[Spatial Audio]

I can’t answer for Clayton but can only speculate.  He is a “made to order” speaker manufacturer. If he announced ahead of time then the glut of orders could strain his operations.  Also you will have people pleading with him that they placed the order 2 hours after the price increase so could he please honor the old price.  Some manufacturers do announce price increases ahead of time but they usually do have  ready inventory that has been manufactured under prior overhead costs.  Therefore they can announce a price increase. Claytons business model is not like that at all
Those who have interacted with him know that he is not sitting in his chair at night thinking of ways to screw his customers.  He’s the complete opposite. I’m old enough be able to judge character and he’s an upstanding person and a true gentleman

 Bottom line- I was told once that you should expect to get 2/3 features of a product - price, quality , customer service.
With Spatial Audio you get all 3 even with the price increase

Jprod - we try to provide a fair price, high quality and great customer service

Many points and observations made in the postings above are good, I think. Jprod makes an important point that if you announce ahead of time, that blow back can still occur. I think Aniwolfe's suggestion of using a newsletter to announce news like products, or price changes is great and I should have done that first.

The new X5 pricing of $6950 is still much lower than if we followed a standard margin mark up approach. The cost of the drivers alone is way higher than what you would normally find in this price range. Our OEM price of the AMT with rear Cardiod lens is almost $500 each. The UltraLam baffle material is about 10 times more expensive than MDF and requires a lot more high-skilled labor to finish as well. The labor cost is one the areas we underestimated our costs initially.  Even at $25K, it's hard to find a speaker that is better than the X5 from what I've seen at shows.

Clayton
Spatial Audio Lab

[RonN5]

For those lamenting price increases and how they may be announced, would you rather that Clayton just hold the price and make a behind the scenes move to reduce costs by cheapening the parts and the process?

Price increases are a tough decision and can be risky...if volume drops 10% it’s probably ok... but if it drops 50%... disaster.  Historically, great products can withstand price increases... ask Apple.

Hopefully, the market loves the Spatial products, appreciates the sound and feels that even after the increase, these are still the speakers they want to own.

[schw06]

   At $8,500 the X-3 still represents off the charts value. Yes it was even better at $7,500 and that was the benefit early adopters got by taking the calculated risk. Well there is no risk any longer as the consensus is in and they’re incredible and the product is worth every penny at $8,500. They absolutely bury the Vandersteen Quatro CT’s I had recently at half the price. 3x the performance at half the price. Yes it really hurts to write the check but you will be happy every day thereafter as opposed to getting a “great deal” on a pair of speakers where you’re excited the day you buy them and regret every day thereafter. Honestly I did not believe this level of performance was even possible under $30,000.
   When you buy you aren’t talking to a dealer, local distributor, or a 19 year old salesman working on commission. You are buying from the creator. You’re not paying distributor or dealer mark up. You aren’t paying local sales tax. You are buying American from a truly honest gentleman and remarkably talented designer. I’m enjoying my system so much as each item other than turntable was purchased directly from the creator here in North America (Clayton Shaw, Dennis Had, Gary Dews, Don Sachs, Tommy O’Brien, Captain Payne). They’re remarkable value at $8,500. Pull out your check book before Clayton comes to his senses and charges $25,000 for them.
David

[Glady86]

Anyone ever compare or hear a GR Research open baffle model? I was almost ready to order a pair of Spatial X5. But also been reading about the GR Reaserch NX-Otica. Its a kit but affordable.

[JTF]

I haven't heard the Oticas, but my understanding is that they can roll off earlier depending on the room. So you'll want to factor in the cost of subs if comparing based on price.

[Bemopti123]

While I understand the concern that some prices have increased...There is always the choice of not opting to purchase such product.  The cost value ratio varies according to people who are contemplating such purchase, as things go now, it is sad that today's $$ are not even remotely the same as the $$ of a couple of years ago.   

Hi end products have a certain cache and mark up that comes from them...but in the case of Spatial Audio and its direct to consumer marketing, I certainly believe that Mr Shaw does not spend undue amounts of $$$ in glossy audio magazine ads.  I would like to believe that the cost increases are directly correlated with direct material improvements as he has already stated. 

While I am not in the market for new speakers, I have always been interested in Spatial speakers ever since they came into market, specially the introductory level products, which I felt are bargain priced.  Perhaps someday.   

[Glady86]

I have two subs, though they aren't open baffle types. The GR Research open baffle sub kits aren't real expensive either. Still be quite a bit cheaper option.

[targa02]

I am fortunate enough to have the Lumina 2’s.  I am also fortunate to have owned a number of other great speakers over the last 10+ years. From my perspective Spatial/Clayton offers unbelievable VALUE.  I am listening to my Luminas as I am typing and I am having to pinch myself to make sure I am awake as they sound so good.

