Are Price Rises always a Wise Move?

27 replies

I have recently returned to work after taking a break for 5 months, and since I have been back I have been diligently saving, which will still take me some time to put aside some money for a BeoVision Avant 55 and a set of nuns aka penguins aka BeoLab 20s.

I'm no where near the goal, but it's still been a while since I have actually saved for something, so it's going well and i feel good about myself.

I received an email from B&O, not my local store, but our Sydney store where i bought the BL12 whilst I was on the way back to the country as it was the closest store.

This email said come in and buy before the Price Rise from 1 December 2014.

As a Contract Manager I know how to deal with indexation, and whether there is a price rise; or a price decrease, sometimes the costs align with real world conditions.  

It seems prices at B&O only seem to be going up, and if the market is down, they never decrease - only stay the same as last year.

But is this a wise move?  I read recently that the IMF was saying that the world economy, is not growing as expected as people are still tightening their belts.  Are B&O cutting off their nose, to spite their face?

I believe that a price rise is not justified. 

valid points Martin and it's a hard one to answer as you want to entice young and new customers whilst heavily investing in R&D and cutting edge. products.This field of technology is fast moving and I would assume you spend time and money chasing systems that never take off.

I was thinking this morning that B&O should push more on its "Play" brand in the automotive world, we already see premium systems in Audi and Aston Martin respectfully but why not push Play to a more fun, funkier young car audience brands like Mini etc and get the name out there.

Also could B&O look at adding more value to their products rather than bringing the price down, better warranties, technical upgrades, guaranteed by back prices when up-grading, classic servicing etc.

 

Personally, I think you could do more harm than good by dropping the price of a product.  For every customer you gain by dropping the price of a product you'll surely have ten who will be absolutely livid - half of which probably wouldn't buy B&O again...

Adding value is the best idea. It gives the stores more in their armoury to sell a product.  It's all about the salesman and the customer at the end of the day...  the more he has to sell the product with, the better his chances of making a sale - and that's what it's all about.

Lee

High prices -high depreciation.

As I found out to my cost, just look at what the BV 7-55 3D cost originally, and the price it sells for now.

In my case it was an unreliable TV with a resale value that sank like a stone.

At £3200, a LG 55EA980W OLED TV plus a Focal Dimension Soundbar & Sub Base  now provides my AV pleasure.

Michael, my letter also included a 0% offer for 24 months.

I imagine the AU$ exchange rate fluctuations might drive a price increase - or other importation cost charges e.g. fuel ?

 

Like you I have been diligently saving ... for me now the dilemmas are

-- taking the 55" when I was wondering about the mythical 65"

-- taking the MK I when there may be a MK II around the Christmas corner

 

Perhaps I should take a bet by buying my speakers now and Avant later ?

A dollar averaging strategy ?

Aussie Michael wrote:

I have recently returned to work after taking a break for 5 months, and since I have been back I have been diligently saving, which will still take me some time to put aside some money for a BeoVision Avant 55 and a set of nuns aka penguins aka BeoLab 20s.

I'm no where near the goal, but it's still been a while since I have actually saved for something, so it's going well and i feel good about myself.

I received an email from B&O, not my local store, but our Sydney store where i bought the BL12 whilst I was on the way back to the country as it was the closest store.

This email said come in and buy before the Price Rise from 1 December 2014.

As a Contract Manager I know how to deal with indexation, and whether there is a price rise; or a price decrease, sometimes the costs align with real world conditions.

It seems prices at B&O only seem to be going up, and if the market is down, they never decrease - only stay the same as last year.

But is this a wise move? I read recently that the IMF was saying that the world economy, is not growing as expected as people are still tightening their belts. Are B&O cutting off their nose, to spite their face?

I believe that a price rise is not justified.

New speakers already way overpriced and not selling well, this is not good news for the audio range!
Price rises are absolutely warranted but only if pay goes up. My salary has stayed the same since 2010.
Sturrock, how do you know that the new speakers aren't selling well?

Do you mean the BL20 or BL18 or both?

Do you think the price is putting people off in a recession or old beofans dying off and youngsters preferring Apples and Dr Dre's beats instead or some other intangible factor?
seethroughyou wrote:

Price rises are absolutely warranted but only if pay goes up. My salary has stayed the same since 2010.

Ditto
seethroughyou wrote:

Sturrock, how do you know that the new speakers aren't selling well?

Do you mean the BL20 or BL18 or both?

Do you think the price is putting people off in a recession or old beofans dying off and youngsters preferring Apples and Dr Dre's beats instead or some other intangible factor?

I just speak to dealers I know. it is a shame because they do sound wonderful.

Price is a consideration, but also customer tastes now tend to dictate speakers that are less noticeable, visibly. Manufacturers and distributors I speak to confirm my personal experience.

Sound bars are very popular, yes a compromise sonically, but even at home my wife hates the look and clutter of surround sound speakers in a normal living room so we have changed to a focal dimension sound bar. Not ideal for a sound fan like me but a happy wife means a happy life 🙂.
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