RM/x Price Increase

errivera · « **Reply #20 on:** 13 Feb 2004, 04:22 pm »

I really can't understand how each cabinet costs $4900 empty and the speakers cost $9800/pr with drivers. Is there something amiss here?

Forgive my skepticism, but it does not make sense business-wise. Even at the new price of $12000 how can one expect to factor in things like failed drivers that would be covered under warranty, etc?

JoshK · « **Reply #21 on:** 13 Feb 2004, 05:47 pm »

its called slim margins.

Brian Cheney · « **Reply #22 on:** 13 Feb 2004, 05:49 pm »

Business-wise it doesn't make sense. Our announced price of $9800 was a contributing factory in the RM/X winning the Best of CES award (with the Trinaural Processor); value is one of their criteria. So we will lose a substantial amount on each sale. I think if we announced a price increase from $9800 to $44,000 people would be quite a bit more upset with us than at present.

I should point out that many high-end companies routinely announce obscenely high prices completely unjustified by cost considerations, and few complain.

ekovalsky · « **Reply #23 on:** 13 Feb 2004, 06:24 pm »

Quote from: Brian Cheney

I should point out that many high-end companies routinely announce obscenely high prices completely unjustified by cost considerations, and few complain.

Quite the contrast, it gives them credibility. Wilson Audio is a great example.

Brian's article Money and the High End is a very good read, if you haven't seen it yet.

nathanm · « **Reply #24 on:** 13 Feb 2004, 06:33 pm »

I have a feeling if VMPS sold speakers in that price range there probably wouldn't be a big internet forum with 20 pages of posts about how great they are cause if they did there'd be like maybe six stock broker dudes in the world chatting with each other about their speakers, and how long would that last?

I'd be interested to know what the yearly sales figures are for speakers in that super high range. It can't be very much I'd guess.

Hell, just price your next speaker design at a million dollars Brian. No, make it a billion. I mean, why not? Some goofball will buy it and then you can retire! Sure, you won't get any awards for value, but some sucker will be proud that he owns the Best Speaker In The Whole Universe.

ABlakeG · « **Reply #25 on:** 13 Feb 2004, 07:22 pm »

Quote

I'd be interested to know what the yearly sales figures are for speakers in that super high range. It can't be very much I'd guess.

Well, if you believe another guy at another forum, who has a large amount of money (500K + retail) tied up in his system, wilson has sold (or taken orders for) 140 pair of the X-2 Alexandrias, which retail at 125K per pair. Now, suckers pay retail, so assuming you could get 20 off (not too uncommon) you would ONLY be looking at like 100K, might even get the tax taken off of that -- so say 100K out the door.

Blake

bubba966 · « **Reply #26 on:** 14 Feb 2004, 04:42 am »

We now return to our regularly sheduled programming...

Wasn't the $9,800 pricetag decided before the RM/X went into production? And it seems that it turned out to be much more difficult to make than was first realized. So I for one am not surprised that the price is going up. At least that's assuming that I'm not too far off base with my assumption...

errivera · « **Reply #27 on:** 15 Feb 2004, 03:55 am »

Brian writes:

Business-wise it doesn't make sense. Our announced price of $9800 was a contributing factory in the RM/X winning the Best of CES award (with the Trinaural Processor); value is one of their criteria. So we will lose a substantial amount on each sale. I think if we announced a price increase from $9800 to $44,000 people would be quite a bit more upset with us than at present.

I should point out that many high-end companies routinely announce obscenely high prices completely unjustified by cost considerations, and few complain.
_______________________________________ _________

I agree that business-wise it doesn't make sense. However, if winning the Best of CES was the intention, then it makes perfect sense. I guess I'm just questioning the figures. I can't believe that increasing the price to $12000 (+$2200) will make up for the losses, and drivers that compliment the speaker, and shipping, minus whatever profit the local dealer must make. You must have been really taking a beating with these speakers. At $12000 you expect to make up the difference or come out ahead?

I believe that every business have the right to make a profit. How much of a profit is up to the individual business. Are there overpriced speakers out there? Yes!!! Let the buyer beware.

I just can't figure the number though Brian. No offense.