SVS and MO prices

[Quest88]

Hi guys, I think it's normal for us to want more discounts, but there is a limit.

 

The standard now is 10% discount, which does not apply to discounted items (e.g. B-stock). In recent times, we have gotten an additional 5% discount for people who were inconvenienced in the last MO - by having to wait many months for their order - but I believe this is a one off.

 

Just want to pass on some words from Erik, SVS:

 

Richard, just to make sure you understand so you can pass this along to your friends.  You guys are getting an unreal deal right now.  It costs us a significant amount of money to have our products certified for export use.  We normally have these costs partially defrayed by our dealers and when we sell through dealers the prices to the-consumer end up going up somewhat.  Right now we’re continuing sales to your area on an individual basis as we look for a dealer, simply because we want to keep up interest in the brand; so that when a dealer does come online there are already a lot of people that know just how good SVS products are.  We had a long debate about whether we’d keep even offering any discount for group buys like yours and even whether we’d start charging a premium on export products to individuals, but decided that in the long run taking a hit on orders like this would be a smart investment for our future dealer based distribution model.  I just wanted to make sure you understood that and didn’t feel like we were trying to nickel and dime you guys.  We truly do value you as customers. 

[petetherock]

Thanks for writing this, I feel for you bro, when bros try and go cheap...

I mean if you can afford spending more than 1k then try and squeeze you for a few more dollars... sigh.... its so much cheaper and less hassle than importing it yourself, thanks Quest

 

Oh for those trying to save a few dollars by transporting something like the PB 12+ or bigger home, thinking, your chiropractor bills are going to be bigger.... ;)

[Quest88]

I just got a shocking news from SVS.. read it yourself below. All future buyers please take note. I'll see what I can discuss with SVS about this matter, but don't get your hopes up.

 

I forgot to mention that moving forward after this group buy we’re going to have to reduce the group buy discount to 5% for any future groups buys.  We can’t sustain the discount on the higher costs to build the export models.  We had hoped to have a dealer in place by now and were willing to continue with the discounts as is to keep interest and buzz up but that hasn’t gelled yet and we can’t continue at the current rates.

[Quest88]

Read the papers today about the falling US$, and recalled this issue. Have a feeling SVS may be pressured by the falling dollar (export sets) and oil prices instead of any other issues, and thus may have introduced the lower discount, especially since they outsourced some manufacturing.

 

This is a far cry from 15% discount we got, say 3 years+ ago, but the US$ was around 1.65+?

 

Prices over the past few MOs have dropped simply because of the US$ movement. Exchange rates have dipped from around 1.55 to 1.45 to sub 1.4 now, just over the past 6 months. In theory, this would already give more than 5% discount extra if it continues to drop.

 

Conversely, oil prices have been going up, now hitting US$110 a barrel of crude. I think Bax just added US$5 and up (weight dependent) onto the standard pricing of each SVS sub to Singapore, in last month or so. Observed this from ajit's solo order, and from the pricing in our latest MO.

 

This year, we also experienced some fluctuations due to the new 7% GST.

 

So what's the net effect?

 

I did some calculations based on a PB10NSD, and found that even with a 5% discount, prices would remain about the same in S$, with a slight variable on shipping.

 

Over the years I've handled this, I've seen prices of the PB10NSD drop from S$900 or so to S$850~ and now S$820~.

 

I guess if we are prepared to pay roughly this amount for the sub, it still remains viable to continue. Just don't expect further price drops. :) Afterall, the prices of our other audio equipment doesn't seem to have dropped in Adelphi even with the US$ dip!

[Quest88]

Just for interest's sake, here are some takes on local pricing of US$ goods. Extracted from Straits Times:

 

But consumers will not get to pay less for food imported from the US. NTUC FairPrice and Sheng Siong supermarket both said that prices have not changed. A FairPrice spokesman said that rising transport costs due to higher oil prices and the increased costs of raw materials such as wheat, milk and coffee have offset the currency dip.

 

Some fashion retailers that The Sunday Times spoke to said it would take some time before consumers enjoyed savings since their stocks had been ordered and paid for months ago, when the US currency was stronger.