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Dollar vs Euro and European gear prices.


RadoStefanov

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What are we Europeans going to say, Rado? The prices will go up here soon enough, and they never go down again when the Euro gets stronger. Your luck is that most of the gear sound mixers use is from US companies, aside from microphones maybe. (And you can still get a German MKH 50 for 1200 $ at B&H, while in Europe you pay 1550 euros plus tax.)

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Also one important thing to consider is that probably most of the eletronic components used to manufacture all that gear made in Europe is bought in China, Korea,Japan etc...  and is probably paid in US Dollars, so a weak Euro doesn't help very much European manufacturers to keep their prices either. 

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When the euro goes up gear prices go up right away.

The dollar has spiked to its highest in 12 years this week

It is only fair to reduce some prices...

JUST SAYING!!!

i know you like you're zaxcom but had you bought wisycom radios (on US release) you could have benefited from a very generous introductory price (way under cutting euro/uk retail price) for some high grade euro sound kit. And if/when you decide it's not the product for you you could sell it to a european for what you paid. i know this is not exactly the point of your post but my point is when you pay in euro or sterling the dollar prices look like give aways.

 

dan.

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Many retailers would have bought their sales gear weeks or even months ago at a very different dollar/euro rate. If they lowered their prices now, they'd lose a lot of money. That applies only to stock items, of course, anything they need to order from Europe should indeed be cheaper now. I suspect, though, that a certain degree of currency instability will be factored into the retail price to begin with, sometimes increasing sometimes decreasing the retailers profit margin.

And one last consideration I can come up with is that some manufacturers ask their dealers to not sell a product for less than a certain price they define - regardless of exchange rates

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From a manufacturing standpoint this is very difficult. Actually, same goes for the re-sellers. I've been in the shoes of a re-seller and now  a manufacturer. 

 

Manufacturers put out a price list once a year. The prices are determined based on cost to make (of course) but also we have to take into account the fluctuations of currencies. We can't put out a new price list every time the dollar goes up or down. If we did that's all we'd ever do. Dealers don't have the time to deal with this either. The pricing is done in such a way to account for currency fluctuation. 

 

Also, you have to take into account manufacturers that have unilateral and MAP pricing policies. Dealers that sell on websites have to make sure the pricing is accurate all the time. If I start giving my dealers a new price list every month they are going to get really grumpy really fast because of all the items on their websites that they have to adjust pricing for. 

 

Due to inflation, prices are never going to come down, at least in any sort of dramatic way. I've only ever seen prices go up. Manufacturers try to hold off on increasing prices for as long as possible. 

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What are we Europeans going to say, Rado? The prices will go up here soon enough, and they never go down again when the Euro gets stronger. Your luck is that most of the gear sound mixers use is from US companies, aside from microphones maybe. (And you can still get a German MKH 50 for 1200 $ at B&H, while in Europe you pay 1550 euros plus tax.)

 

+1

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  • 3 weeks later...

They often go up IMMEDIATELY, even though the things on the shelf today were imported and distributed months ago, at a lower price. It's called profiteering.

Not really. When a price list is released it is "effective immediately" or "effective on the 1st of next month", so it's not up to the dealer. If you have an item that's been sitting on the shelf for a few months, and get a new price list and the price has gone up by 10%, that increase means "now", not "on only the new stuff you order", especially if MAP and Unilateral are involved. It has to be this way. There has to be an "effective date" in order for this to work. 

 

Overall, I've noticed the price to performance ratio drop on certain things. Remember what a Nagra used to cost in the 70s and 80s? A Deva II in 2003? Remember what those machines were capable of? Now look at a 633 or Maxx or 664 or Nomad. Those things are far more capable than their predecessors and cost much less, and those are the machines that make the most money in a kit rental. More than a wireless system. More than a mic, or a boom pole, or IFBs. 

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  • 2 weeks later...

Today we had Focal Demo Day here in my city. I asked about this to Javier from Focal and told me "Focal sell to distributors and dealers in one fixed price for EU, US and around the world. This is the price policy of the company". The rest is not their hand (duties, VAT, shipping etc).

 

Example: EU distributor buy one monitor from Focal for 3.000€. US distributor buy exactly the same product from Focal for 3.000€ ($3,408). Not lower; not higher. So the ball now it's to distributors and dealers for end users (like studio) prices.

 

Why this? Because everything inside and outside from Focal monitors (including the assembly work) are from France. So when the dollar goes up or down from euro; doesn't affect the cost of manufacturing. So everyone (distributors) buy one monitor for 3.000€. The rest it's just economic politics.

 

BTW

 

The SM9 monitor..... Butterflies in my heart! Sweet!

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The rest it's just economic politics.

That's not quite fair. Even though for Focal the price per unit never changes (although it will change if one of their suppliers changes their price) for the distributor in another currency country it does. It depends on the exchange rate, and various other factors - VAT however is not one of them.
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