Email from Barefaced

[jnewmark]

Not sure this is the right forum, so please move if needed. Got this email from Barefaced today, prices going up. I'm no business mind, but, according to email, they are " selling plenty " of cabs, can't keep up, but prices need to go up because cash reserves are down. Someone want to dummy this down for me? Here it is:

Hello everyone - and sorry about the bad news, So Barefaced has been going for 16 years now and we've continued to be an independent business, owned by me, designing, building and selling everything direct from our factory in a small business unit in Brighton UK. And our customers thankfully seem to love what we do, and our consultative way of selling, so you get our expertise (it's usually me answering the emails but for guitar stuff I often end up chatting to the proper guitarists here - bass advice I can do totally solo) to make sure that the money you spend is on THE BEST CAB for your needs. If you've ever watched Dragon's Den (Shark Tank in the USA?) you may have come across the term "lifestyle business", which the "Dragons" define as a business that provides a job/income for the boss and staff but little else - and I guess that's what we are. There's no outside investors, no shareholder goals for profits and dividends - we make the best products we can for our customers and we try to end each month (after everyone is paid) with a bit more money in the bank than before, because a business that doesn't won't last very long. Sadly things seems to have been going the wrong way for a few months - we're selling plenty, getting the usual awesome feedback from our international rosta of owners, but the cash reserve (which finances all our material/component purchases) is getting too low to be comfortable. This mean we now need to analyse all our costs and update all our prices - it's not going to be much fun... I'm guessing we'll be seeing a 5-10% price increase on everything - we've not updated our prices in a fair while and although inflation is lower than it was, it's still been happening (and is cumulative) so everything is costing us more than it was. From a profitability perspective we really need to put the prices up now, but I don't want to annoy those of you that have been planning/saving for a purchase, so we're going to hold off the pricing revision until Monday 21st October. If you'd like a Barefaced cab at the current price, please order one now. Please understand that we do not have a choice in this: This is not "dynamic pricing" (aka screwing people because demand is higher than supply), and this is not something that can be avoided by increased production quantities - it is the cost per unit vs price per unit that is too high. To end on a more positive note, since we began all those years ago, I've been astounded and delighted by the quantity of repeat customers we get! For those of you that haven't heard/owned a Barefaced cab, please take note of how many people keep coming back to Barefaced for all their bass and guitar cab needs, and how many who've heard a cab in person then get in touch to help choose their own.​

Thanks for your understanding - and I hope that you're able to continue to support us! Alex and everyone at Barefaced HQ​

 

[Dlew919]

Cost and price per unit. Parts have gone up. Shipping has gone up. Rent has gone up. That’s what it seems to me.

 

[Killing Floor]

He’s referring to a phenomenon known as “inflation”. Rent increases, cost of utilities increase. His commute to work cost increases because petrol increases. The cost of food his family selfishly consumes increases. Wood, hardware, speakers, shipping, coverings increase. Employees’ cost of living increases continuously.

In a nutshell he’s saying he is reluctantly increasing prices to respond to increased cost and economic pressures that are stressing the business.

He’s also trying to spur a few last-minute orders from potential buyers.

 

[jnewmark]

He’s referring to a phenomenon known as “inflation”. Rent increases, cost of utilities increase. His commute to work cost increases because petrol increases. The cost of food his family selfishly consumes increases. Wood, hardware, speakers, shipping, coverings increase. Employees’ cost of living increases continuously.

In a nutshell he’s saying he is reluctantly increasing prices to respond to increased cost and economic pressures that are stressing the business.

He’s also trying to spur a few last-minute orders from potential buyers.

Thanks. Would it be correct to say that his business is similar to Bergantino, small business, small staff, etc.? His prices, for example, are a tad higher for a basic 112 with tweet, than Bergantino's, but are going up even more. I was considering a lightweight 112 from Barefaced, but maybe not so much now. BTW, inflation, according to him, is lower than it was.

 

[Silky Johnson]

It's understandable, all the other high end cabs have increased substantially in price and Barefaced is a fairly small operation

 

[6thplanet]

Welcome to the world we live in.

 

[Killing Floor]

BTW, inflation, according to him, is lower than it was.

Inflation “lower than it was” means prices are increasing at a slower rate.

 

[gtirard]

I think Barefaced cabs are super affordable because they are more efficient. For example I don't need more than one Super Compact (1x12) whereas with cheaper brands I would probably need to have a 2x12 or two 1x12. No to mention sound quality.

 

[MYLOWFREQ]

Sad but it is what it is.. it's either that, or Yamaha will buy them

 

[Tassieviking]

Inflation is not a good indication for the products needed to make a great quality Bass Cab (or Guitar Cab).
I think inflation is based more on things that the "average" consumer uses, not the best wood glue there is and quality speaker stuffing and specialized speaker drivers etc.
If the price of a Lamborghini goes up it wont show up in any inflation numbers.

