[Bill Baker]

With all the recent talk about the economical situation and the value of the US dollar effecting the audio industry, Response Audio is taking on a different approach. As many of you know, the cost of doing business is increasing on a daily basis. This wouldn't be so bad if Response Audio was a basement company with no overhead. Unfortunately (or fortunately depending on how you look at it) we have a large commercial facility to maintain. Being in New York doesn't help either as this is an expensive state to do business in.

For the past several months, we have been looking at the numbers to see where and how much we would have to raise our pricing to reflect cost increase. Then we started to think about this from a different angle. If we increase our prices, it would only make things that much more difficult for our customers and effect our volume. So rather than increase our prices to reflect our increase in cost, we are going to absorb these cost and keep our prices where they are. Unless things change drastically.

 This approach not only helps keep our US sales flowing but also helps us in our growth in international sales which has been growing considerably over the past few years. With the US dollar where it is right now, we are able to obtain a lot more international traffic.

 These changes will not effect the quality of our products in any way. We are NOT going to skimp in this area simply to save on cost. Many manufacturers these days are cutting back on the quality of their products and keeping the prices the same, if not raising them. Not us.

 We are now working in conjunction with a few Audio Circle manufactures which is proving to be beneficial to all involved including the end users. Working with others in the industry is much easier and better for the consumer than trying to compete with them. We hope to expand this throughout the year as well.

 There will be a few products that will maintain special pricing for AC members. The Circle has been very good to us this past year and we want to show our gratitude.

 There are a few new and exciting products that will be introduced in the forcoming months as well. More information to come.

 That's it for now. Your thoughts and responses are welcome.

[carusoracer]

 

I like the philosophy and business mantra..Good luck in 2008 and the future.

[MaxCast]

Best wishes and keep up the good work Bill !!!!!

                         

[RAW]

Look forward to it Bill

[pbrstreetgang]

Excellent Bill, All ACers should support and point out AC supporting vendors- the level and value of products have never been better and we have a wealth of talented designers and vendors. I personally feel things are not going to be as bad as some are suggesting but Im a novice so dont bet the farm on my advice but I think things are going to work out.

[Bill Baker]

Thanks everyone for your kind words.

I personally feel things are not going to be as bad as some are suggesting but Im a novice so dont bet the farm on my advice but I think things are going to work out.

 That is a great attitude and falls along the lines of how I am looking at it as well. I am not going to worry about all the negative talk about the economy but I will surely move forward with more care and attention to the world around me. Noting is taken for granted.

 I feel that it is those who will worry too much and make premature assumptions and hasty decisions that will cause a panic. People still have to enjoy their lives and move forward. Now we will just have to do it more carefully.

[jgb0194]

Bill,

Over the past four years I've come to know you not just as a talented audio manufacturer, but as a friend. Who you are as much as your great craftsmanship have cemented my loyalty to your company. Your latest products, the Audio Note Kits customization and assembly, are the best bargain in high end audio today.

People, the L3 preamp Bill recently built for me is indescribably good. I truly believe no other preamp currently made at any price betters it sonically in any appreciable way. I have owned some good ones - nothing comes close.

You and every other earnest small business owner has my prayers in these difficult economic times. As you know, we'll be collaborating on some extreme crossovers in the spring. I'll surely touch base before then.

John

[KCI-JohnP]

Bill,

My hat is off to you and Response Audio, that is the same approach I am struggling to take as well. Cost of some of my components has increased by
almost 50%(gold)yet I am trying my best to keep my prices the same. I too believe that this is temporary and things will turn around for the economy, it's just a matter of hanging in there and waiting it thru. Anyway, good to see vendors such as yourself out there taking the high road!

Sincerely,
John

[woodsyi]

Nice, Bill. 

I always make it a point to keep up with your offers.  Good values.

[Goosepond]

I'll throw in my $.02 even if it's not worth that. 

First, I'm not an audiophile even though I do enjoy reading all the audiophile stuff around the Internet but on the Circles in  particular. I've decided to upgrade my system and I'm trying to rule out both the junk and the hype. And that's where the user feedback around here is valuable.

You expect the makers of products to toot their own horn, some do this better than others. But when you see the comments of people who put their faith and their dollars where their mouth is, that helps a lot.

A couple of months ago, I never heard of SP Tech or Response Audio and others. But I've got an order for Bob's Timepiece Mini's and am seriously considering one of Bill's fine modded products to power them.

I might add that another thing I enjoy around here is the cross participation of Circle owners
in other's Circles. If you pay attention, you start to see who the real players are and who knows their stuff. I might also add, that everyone around here are not only experts in their field but are also passionate about what they do.

Gene

[KCI-JohnP]

am seriously considering one of Bill's fine modded products to power them.

Gene,
I don't personally know Bill but I can tell you that a friend recently bought one of his modded tube amps and it is VERY impressive,
especially considering the price. The build/work quality is superb as well as is the sound quality. I know that when the time comes
I'll be looking his way for tube amps. Best of luck to you on your search.

Regards,
John

[woodsyi]

I'll throw in my $.02 even if it's not worth that. 

First, I'm not an audiophile even though I do enjoy reading all the audiophile stuff around the Internet but on the Circles in  particular. I've decided to upgrade my system and I'm trying to rule out both the junk and the hype. And that's where the user feedback around here is valuable.

You expect the makers of products to toot their own horn, some do this better than others. But when you see the comments of people who put their faith and their dollars where their mouth is, that helps a lot.

A couple of months ago, I never heard of SP Tech or Response Audio and others. But I've got an order for Bob's Timepiece Mini's and am seriously considering one of Bill's fine modded products to power them.

