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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: Mon Apr 18, 2011 2:17 pm Post subject: Is your retailer/Korg distributor entitled to a profit ? |
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It seems that every other post here is vehemently unhappy about the high price of Kronos.
I realize its good to vent about factors beyond our control.
Especially if there is a good conspiracy theory involved
However, we are surrounded by high prices of necessities.
For example the cost of energy/fuel/gas is insane. And this has been going on for decades. No doubt, that is a contributor to the price of the Kronos.
Just 1 example, FYI.
I own a small business. I am intimately aware of what it takes to have a fair profit. I can tell you the marketplace is most complex & unpredictable.
It takes tremendous effort and skill to master every facet. And the small
business deals with the most brutal tactics on a daily basis.
Without a fair profit, a business will not survive. I accept competition and know choices are good for the customer. I can assure you I have no illusions of getting wealthy in my endeavor.
I also suspect your least favorite retailer/country distributor is not getting
wealthy either. They might be just getting by, year after year.
Something for you to consider. _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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ScoobyDoo555 Platinum Member
Joined: 12 Jan 2008 Posts: 840 Location: Herefordshire, UK
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Posted: Mon Apr 18, 2011 2:20 pm Post subject: |
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With reference to MY post about the high price, tbh, I'm really pleased with the level of discount that was offered to me, so NO complaints there.
What I'm disappointed over is that I thought the "entry-level" K61 would be a bit cheaper.
This is a reflection on the UK price that's being *potentially* set - I say that as WE DON'T KNOW FOR SURE.
With the initial report, I'm disappointed, but I'm hopeful that it will be a bit cheaper.
But thank you for your patronising post _________________ Yamaha SY77 & KX88, SSL Nucleus, Korg Kronos 61, Wavestation A/D, Access Virus B, Roland XP30, DeepMind12D, System 1m, V-Synth XT, Focusrite Red16Line, Unitor 8, Akai S3000 XL, Alesis Quadraverb+, Focal Shape Twins, Full fat iMac, Logic Pro X, ProTools 2021, loadsa plugins.
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RKfan Senior Member
Joined: 15 Feb 2011 Posts: 402 Location: Cambridge, England
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Posted: Mon Apr 18, 2011 2:23 pm Post subject: |
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Absolutely - manufacturers and retailers should make a profit
Can I have a Kronos 61 for $2999 please (irrespective of where I live)?
No - I can't!
Can you explain why the current rumour puts the price of the K61 in the UK at £3,000 - or $4,800?
Is there a difference between profit and profiteering? |
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RKfan Senior Member
Joined: 15 Feb 2011 Posts: 402 Location: Cambridge, England
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Posted: Mon Apr 18, 2011 2:30 pm Post subject: |
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Ooooh and another thing for us all to consider if we want to be junior economists......
You can stack em high and sell em cheap or you can price yourself out of the market and then wonder while the sales volume was so lousy.
I hope Korg takes a third approach - make the cost in Europe and the US the same (or at least pretty similar) - I dont mind paying 20% more dollar wise ($3000+20% = £2250) - but I do object to 60% more.
And that's why we's bitchin' |
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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: Mon Apr 18, 2011 2:35 pm Post subject: |
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RKfan wrote: | Absolutely - manufacturers and retailers should make a profit
Can I have a Kronos 61 for $2999 please (irrespective of where I live)?
No - I can't!
Can you explain why the current rumour puts the price of the K61 in the UK at £3,000 - or $4,800?
Is there a difference between profit and profiteering? |
why don't you simply ask your dealer ? I have no ability to reply to rumor.
I ordered my K88 and know exactly what my dealer is making. I am paying for shipping and the dealers margin is less than 10% of the retail price
( that I paid).
I am also a regular customer(for several years) and buy all my gear there.
( no, its not Sweetwater)
When a new board comes out, I think almost all dealers are trying to capture a good profit. I suspect there is a 3 month window until the
price gets down to a ' street price'.