If the Bareface bank balance has slowly been dropping then either the quality of material used has to drop to a cheaper quality or he has to put his prices up to continue providing the same or better quality goods.
I think most people prefer to pay a bit more then to get poor quality gear, and he has even given a heads up so people can still get some speakers ordered before the price increase.
I think that is a very nice thing to do, how many places just put the price up with no warning at all ?

 

[jnewmark]

Inflation, numerous causes, but mostly from over-government spending.

Bottom line:
Musical equipment is a non-essential luxury item.

What the buyer must decide:
To me, does the item's price exceed it's value?

If you feel it has, consider less expensive alternatives, consider used, keep what you already have, or wait till (hopefully) sane prices return.

Thanks. Serious question: When has prices on musical equipment, from any vendor, gone down?

 

[Microbass]

Additionally in the UK that the more successful they become, the higher their business taxes are.

 

[Fun Size Nick]

Additionally in the UK that the more successful they become, the higher their business taxes are.

This is true of anywhere where businesses pay tax on profits (ie most places in the world).

 

[ihixulu]

Inflation has been a constant part of life since I can remember. My grandfather would complain about a loaf of bread costing a buck… because in his day it was a dime. I remember when a gallon of gas was 99 cents so it’s funny to me when people get miffed comparing current prices to 2 bucks a gallon. Fact of life.

That said, I’m grateful to have gotten my SuperTwin before this price increase. If I had the need for another though, I would definitely buy it again at the new price. Worth it in my opinion. (And I am VERY cognizant of how lucky I am to be able to make such a statement.)

Here’s a q: considering how much plywood is going to be needed to rebuild in Florida and the other areas affected by the hurricanes, I imagine plywood prices are going to be rising. Will that impact cab makers in general?

 

[el murdoque]

I think Barefaced cabs are super affordable because they are more efficient. For example I don't need more than one Super Compact (1x12) whereas with cheaper brands I would probably need to have a 2x12 or two 1x12. No to mention sound quality.

This is the one thing most people fail to understand.
It's hard to believe, but a barefaced 112 gets more bass going than most 212 cabinets.

If you consider what you get in terms of cabinet, barefaced is very pricey. The cabs are tiny and don't even weigh anything.
If you consider what you get in terms of SPL, barefaced is quite cheap, since their 112 cabinets outperform mediocre 410 models.

 

[beans-on-toast]

Price increases are everywhere. Shipping costs are nuts. Barefaced prices include shipping. I’d bet it’s killing them. There’s also the pound’s value against other world currencies and raw material costs.

 

[TimBosby]

I got this email too and at first panicked because I thought they were going out of business. They aren't. Just a price increase. Par for the course.

The GBP has been historically weak for the last several years, which probably isn't helping them. I came close to buying a Three10 from them recently because a new one wasn't that much more expensive than a used one. Ended up working out a deal for the used one which should be here soon. I've had a Big Twin and a Super Twin in the past and they are tremendous cabs. Barefaced is a small company that makes a niche, boutique product for people who are willing to spend money on a niche, boutique product. It's likely a tough business to sustain and I'm actually surprised and pleased that they've been around for 16 years. They seem like great people (Alex is always super helpful if you email him with a question) and they make a great product. That said, it's not easy for ANY small company to stay in business, let alone one that sells a niche, boutique product in an inflationary environment to a global marketplace with a weak currency on top of it all. I would encourage any of you to give one of their cabs a try if you've got the coin (I say this as if I have the coin. I don't. I had to sell stuff, lol.)

 

[gtirard]

This is the one thing most people fail to understand.
It's hard to believe, but a barefaced 112 gets more bass going than most 212 cabinets.

If you consider what you get in terms of cabinet, barefaced is very pricey. The cabs are tiny and don't even weigh anything.
If you consider what you get in terms of SPL, barefaced is quite cheap, since their 112 cabinets outperform mediocre 410 models.

I'm happy you say that, because I always feel like a stupid member of a cult, a propagandist, so sometimes I try to refrain because I imagine others may find it boring.

But yeah, I play very often with regular brands in rehearsal studios, like Markbass, Fender, Ampeg or Hartke. And I can relate that a Barefaced 1x12 is comparable to other brands 2x12, or better.

Too bad you have to experience it to know.

Alex should lend his cabs to rehearsal studios so that guitarists and bassists can discover the difference.

 

[moon-bass]

This is the one thing most people fail to understand.
It's hard to believe, but a barefaced 112 gets more bass going than most 212 cabinets.

If you consider what you get in terms of cabinet, barefaced is very pricey. The cabs are tiny and don't even weigh anything.
If you consider what you get in terms of SPL, barefaced is quite cheap, since their 112 cabinets outperform mediocre 410 models.

My tiny Barefaced 1x10 cab easily fills a medium sized room without breaking a sweat, and outcompetes most of the other 2x10's that I've used - not to mention that it weighs next to nothing.

 

[lermgalieu]

Yeah, it's just inflation, but, as he notes, the prices haven't changed in a loooong time, so the price increase has to make up for that. I appreciate the transparency. Wonder when the price increase will take effect (not that I need or can afford another BF at the moment).