Sound Devices
- Thread starter rgolchuk
- Start date
There are various reasons why this happens. Sometimes a price will be set, and then it is realized that the price is too low, and needs to be raised. Sometimes a supplier might raise the price of a component, therefore raising the total cost of the end product. Sometimes government regulation causes a manufacturer to pay lots of money just to operate, and that cost gets passed along to the end user. Sometimes the cost of doing business just goes up. It happens all the time. As manufacturers, we hate to raise prices, but we can't lose money, either.
Simply Cinema
Active member
Dave, recently got one of your Ktek 152CCR boom poles, and we love it. Great build, super lightweight, and very long for a boom.
The market dictates, When the dollar is on its knees, Sound Device which supplies many registered end users companies abroad sees a big increase in orders internationally (those companies are tax exempted). The international distributors record decreases in sales.
Sound Device then gets complain from the international distributors that their product is circulating abroad at half the price of what their distributors are quoting. This inturn prompts Sound Device to adjust the local prices accordingly to even out the price differences. At the moment, it is a field day in Europe for end users who can directly import from USA.
Sound Device then gets complain from the international distributors that their product is circulating abroad at half the price of what their distributors are quoting. This inturn prompts Sound Device to adjust the local prices accordingly to even out the price differences. At the moment, it is a field day in Europe for end users who can directly import from USA.
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I've been seeing this. Every now and again I'll get an e-mail from an international K-Tek user that needs some service, and they tell me they purchased their boom pole from the states. Just shipping over seas is really expensive, and I try to encourage my international dealers to order larger quantities for stock. You can get more product in and pay less in shipping than if you break it up into smaller orders every few weeks. Plus there is VAT. I've been shocked at some of the prices I've seen gear sell for over seas.
John Willett
Veteran
It all depends on how a manufacturer treats it's home market.
An international distributor will need a discount of at least 50% off the end-user price, preferably 60%, as he needs to sell on to a dealer to sell on to an end user.
There is also shipping, Customs Duty and VAT for a European distributor.
If the US companies discount is too small, then the distributor will have to increase the selling price in their own country to make a profit.
This can then encourage the end-user to buy direct from the USA, but will depress overseas sales and prospective customers will often buy from another company.
A good manufacturer will set an end-user price that will enable their international distributors to make a reasonable margin.
In the home country the manufacturer makes extra margin, of course - but if the price is correctly set the smaller margin on exported goods will be compensated by the extra margin on home goods so that the overall margin is reasonable.
If a manufacturer does not allow for the above it makes things very difficult.