Korg Forums

ScoobyDoo555 · Posted: Mon Apr 18, 2011 6:58 pm Post subject:

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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.

DaveBoulden · Posted: Mon Apr 18, 2011 7:09 pm Post subject:

GregC · Posted: Mon Apr 18, 2011 7:23 pm Post subject:

DaveBoulden · Posted: Mon Apr 18, 2011 8:09 pm Post subject:

I would have thought there is a very similar percentage of the population in Europe who are synth playing musicians as there in the US.

zahush76 · Junior Member Joined: 09 Mar 2011 Posts: 98

GregC · Posted: Tue Apr 19, 2011 1:53 pm Post subject:

RKfan · Posted: Tue Apr 19, 2011 3:19 pm Post subject:

How about price elasticity and demand - I bet someone at Korg has done that. I have just done a little calculation using an Ed factor of -1.7 (similar to -1.5 for pleasure flying elasticity and a little more for US to EU emotional factor, look it up on Wikipedia - you can also download an Excel Macro to do the calcs from Microsoft). I then had a think about the relative numbers of K61s you would expect people to buy if you change the prices.

If the US price was $3,000 and the EU price was $3,600 (UK £2,250) then you might expect to sell 73% the number of units compared with the US, and get 87% revenues. If you then put the price up to £3,000 ($4,800) then you would only expect to sell 43% the number of US units, and 70% revenues (i.e. still profitable but ripping off some people and pissing off many more) - OK so these are rough calculations with quite a few assumptions but the basic message is as follows:

If you make the product too expensive dont expect too many sales, if you have a 60% price differential you will sell less than half the number of units you could have!

Alternatively sell it at an acceptable price and have double the number of fans (and an RKfan too).

GregC · Posted: Tue Apr 19, 2011 3:48 pm Post subject:

RKfan · Posted: Tue Apr 19, 2011 3:59 pm Post subject:

I can make it dead simple for Korg.

At £2,250 (purchase price) RRP can be higher - I will buy a K61
At £2,400 - I will think about it
At £2,500 - I will probably not buy
At £3,000 - I will laugh nervously then buy something else - the sales guy will get some of my money (so he'll be laughing too) - Korg will not.

DaveBoulden · Posted: Tue Apr 19, 2011 4:49 pm Post subject:

Zeroesque · Posted: Tue Apr 19, 2011 5:09 pm Post subject:

peter_schwartz · Full Member Joined: 14 Jan 2011 Posts: 206

Everyone wants to save a buck, pound, farthing, or Euro. That's understandable. It's human nature. But as far as European prices go compared with US prices...

Last time I checked, Japan is much further away from England/UK than it is the US. So transport of Kronii (and other Japanese goods) is going to cost more to get to you than in the US. I offer that as only the tip of the iceberg of probable reasons as to why there's sometimes a vast difference in the cost of goods in one country versus another. I'm sure the other reasons behind the price difference have less to do with price gouging and more to do with economic viability. That's my 2-farthing's worth.

sani · Posted: Wed Apr 20, 2011 6:36 am Post subject:

@peter_schwartz

Your argument seems very reasonable. But Australia on the other side doesn't seem to be much further away from Japan compared to the US. And the prices there in AU seems even more ridiculous.

ScoobyDoo555 · Posted: Wed Apr 20, 2011 8:15 am Post subject:

I totally get your reasoning Greg Smile

and FWIW, my eyes don't glaze over, as it is all too easy for people to forget that regardless of our feelings for Korg (or any other manufacturer), they're actually in the business of making money (shock/horror!!! Laughing

)

My take is that with exception to the vehicle in which the technology's housed and the resulting interface, the technology is relatively established (a subtle way of putting it!)....

So the price could reflect this - in the product range, the next "best" thing is the M3, which is a good £1000 cheaper...... and based on less of the same technology.....
We'll see what happens when the price is officially announced eh?
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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.

RKfan · Posted: Wed Apr 20, 2011 8:25 am Post subject: