speakers.


Just the other day, the G5’s were $36k and now they’re $43k!  I’m thinking it’s too soon for it to be tariffs.  Is Sonus Farber selling so many pairs that they’re just getting greedy?  Whatever the reason, an almost 20% price increase can’t be good for business.

 

curiousjim

I used to manage retail stores, lumber and hardware. I set prices mostly on the basis that 40 cents out of a dollar would be profit. If the wholesale price went up for any reason, I would still make 40 cents out of a dollar. Target, I think, considered showing the tariff and adding it on to the retail price, but the Whitehouse put a lot of pressure on them not to do that. I don't know how every store is managing the tariffs, but I have to think that a lot of them are looking at the wholesale price and adding on their normal markup. So, in that case, the tariff would be doubled or nearly doubled. 

I asked the dealer who sold me my Sonus Faber Olympica 5 speakers why they had jumped from 18,000 to 22,000 and he said it was because of the tariffs. Although, when I was reading reviews of my SF Olympica Novas, they were priced at 15,000, so there had already been a recent jump that wasn't because of tariffs. So, who knows? Obviously, though, Sonus Faber believes they can sell speakers at this elevated price, and they're probably right. If I were shopping for Sonus Faber speakers today, I'd probably buy the Olympica Nova 3 with one less woofer than the 5. $22,000 would be too high a price for me. When I bought the 5's I was looking in the $15,000 range. I think this will affect what people purchase.

Why the bickering over snorus farberge??? 

I want to rant over the price on magico speakers,  they got about 30% price raised in the last 3 years in Europe.  

To start a post with " why more expensive " is absolutely political and on another note Europe is at this moment at war with Russia ( have been for 3 years soon ) and it's expensive ( what do you think happen price on energy, food ,raw materials among other.. 

As a manufacturer you have the right to price your product whatever you want the rest is up to the customer... 

If you don't like the price ( you need to pay more than you think it's worth) bye something else. 

I would like more discussions about gear no regards of price, like I bought the shunyata omega usb today and it is awesome ( because I did ) and the questions goes " what is better then your previous cable " without the " cable don't make a difference " a$$ hats camping out. 

So the rant is over but I still believe nobody should pay more than they think it's worth and if you spend more than you can afford, seek help 🙂

I too am glad I bought my Olympica Nova 5s before this last hike. I did overspend my budget of $15,000. The dealer demoed the Nova 3 because he had no Nova 5s on the floor. He could tell I like bass by the kinds of music I listen to, so he talked me into the 3k for the extra one. They were so short of the 5s that I had to wait 5 weeks for mine to be shipped. I was splurging because of an inheritance and I am not sorry I paid the extra 3K. As I said before, $22K would have put me into the 3s for 18K.

There are a number of times I have spent over my budget and have not been sorry. When I bought my house in L.A. I went 10 per cent over. I have never regretted it especially with the increase in the housing market. Everybody has to make their own choices. My speakers befroe these were Golden Ear 2+. Less than a quarter of the price of the SF. That was my budget then--no inheritance--and my budget went up. We each have to make our own decisions.

As an ex-retailer, greed seems like a loaded word. When I was in the hardware/lumber business I almost gave away drywall. But i took a 50% plus margin on the drywall paste and other accessories in order to make a profit. Retail is not an easy busienss. I was reading about the costs a high-end audio dealer has to pay in order to sell high-end stuff. Rent on the building and experienced staff. Investment in floor models. Insurance. And so many other things that comes out of the markup.

One little nick-pick, margin is different than markup. If a retailer pays $1 for something and marks it up 40%, then the margin is the gross profit on the retail price of $1.40. The margin is a bit more complicated to calculate. If you work on a 25% margingthan your profit is 25% of a $1.40, or  35 cents. My advice. Grocery stores and Costco work on very low margins but they sell a lot of stuff with high turnover. Boutique stores need to be close to a 50% margin to make a decent profit. In ladies ware they call it keystone. But in ladie's ware they're going to be marking a lot of clothing down to cost or below at the end of the season.

Maybe that explains why I don't think of retail as "greed." I've become a free marketer in my old age