[jsalk]

It has been quite a while since we have had any price increases.  Over the past year, we have seen some rather dramatic increases in the cost of most parts.  We have simply  absorbed these extra costs thus far.  But the time has come to make adjustments where required.

Some speakers will increase in price.  Others will not.  At this point, I am only certain of one series of speakers that will definitely increase in price - the SongSeries.  The cost of inductors and Hiquphon tweeters have increased by as much as 20% and we have switched to a slightly more costly woofer - the ER15. So a price adjustment is definitely in order.  I just don't know how much at this point.

Again, I am not sure which models will increase in price and which will not.  I also do not know at this point how much of an increase one should expect.

But I thought that I would post this so that people considering placing an order in the near future could get it in before new prices take effect on June 1st.

- Jim 

[gkinberg]

Thanks for the heads up Jim. Just out of curiosity, have some of these parts jumped up in price suddenly? If so, do you have a rational as to why?

Thanks, Garth

[Rocket]

Hi,

The US dollar isn't as strong as it was and has dropped in value over the past couple of years.  I guess this is a by product of the value of the US dollar compared with other currencies.

Way back in 2000 the aussie dollar was 50c to the US and now it is over 90c.

Regards

Rod

[sfox7076]

Looks like I need to make a decision sooner than later on the next pair of speakers to buy...

[Rocket]

Hi,

If you do your research there really isn't much to consider at all.  I bought my ht2's in 2008 and researched quite a bit on the internet and I couldn't find a speaker manufacturer that offered as much value as Jim.  If you live in the US you should have an opportunity to listen to pair prior to purchase.

Good luck with your decision.

Regards

Rod

[jsalk]

Thanks for the heads up Jim. Just out of curiosity, have some of these parts jumped up in price suddenly? If so, do you have a rational as to why?

Thanks, Garth

Garth -

There are several factors.  As Rocket alluded, the value of the dollar just isn't what it used to be.  Since many of the parts we purchase are manufactured in other countries, prices vary with each order depending on the exchange rate at the time.  Sometimes costs decrease, but on the whole, they have been rising over the past couple of years.

Another factor is the rise of China.  The additional demand for raw materials has been responsible for increased manufacturing costs.  These cost increases are passed on in the form of higher prices for manufactured goods.

It is not only parts costs that have gone up.  The cost of finishing materials has gone up almost 50% over the last two years.  That may not seem all that significant, but we go through thousands of dollars worth of finish (lacquer, thinner, etc.) each month. 

Weather and natural disasters can also impact the cost of materials.   The recent earthquake in Chile, for example, completely stopped the shipment of MDF and wood fiber used to make MDF.  When the US started protecting the habitat of the spotted owl, the US began importing MDF and wood fiber from Chile.  With Chile not in a position to supply the US market, MDF shortages began to appear.  Of course, without MDF, we are completely out of business.  So we had to scrounge and buy up all the MDF we could get our hands on.  Again, with the supply down, even though we were purchasing skids of MDF rather than sheets, the prices per sheet were higher than ever before.

As you can see, there are more factors involved here than even we realized. 

Last year, we built and shipped 35% more speakers than the prior year.  But our profits actually declined slightly.  Obviously, no business can survive with that formula.  We resisted raising prices hoping that as the economy improved, costs would go down a bit.  But that has not been the case and we simply can't continue absorbing additional costs.

That said, we have always placed great emphasis on delivering industry-leading value to our customers and this will not change.  We are very confident that our speakers will continue to be among the very best values in the audio world.

- Jim

[rollo]

 Price increases are part of the business. However a price increase for just the extra cost for the parts would be reasonable. the profit margin percentage on the whole will increase the overall price. For example if the addtional cost is say $200, just add on $200.
    Taking the addtional cost and adding it to manf. cost times profit percentage may just be too much.  Times are tough now as you know for most buyers. You have an excellent product don't blow it. Keep it simple. My 2 cents. Good luck.


charles

[jsalk]

Price increases are part of the business. However a price increase for just the extra cost for the parts would be reasonable. the profit margin percentage on the whole will increase the overall price. For example if the addtional cost is say $200, just add on $200.
    Taking the addtional cost and adding it to manf. cost times profit percentage may just be too much.  Times are tough now as you know for most buyers. You have an excellent product don't blow it. Keep it simple. My 2 cents. Good luck.


charles

Charles -

Thanks for the advice.  That is basically what we had planned to do.

- Jim

[davidrs]

- Future customers of Salk Sound (I am assuming current 'enjoyers' are in the know ):

Jim's heads-up and his response is respresentative of great citizenship by a business. Salk Sound's honesty and commitment to making sure their customers are fully informed is just a part of his successful buisness model.

Your ears and own experience with music can be the judge of whether and how you enjoy his products.

For those who also value a relationship and connection with a manufacturer, Jim delivers something truly special and rare.

- David.

 

[rollo]

Charles -

Thanks for the advice.  That is basically what we had planned to do.

- Jim

  Cool jim, kno that is a great service to your customers. keep up the good work. I tell ya if I did not own Pipedream speakers Salks would be "in da house".


charles

[gkinberg]

Thank you Jim for your thoughtful and detailed reply to my post. I can only imagine all of the complexities that go into running a business such as yours.

Garth

[Nuance]

Thank you for the heads up, Jim.  Your customer service and quality of product is invaluable to me, and the fact that you're still offering to take a hit until June proves I've always been right about you.  You're a man of great integrity, graciousness and are unmatched in this niche hobby.  I salute you!

[rahimlee54]

Any business that can have sales go up 1/3 but  profit go down slightly is due, especially in this economy.  Hopefully the price of the HT2 sealed doesn't go up as I need one  .  Thanks for the warning though.

[sfox7076]

I already own 6 Salk speakers (STRT, SC, SS, and a Rythmik Salk sub).  Now I need a smaller pair of speakers for my office.  Of course the other option is to sell my STRTs, buy HT2Ls and wait on the other speakers.  Or, and this is an odd idea, buy a SC with a ribbon tweeter and one regular and put the pair of centers in my office as bookshelves and add the ribbon version to the RTs.  So many choices.  All of this because I have an AVA Ultimate 70 and an AVA T-8 in a box waiting to breathe for a while.

[martyo]

All of this because I have an AVA Ultimate 70 and an AVA T-8 in a box waiting to breathe for a while.

HT2-TL. 

[Big Red Machine]

HT2-TL. 

That amp won't drive those HT2's properly.  I'd go with the standard song surround 2's for the office.  Give yourself a slap Marty.

[sfox7076]

Well, the HT-2Ls would be in the living room with the AVA Ultra 550 I have...

[gtommers]

Looks like the Songtower price hasn't changed yet. Anybody know what the new price is going to be?

[jsalk]

Looks like the Songtower price hasn't changed yet. Anybody know what the new price is going to be?

Well, what started as a simple price adjustment session turned out to be a complete re-build of our entire web site.  I am almost finished with that task, but need to make a few more decisions before I can post it.  In the mean time, the present prices will remain in effect until I get it all done. 

At present, no one knows what the new SongTower prices will be because I haven't finished sorting that out myself.

- Jim

[gtommers]

...we have switched to a slightly more costly woofer - the ER15

I noticed an update to the Songtower prices/specs today, but it still shows the  CA15RLY midwoofer. Is this just an oversight?