So try waiting for 3 months. _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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DaveBoulden Senior Member
Joined: 20 Nov 2009 Posts: 314 Location: Kent, United Kingdom
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Posted: Mon Apr 18, 2011 2:39 pm Post subject: |
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Yep, I can only reiterate ScoobyDoo555 and RKFan's posts. My complaints about price have only been about how much more we pay in Europe than in the US, not about high prices alone. For what it's worth, I think the US prices are very good value and, like any user in Europe, I would be overjoyed if I could get my Kronos at the equivalent of the US price plus my local sales tax (currently 20%).
I am all for the music shops making a profit, I'm a businessman myself. The US shops are making a profit at the RRP of $2999 for the K61, so why are the UK prices mooted to be inordinately higher. No conspiracy theories here, it's just how it is. |
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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: Mon Apr 18, 2011 2:40 pm Post subject: |
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RKfan wrote: | Ooooh and another thing for us all to consider if we want to be junior economists......
You can stack em high and sell em cheap or you can price yourself out of the market and then wonder while the sales volume was so lousy.
I hope Korg takes a third approach - make the cost in Europe and the US the same (or at least pretty similar) - I dont mind paying 20% more dollar wise ($3000+20% = £2250) - but I do object to 60% more.
And that's why we's bitchin' |
thats the rub. I have a rough estimate what the K preorders are in the US.
Its not a big #. For all the Internet noise, I thought it was a bigger #.
I know the w/s market is small, in the scheme of things. So I suspect
your country distributor already has a sales forecast for your country.
If you know you are getting throttled, wait 3 months. If the K is overpriced, as you say, few will buy it. _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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RKfan Senior Member
Joined: 15 Feb 2011 Posts: 402 Location: Cambridge, England
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Posted: Mon Apr 18, 2011 2:43 pm Post subject: |
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I already asked Korg - and in the UK they aren't saying anything.
There is another pretty active thread which gives some figures from a UK rep - and Sound on Sound (published today) is mentioning around £3,000 ($4,800) starting prices (again not the official figures).
There is also speculation about why the European prices have not been set yet - but if these are correct then the US should expect the price to go up (a lot) even though the suggested prices were released ages ago. |
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DaveBoulden Senior Member
Joined: 20 Nov 2009 Posts: 314 Location: Kent, United Kingdom
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Posted: Mon Apr 18, 2011 2:45 pm Post subject: |
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GregC wrote: |
why don't you simply ask your dealer ? I have no ability to reply to rumor.
I ordered my K88 and know exactly what my dealer is making. I am paying for shipping and the dealers margin is less than 10% of the retail price
( that I paid).
I am also a regular customer(for several years) and buy all my gear there.
( no, its not Sweetwater)
When a new board comes out, I think almost all dealers are trying to capture a good profit. I suspect there is a 3 month window until the
price gets down to a ' street price'.
So try waiting for 3 months. |
Greg, you're bordering on coming across with an "I'm alright, Jack" attitude about this. Quite plainly, we'd be as happy as you if we could get a K61 for $2999 plus 20% sales tax, making it just over £2200 in the UK, but they're already saying it's going to be at least £3000. How happy would you be if the K61 were available in Europe for £2200 but the exact same item cost you over $4000 in the US? |
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RKfan Senior Member
Joined: 15 Feb 2011 Posts: 402 Location: Cambridge, England
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Posted: Mon Apr 18, 2011 2:46 pm Post subject: |
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Greg,
You make a very interesting point.
I am quite prepared to wait 3, 6 or maybe 9 months - maybe we all should if the final released prices are not to our liking.
If £3,000 for a K61 results in few or no sales - Korg UK might take the hint.
If the price is £2,250 or thereabouts - then I will be fighting my way to the front of the line. |
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Bertotti Platinum Member
Joined: 10 Jul 2010 Posts: 3384 Location: Middle of nowhere
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Posted: Mon Apr 18, 2011 2:51 pm Post subject: |
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Quote: | There is also speculation about why the European prices have not been set yet - but if these are correct then the US should expect the price to go up (a lot) even though the suggested prices were released ages ago. |
That is what I was trying to saying in some thread. What is better stating a price then raising it because of market fluctuations or holding off on the price till it is more solid.
