Did Mesa Boogie raise all of their prices?

While I cannot answer your question directly, it seems to me a lot of manufacturers raised a lot of their prices. I have been watching a specific amp and the store raised the price, even on the floor model!

 

Well, IMO it is a bad time to raise prices... Sales are probably not that good right now...

 

I'm sure the companies took this into account when they did it. I'd imagine the cost to do business has increases about the same percentage as the increase over the last year and that profit margins are pretty much the same.

Mike

 

The reason prices go up (including the floor value) Is that the replacement value is higher. Therefore it has to be sold at a higher point to pay for its replacement model.

So much of bussiness is based on future investment that if you only look at the "now" It will never succeed.

 

Sorry, but current corporate america is based on "now" (more exactly "this quarter").
If things don't work out well this quarter, oops, shareholders get angry and management is changed.
That's is part of the current problematic situation we are in now. Companies looking to present good numbers for this quarter no matter what.

 

Yes but if your underselling yourself for overheads( power, rent, employees, replacement of stock etc.etc.) Your on a downwards spiral with a whole pile of debt at the bottom.

If you take things up a level the reason you have "this quarters target" is that you have to make more money than last year not to stagnate. In fact even if you break even with figures from the previous year your behind- due to factors such as inflation. In the short term "this quarter" Is important. In the long term its even more important for the continued growth of the company.

 

Here is what is happeing with price hikes.

Manufacturers have what are called fixed costs. These are cost that are there regardless of wether they sell product or not. Unfortunately the market is slow due to the eceonomy. Sales are down but the fixed costs are still there. As sales numbers fall, fixed costs go up as a percentage across the number of sales. When this happens the only way to stay in business is to raise prices.

Lets do an example. Say your building zizwheels at a cost of $10.00 each and the fixed cost amount to $9.00 each of that product at sales of 1,000 units a week. Now say sales fall to 500 units a week and fixed cost go to $13.50 each now add back that other dollar for non fixed cost which brings us to $14.50 per pice. Now when you are selling a product and you cost was $10.00 each and is now $14.50 each guess what you have to do.

Unfortunately with the current state of the economy you are going to see more of this. I just hope it dosnt become rampent.

 

Simple answer.....YES, they did.

 

It's even more disappointing that Mesa gear has always been price fixed.

 

It is all true (what is said above), just a freak of economics to have inflation during a recession!

 

Oh, I totally agree. I own several pieces of Mesa gear and absolutely love them. I'm just saying that they ARE relatively slightly more expensive than equivalent items of different manufacturers.
Yes, I know a sales manager that got fired several years ago for discounting Mesa gear. He sold my friend a brand new dual rectifier for $1000 when the price I belive was the standard $1399.
I guess Mesa was not too happy to say the least.

 

Let's see - we have a almost completely handbuilt amplifier, made right here in the U.S. and A., which has been setting standards and introducing new technologies (such as distorion, hello?) for over 30 years, which has been owned and run by a single man (Randall Smith) for it's entire existence, which hasn't outsourced any of it's manufacturing, and actually pays it's employees a living wage (the guy who puts the leather corners on the amps makes about $15 an hour), provides some of the best customer service on the planet... and you're complaining about their relatively low prices?

Most companies of their size and stature would be charging more for less. When it comes right down to it, even brand new they're a pretty good deal.

By the way, there are no stockholders in Mesa/Boogie. Randall Smith is the sole proprietor.

As for the fixed pricing, it seems totally fair. They guarantee a fair profit for the dealer, a decent price for the purchaser, and it removes cost variables from the equation when it comes to buying their stuff. You buy your amp based on tone and the quality of service you get, and that's it.

 

I agree with everything you said but one little thing...

As someone that lived in the Bay Area, $15 an hour is definitely NOT a living wage.

 

Ok, you got me there. But at least it's not minimum wage, sweatshop style labor. Most guys in the factory have been there for over 10 years, and still enjoy it.

 

I worked for a MB dealer for a year, and they actually sent a guy down to the store with prototypes for us to try...

MB will always get respect from me. I still want their gear to this day.