I have traded through a lot of audio gear over the last 10 years (ask my wife and friends). But the Luminas are here for a very long time.

[radarnyc]

Anyone ever compare or hear a GR Research open baffle model? I was almost ready to order a pair of Spatial X5. But also been reading about the GR Reaserch NX-Otica. Its a kit but affordable.

Glady86 - I'm totally unaffiliated with Spatial but it's not really appropriate to reference a competitor's products on a vendor sponsored board (i.e. this Spatial Audio board). You're not the first to do so by any means so my opinion is not universal! I think I've heard Clayton speak of Danny so maybe he's totally cool with it.

[RonN5]

I feel compelled to say one more thing about pricing.  As many people know, selling price minus speaker cost is not profit.  There is this little thing called fixed cost and until the fixed cost is covered, the business owner doesn't earn a wage and doesn't make a profit.

For a company like Spatial, I'm pretty sure that fixed cost includes lots of things such as rentals, insurance, taxes, returns, wages of very skilled employees, maybe even wages of some family members, future product development, some promotion and advertising...and it wouldn't be a shock if all these things easily add up to more than $25k per month.

What this probably means is that Clayton probably has to sell 20-30 pairs of speakers per month before he can pay himself anything, let alone have real bankable profit.

One thing I've learned over the years...I want the people that sell me products, especially expensive products, to be very profitable because I want them to still be in business down the road when I need them...and I know that the longer they stay in business, the more valuable the products I bought from them become if I ever to decide to resell.

Being a small business owner is hard.  Raising prices is sometimes even harder...but if this price increase means that Spatial is still here selling an even better product in five years, then all I can say is +1 for the increase.

[Photon46]

I feel compelled to say one more thing about pricing.  As many people know, selling price minus speaker cost is not profit.  There is this little thing called fixed cost and until the fixed cost is covered, the business owner doesn't earn a wage and doesn't make a profit.

For a company like Spatial, I'm pretty sure that fixed cost includes lots of things such as rentals, insurance, taxes, returns, wages of very skilled employees, maybe even wages of some family members, future product development, some promotion and advertising...and it wouldn't be a shock if all these things easily add up to more than $25k per month.

What this probably means is that Clayton probably has to sell 20-30 pairs of speakers per month before he can pay himself anything, let alone have real bankable profit.

One thing I've learned over the years...I want the people that sell me products, especially expensive products, to be very profitable because I want them to still be in business down the road when I need them...and I know that the longer they stay in business, the more valuable the products I bought from them become if I ever to decide to resell.

Being a small business owner is hard.  Raising prices is sometimes even harder...but if this price increase means that Spatial is still here selling an even better product in five years, then all I can say is +1 for the increase.

Well said, couldn't agree more. I learned long ago that biasing one's audio purchase decisions towards "high value" products with a high price/performance ratio was often a recipe for being left stranded with a product that had no support after the manufacturer went belly up because they weren't making enough profit to survive.

[Bemopti123]

Well said, couldn't agree more. I learned long ago that biasing one's audio purchase decisions towards "high value" products with a high price/performance ratio was often a recipe for being left stranded with a product that had no support after the manufacturer went belly up because they weren't making enough profit to survive.

But another angle you can interpret the idea of best bang for the buck, it is that is a throw away product with no support beyond the warranty.  While speakers are not as dependent on parts if they go bad, and IF they go bad, I have seen plenty of expensive electronic that are beyond repair, once the manufacturers cease to exist.

Simplicity with a few but as robust parts as possible should be rule when making products but that is not, what most of this market, have become. 

[classical music lover]

I have communicated with Clayton a few times with my interests in the X series.  Clayton has always replied and been very respectful with all my inquiries.  I am very convinced that even with the price increase the X series represents a incredible value in the high end industry.  I will be ordering from Clayton soon knowing that I am paying for his knowledge and american quality that I can be pround of.

[Jean-Paul]

