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jimknopf Platinum Member
Joined: 17 Jan 2011 Posts: 3374
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Posted: Thu May 12, 2011 1:46 pm Post subject: |
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Greg, could you explain your assumption of a different price margin?
If I see the US prices and the sharp market fight over there, compared to the sluggish European market where resellers hardly ever give each other a real price margin fight, I'd rather think the opposite. Add that European dealers have a habit of even hiding extra margins behind European taxes, I have big problems believing your assumption.
The European market as a whole hasd a higher BIP than the US, so the European economic power isn't behind.
I really think Korg's behaior towards European customers is lacking any accaptbale explanation I could follow, and I just regard it as completely unjustified, impertinent two class behavior.
Sorry to insist: I appreciate your kind words anyway. |
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GregC Platinum Member
Joined: 15 May 2002 Posts: 9451 Location: Discovery Bay (San Francisco Bay Area)
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Posted: Thu May 12, 2011 1:59 pm Post subject: |
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jimknopf wrote: | Greg, could you explain your assumption of a different price margin?
If I see the US prices and the sharp market fight over there, compared to the sluggish European market where resellers hardly ever give each other a real price margin fight, I'd rather think the opposite. Add that European dealers have a habit of even hiding extra margins behind European taxes, I have big problems believing your assumption.
The European market as a whole hasd a higher BIP than the US, so the European economic power isn't behind.
I really think Korg's behaior towards European customers is lacking any accaptbale explanation I could follow, and I just regard it as completely unjustified, impertinent two class behavior.
Sorry to insist: I appreciate your kind words anyway. |
sure, I know something about capitalism, having worked in the corporate
world for 30 years. I certainly have my sharp criticisms of it, as well. To give you one, many co's ( here in the US) are highly short sighted, 99% focused on immediate results.
We will never know exactly the figures and data of a Korg, Roland, Yamaha
in this niche called the workstation/synth marketplace.
we can make some reasoned estimates, I think. Profit margin and sales opportunity dictates behavior. Don't you agree ?
I suggested 30% here in the US, at retail. This is not far off.
Why don't you check your sources in your country for a profit estimate ? _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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Zeroesque Senior Member
Joined: 17 Jan 2011 Posts: 451 Location: SoCal
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Posted: Thu May 12, 2011 5:42 pm Post subject: |
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GregC wrote: | In the US, there is quite a bit of margin ( let's estimate 30%) to play with. |
It's been a few years since I was in the industry, but this would definitely be toward the high end of gross profit for high-tech MI hardware. I highly doubt retailers will see this much profit with the Kronos or any pro synth, for that matter. Perhaps you meant for this to be an overestimate, however. _________________ Kronos 61, Kronos2-88, Hammond B3, Baldwin SD-10 |
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GregC Platinum Member
Joined: 15 May 2002 Posts: 9451 Location: Discovery Bay (San Francisco Bay Area)
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Posted: Thu May 12, 2011 5:48 pm Post subject: |
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Zeroesque wrote: | GregC wrote: | In the US, there is quite a bit of margin ( let's estimate 30%) to play with. |
It's been a few years since I was in the industry, but this would definitely be toward the high end of gross profit for high-tech MI hardware. I highly doubt retailers will see this much profit with the Kronos or any pro synth, for that matter. Perhaps you meant for this to be an overestimate, however. |
context is key.
the 30% figure is derived from the difference in MSRP and actual dealer cost.
for a hot new w/s, there is a strong effort to keep the margin high.
In a year or 2, ( or less), the street price will take over, and eventually drive the profit margin to a small % _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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