I might add that another thing I enjoy around here is the cross participation of Circle owners
in other's Circles. If you pay attention, you start to see who the real players are and who knows their stuff. I might also add, that everyone around here are not only experts in their field but are also passionate about what they do.

Gene

Looks like you are falling into audiophiledom regardless of your disclaimer. Welcome.  It's OK. 

[JoshK]

First off, even though I've never had the opportunity to be a customer, I've always viewed Response as one of the good guys in the audio business.  This action is another point in that direction.

Unfortunately, I think your move to taken the hit on your margin is the way many/most small business (and businesses in general) will have to deal with increasing costs whether they do so willingly or not.  This is just my view, but it is typically the way things work in aggregate during these times since the consumer is likely to be a bit soft (in aggregate) so your pricing power isn't really there in order to pass on the costs.  This may or may not apply specifically to your business, but this is the general picture. 

Now you as a small manufacturer do have a part to play though and can affect the overall picture in your micro economy.  You can start to push back on some of the obscene inflation in boutique parts.  You among many have leverage to do so.  The inflation seen in the last 5 years or so on boutique caps, etc is only matched by the inflation in the health care sector.   Ultimately something has to give and when the demand starts to soften, usually the most egregious benefitters of good times see the largest impact.  I think you should see room to negotiate some of your input costs over the coming months. 

My $.02,
Josh

[Bill Baker]

This thread has taken a different path from what I expected or intended. I mean this in a positive way as it is the feedback and comments that are being mentioned that secure my reasoning to stay with Audio Circle and offer better incentives to it's members.

I might add that another thing I enjoy around here is the cross participation of Circle owners in others Circles. If you pay attention, you start to see who the real players are and who knows their stuff. I might also add, that everyone around here are not only experts in their field but are also passionate about what they do.

 As mentioned previously, life is much easier when you work with others rather than against. Yes, there are a lot of great industry participants here at AC and many of them are a pleasure to work with. Working with them feels more like a family atmosphere rather than dull business dealings. A lot of the participants here at AC consider themselves friends rather than competitors.

You expect the makers of products to toot their own horn, some do this better than others. But when you see the comments of people who put their faith and their dollars where their mouth is, that helps a lot

.

 I would love to be able to toot my own horn but I am one who realizes there are a lot of great products out there and I can only offer a small fraction of products. I can talk to you all day about my products and I will admit I will be biased. I know what I like, I have my own ides and theories and my products reflect them. I would much rather see my customers talk about them from an unbiased standpoint. This is what provides other with an idea of what to expect. Many people will read consumer feedback on any given product and come to the conclusion that it isn't for them. Less buyer's remorse. I have always believed in "Let the product sell itself".

Now you as a small manufacturer do have a part to play though and can affect the overall picture in your micro economy.  You can start to push back on some of the obscene inflation in boutique parts.....

.

 I agree but it is much easier said than done. I personally don't have any control on the pricing of these parts. I have to pay what the manufacturer ask. I will tell you that I have and still do absorb a lot more of this cost than many might realize. Almost 100% of every part I used in my products has gone up in the past several months. Some more than others and some a ridiculous amount. If I adjusted my prices to reflect all these increases......well, you get the idea.

 I will maintain my prices for a long as humanly possible but I do have a business to keep going and a family to feed. I do love what I do but like any business owner, I do have to make some money along the way. My goal is simply to remain fair and continue to provide good value.

 One last aspect that is becoming more important on a daily basis is customer service. I think this is where the small businesses, such as those on AC strive. People are starting to get tired of automated phone messages and lousy internet service. They want to be able to call a company and actually speak to a human being.....and not one in India.

 A reputation is a horrible thing to waste and I for one will not sacrifice mine for a few dollars.
It's all we have these days.

[doug s.]

...First, I'm not an audiophile even though I do enjoy reading all the audiophile stuff around the Internet but on the Circles in  particular. I've decided to upgrade my system and I'm trying to rule out both the junk and the hype. And that's where the user feedback around here is valuable...   

...A couple of months ago, I never heard of SP Tech or Response Audio and others. But I've got an order for Bob's Timepiece Mini's and am seriously considering one of Bill's fine modded products to power them....

not an audiophile?!?  you're in denial big time!   

enjoy it!   

doug s.

[billc]

A reputation is a horrible thing to waste and I for one will not sacrifice mine for a few dollars.

Bill,

In the many years I have known you, the one thing that always alsolutely amazes me is the honorable and honest reputation you have among the audiophiles I have met, and those that post here. 

I hasten to add that it amazes me not because you don't deserve it, and not that you don't work hard to earn a reputation of excellence and trustworthiness -- but, over the years it is so easy to encounter a few undeserved and relentless critics, or to have minor glitches exaggerate into more than they really are, or to lose the excitement.  But I have not seen any of this happen to you, and your reputation for quality grows.

It is exactly the kind of gesture you made in this thread that maintains my respect for your approach and attitude. 

Bill C.

[Bill Baker]

but, over the years it is so easy to encounter a few undeserved and relentless critics, or to have minor glitches exaggerate into more than they really are, or to lose the excitement.  But I have not seen any of this happen to you, and your reputation for quality grows.

 These types of issues are unavoidable with any business. The difference is in how one handles them should they arise. It is impossible to please everyone in regard to product offering which is something I have no control over. What I can control is customer service. There have been many times when someone has called me up to order a custom product and after speaking with them for a while, advising them against it as I didn't think it would offer what they were looking for. I would rather send a customer to another manufacturer or dealer that I know will take care of them and provide them with a product that will fit their needs rather than take their money only to have them be unhappy with the purchase down the road. Buyer's remorse is how bad publicity get's started. Even if it is an exceptional product, many will trash it because it is not for them rather than simply stating they liked the product but it wasn't their cup of tea.