Well, the fact that the Sapphires maintained their old price while only the X-series rose suggests it's not price-gouging. I must say, having bought probably the last M4 Turbo S sold in Australia (apparently Spatial Audio is only selling direct here from now on), it offers by far the best value for money I've found in any speaker I've encountered. In fact, it restored my faith in audio, which seems to have gone mad with prices reaching truly stratospheric levels. Which is why my focus has turned to pro audio where value for money is still one of the prime desiderata. But the M4 Turbo S (which I bought only because of my long-held fascination with the idea of open-baffle dynamic speakers) has dramatically altered my ideas of what speaker design is capable of. I own a very expensive set of mastering monitors as well as a Stereophile Class A rated monitor, and I'm not kidding that in most respects the Spatial Audio make both of them sound veiled and murky. When I listen to the M4 I'm struggling to believe what I'm hearing because it sounds so vivid and alive I'm wondering if there's some trick being played on me. Is the frequency response doctored to make it sound so present? I haven't had them for long enough to decide for sure but right now I'm going through my rather large CD collection trying to catch them out. I can see some listeners thinking they're a bit TOO MUCH. Many audiophiles I know don't seem to like really explicit sound like the M4 provides. If a recording is thin and shouty through other speakers it's doubly so through the Spatials. But then you play a warm recording and the M4 completely changes. I don't like hyperbole but I run out of superlatives when I talk about these. They are that good and I think Clayton deserves to become a rich man for designing masterpieces like these.

[gme109]

   At $8,500 the X-3 still represents off the charts value. Yes it was even better at $7,500 and that was the benefit early adopters got by taking the calculated risk. Well there is no risk any longer as the consensus is in and they’re incredible and the product is worth every penny at $8,500. They absolutely bury the Vandersteen Quatro CT’s I had recently at half the price. 3x the performance at half the price. Yes it really hurts to write the check but you will be happy every day thereafter as opposed to getting a “great deal” on a pair of speakers where you’re excited the day you buy them and regret every day thereafter. Honestly I did not believe this level of performance was even possible under $30,000.
   When you buy you aren’t talking to a dealer, local distributor, or a 19 year old salesman working on commission. You are buying from the creator. You’re not paying distributor or dealer mark up. You aren’t paying local sales tax. You are buying American from a truly honest gentleman and remarkably talented designer. I’m enjoying my system so much as each item other than turntable was purchased directly from the creator here in North America (Clayton Shaw, Dennis Had, Gary Dews, Don Sachs, Tommy O’Brien, Captain Payne). They’re remarkable value at $8,500. Pull out your check book before Clayton comes to his senses and charges $25,000 for them.
David

It appears after looking at the website, that Spatial Audio has demonstration locations throughout the U.S. Do you know if these are dealers or just locations to demo the product? Then if someone is interested in purchasing, they would buy direct from Spatial Audio.

[geerock]

Let me add my 2 cents to this.....
Let's look at what Clayton Shaw has done with OB design over the years.  As some of you know, Clayton was the designer and owner of Emerald Physics, and they were a very fine speaker.  He sold that company to Underwood Hifi in 2009 and those speakers have not had an upgrade to them in all this time by the new owners.  In fact, it is said that some major parts have been changed out to include cheaper Asian made knockoffs.  The upper end of this line sell for 9 and 10 thousand dollars, plus extra for DSP and certain finishes; and do not have the quality of parts of neither the M Sapphire or X series.  Clayton formed Spatial Audio and has gone through 3 generations of research, design, and development since 2009 with the X series just coming into being mid 2019.  This is the difference between Underwood and Spatial.  One is a marketing firm and the other is a designer and inventor who is just looking to develop as fine a speaker as he can that will appeal to as broad a base of customers that will enjoy his designs as much as he does.  This guy isn't in this business to get rich.  He's in it because he loves what he does.  These speakers use the finest parts available and sell for thousands less than the designs he invented over 11 years ago.  I'm happy to own a pair.

[loki7177]

I am an M3 Sapphire owner since March 2020.  Another speaker I auditioned during the process were the Focal Sopra 2's.  Those went from $15,000 to $20,000 in March.  Now that is a big price increase.  The M3S sound way better than the Focals.  I demoed the Focals at two different dealers and also at home so I am relatively familiar with them. 

[Audiosaurusrex]

I am also an owner of the M3 Sapphires since the beginning of 2020. I upgraded from Vandersteen 2ces and consider my purchase a real upgrade. I purchased them before the initial increase for $4350 delivered. A few things I have to say regarding this topic. I have always felt that if you truly enjoy and love something for the life’s experience the cost is relative. I’m listening to Daniel Lanois Acadie as I’m writing this and it is an amazing experience worth every penny I spent and more! Visually they are stunning to look at but more so they reveal so much more of the music. Clayton has demonstrated his expertise in engineering and designing these speakers. Additionally his business model I admire because he constantly improves his technology. While I wonder if his speakers will hold their value, I thought the same of my 30 year old Vandys and they sold no problem for their worth. The point I’m trying to make is... why exactly are you in this hobby? If it’s for musical excellence then there will always be a cost, just like anything else in life. Love it and thank you Clayton!

[gme109]

Question, is Spatial Audio still selling direct? From the website it appears there are a few dealers, so what exactly is the deal, can one still buy direct from the manufacturer?

[Wind Chaser]

My understanding is you can buy them direct if there isn't a dealer in your area.