I have my name in for a 61 and 88, no commitment to keep them but should the price go up maybe just maybe the price stated will be honored, I have no need for two but someone else might need one. I'll just keep praying for the best. |
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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: Mon Apr 18, 2011 2:53 pm Post subject: |
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DaveBoulden wrote: | GregC wrote: |
why don't you simply ask your dealer ? I have no ability to reply to rumor.
I ordered my K88 and know exactly what my dealer is making. I am paying for shipping and the dealers margin is less than 10% of the retail price
( that I paid).
I am also a regular customer(for several years) and buy all my gear there.
( no, its not Sweetwater)
When a new board comes out, I think almost all dealers are trying to capture a good profit. I suspect there is a 3 month window until the
price gets down to a ' street price'.
So try waiting for 3 months. |
Greg, you're bordering on coming across with an "I'm alright, Jack" attitude about this. Quite plainly, we'd be as happy as you if we could get a K61 for $2999 plus 20% sales tax, making it just over £2200 in the UK, but they're already saying it's going to be at least £3000. How happy would you be if the K61 were available in Europe for £2200 but the exact same item cost you over $4000 in the US? |
I trust you have good negotiating skills.
I would be most happy to pay the high price, if I can sign up for UK's
universal health care. In the US, I pay $750 per month for medical/dental
for my girlfriend and I. Now $750 per month or $9000 per year is something to bitch about, given we have perfect health and zero claims.
_________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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thekeymaster Senior Member
Joined: 04 Jan 2006 Posts: 367 Location: Stoke-On-Trent,England
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Posted: Mon Apr 18, 2011 2:55 pm Post subject: |
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Its all about Korg I'm afraid.They dictate trade price/then RRP. It's then up to the retailer to decide how much mark up they wish to make from the sale.
All trade prices will be the same unless there is some kind of deal done with bigger retailers which order a large number of K's to move on and get a discount on say 25 K's ordered at once.
I'm all for profit making just as long as traders and manufacturer's dont take the P***. _________________ Neil.
Cake Muncher
Last edited by thekeymaster on Mon Apr 18, 2011 2:56 pm; edited 1 time in total |
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RKfan Senior Member
Joined: 15 Feb 2011 Posts: 402 Location: Cambridge, England
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Posted: Mon Apr 18, 2011 2:55 pm Post subject: |
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I see the Kronos as a replacement for the M3. Although sonically a very good machine - I think it is the "Home hobbyist keyboard" look that stopped people from buying it. If it has been black or grey instead of trying to be an i-korg they would have sold lots more (I would have bought one) - and Kronos may have never been released.
As Gordon Reid is saying in his article the Kronos brings no suprises (enhancements on 5 year old technology), maybe we were hoodwinked with the "Game has changed" strapline. The Kronos is good, very good, but it still needs to represent fantastic value and £3,000 for a 61 doesn't seem value to me. I think the "game changing" we should really be worried about is that if the Kronos fails - because no-one or not enough people bought it then pretty soon there will only be two Japanese manufacturers in business. And who would really want a Motif over a Kronos... (Not me...) |
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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: Mon Apr 18, 2011 3:00 pm Post subject: |
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thekeymaster wrote: | Its all about Korg I'm afraid.They dictate trade price. It's then up to the retailer to decide how much mark up they wish to make from the sale.
All trade prices will be the same unless there is some kind of deal done with bigger retailers which order a large number of K's to move on and get a discount on say 25 K's ordered at once.
I'm all for profit making just as long as traders and manufacturer's dont take the P***. |
I am a loyal Korg customer. And they are the smallest of the ' big 3 '.
And I want them to stay in business for a long time. In the US, there is no way they can 'dictate trade price'. All they can do is suggest.
Manufacturers, typically make a healthy profit margin, around 20-25%.
I have worked for a few mfgr's so that is my experience. If Korg is in this range, I support it. _________________ Kronos 88. MODX8
Achieve your musical dreams
https://soundcloud.com/user-898236994 |
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