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Price Increases Possible

StrumFunky

New Member
...no US electronics component manufacturer can match the quality of the Chinese made parts at the same (i.e. low) cost of production. ...doesn't just apply to electronics, but steel, and aluminum (i.e. materials used to make the housings for our wonderful gear), as well. It costs to "make America great again", and you REALLY thought that it wouldn't be Americans (especially the ones who were duped into thinking they'd be helped during the last POTUS campaign, ironically) footing that bill?! Anyway, passing along the tariff cost to the consumer (i.e. you n' I) is the least of my concerns. It is my hope that the increased cost of components won't impact/hinder further research and development at Fractal Audio, or cause them to implement a reduction in force (i.e. cut jobs) in order to remain viable.
 

OldSnail

Inspired
A small increase of the price tag won’t maybe affect Fractal so much. But a significant increase will just turn a lot more people off meaning less sales and less incomes.

I’m not going to buy the Axe-Fx3 at any price. So yes, maybe I’ll stay with my 2XL+ and I’m sure I’m not alone.

So Fractal has to decide what is the best for its business, that means deciding to increase price tag or not, and if so, by how much before its business will be negatively impacted.
 

OldSnail

Inspired
Only the US waiting list is over.
How much the rest of the world weight in the Fractal sales ?
Just to put that view into the equation.
 

lqdsnddist

Axe-Master
I think most FAS users, particularly those who bought the III, represent a fairly ineleastic demand curve with regards to price.

In all honesty I would of bought the III if it was $3000 as soon as I did with it being $2499, and I think most people are the same. I mean heck, look at all the people who paid $3500 just to skip the waiting list.

If they have to raise the price say $100, I can’t see more than a few people changing their mind on buying. If your willing to spend $2500 your probably okay with spending $2600, right ? If $100 was a significant difference your probably not in a position to be spending $2499.

I think it’s a bad situation overall as FAS isnt making more profit, and customers are still likely going to have to pay more. I’d rather anything extra I pay go to Cliff getting a new boat than to some absurd govt trade war.

Axe III is still the best product on the market though, regardless of price. It will continue to sell quite well I’m sure. Plus side on the used market is sellers maybe be able to get what was list price if the new retail price is higher. Not that anyone would ever consider selling one though right ? Lol
 

Rick

Fractal Fanatic
So, I can now list mine as a classic, pre-tariff model? I can just see it...

I don't think our fearless forum leader was attempting to examine the intricacies of trade deficits, tariffs, and the dangers of losing the global reserve standard. I'm pretty sure it was just an advance notice that the price might have to increase because costs to his supplier are increasing. Not that he needs me to speak for him, but that is all he actually said.

I was pretty surprised the III came in at essentially the same cost as the II used to be. Yes, it's more money out of the pocket, and I get that. But the unit is still worth it by a wide margin.
 

randyvanmartini

Power User
I think most FAS users, particularly those who bought the III, represent a fairly ineleastic demand curve with regards to price.

In all honesty I would of bought the III if it was $3000 as soon as I did with it being $2499, and I think most people are the same. I mean heck, look at all the people who paid $3500 just to skip the waiting list.

If they have to raise the price say $100, I can’t see more than a few people changing their mind on buying. If your willing to spend $2500 your probably okay with spending $2600, right ? If $100 was a significant difference your probably not in a position to be spending $2499.

I think it’s a bad situation overall as FAS isnt making more profit, and customers are still likely going to have to pay more. I’d rather anything extra I pay go to Cliff getting a new boat than to some absurd govt trade war.

Axe III is still the best product on the market though, regardless of price. It will continue to sell quite well I’m sure. Plus side on the used market is sellers maybe be able to get what was list price if the new retail price is higher. Not that anyone would ever consider selling one though right ? Lol
Yep, as amazing as the III is, I don't think they'll have any problem selling them at whatever the price will be. I was surprised that the price was as low as it was to begin with. To me, that just shows that Fractal ain't in it just for the buck.
 

OldSnail

Inspired
I think most FAS users, particularly those who bought the III, represent a fairly ineleastic demand curve with regards to price.

In all honesty I would of bought the III if it was $3000 as soon as I did with it being $2499, and I think most people are the same. I mean heck, look at all the people who paid $3500 just to skip the waiting list.

If they have to raise the price say $100, I can’t see more than a few people changing their mind on buying. If your willing to spend $2500 your probably okay with spending $2600, right ? If $100 was a significant difference your probably not in a position to be spending $2499.

I think it’s a bad situation overall as FAS isnt making more profit, and customers are still likely going to have to pay more. I’d rather anything extra I pay go to Cliff getting a new boat than to some absurd govt trade war.

Axe III is still the best product on the market though, regardless of price. It will continue to sell quite well I’m sure. Plus side on the used market is sellers maybe be able to get what was list price if the new retail price is higher. Not that anyone would ever consider selling one though right ? Lol
For now, the Axe-Fx3 is 2.899 € in Europe.
That means 3.345 $.

And how many did not buy at 3.500 $ ? ;-)
 

lqdsnddist

Axe-Master
No, it'll make them more expensive to build in China and import. COMPARATIVELY cheaper, yes - but that's not the same as objectively cheaper.
I would guess that since so many of the parts would still be MIC, the result is the cost of parts would still become higher, so even with US labor and assembly, the overall materials cost would increase, which when combined with the cost of skilled US labor, would result in a net cost still higher than mostly foreign assembly. Kind of a no win situation as it stands.

Perhaps the solution is to mark each pallet of Axe III's as "humanitarian aid" and maybe they can make it to their destinations without any intervention LOL
 

Wolfenstein98k

Power User
I would guess that since so many of the parts would still be MIC, the result is the cost of parts would still become higher, so even with US labor and assembly, the overall materials cost would increase, which when combined with the cost of skilled US labor, would result in a net cost still higher than mostly foreign assembly. Kind of a no win situation as it stands
The part I've marked bold is the perfect encapsulation of the economics of tariffs. However in Trump's case he's made it clear they're a means not an ends, and whispers are that the Chinese Govt are going to give up the bluff soon... so we'll see how long it lasts. I would put money on it being a temporary state of trouble in order to secure a better long-term arrangement for trade.

Note: This is not a political discussion, just an opinion on trade arrangements to come and the ramifications for the Axe-Fx... no political debate :)
 

Tom Morris

Power User
Guess I will be the one to ask. 25% on Fractals cost per unit or 25% tacked on to the retail selling price your going to charge customers.
 

lqdsnddist

Axe-Master
Guess I will be the one to ask. 25% on Fractals cost per unit or 25% tacked on to the retail selling price your going to charge customers.
Cliff's post said "Just got word that our incoming shipments from China are being slapped with a 25% tariff. We'll have to pass some of that on to the customer if we can't get relief"

So it seems that 25% tariff is on them import, and they'll have to possibly pass "some" of that cost to customer in a higher retail price, so does not seem that retail price is going to be 25% higher
 

Randalljax

Fractal Fanatic
For the record it not just Fractal
Line6 has commented on this
Over at another forum and their stance is the same
If this continues or comes into effect
Their prices will be increased to offset the taxes as well
 

sebastos08

Experienced
25% is huge.
I suspect that Chinese suppliers are not so much in the real cause of this price increase. this rise may be due rather to the difficult and current trade between US and China. The price of components is perhaps their alibi? it would be interesting to ask a price on the same product by a European customer to know the real motivation of their rise.
 
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