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Post by kcatthedog on Oct 5, 2024 15:39:04 GMT -6
I think we more agree than disagree. As one’s income goes up life is more affordable , the opposite as income falls.
I only posted the first graph , as the thread at that point seem to be saying people’s disposable income was falling, the graph just surprised me?
Both the US and Cdn have experienced high inflation and our respective central banks using high interest rates as the blunt economic instrument to reduce spending and the use of credit.
This typically takes a couple of year’s to work it’s way through the economy. The fed only just cut rates by .5, after years of steady increases: more aggressive rate cuts are expected.
Our Bank of Canada started cutting rates earlier and our inflation rate is now back down to around the BoC target of 2%, so we too expect continued rates cuts.
Lower rates for those of us who are indebted, should equate to increases in real disposable income as borrowing costs fall and possible lower prices due to lower production costs.
Market corrections are a fact of economic life, the great thing about the US economy is how aggressive your retailers are, but that cuts both ways, challenging the retailers’ viability as margins shave etc..
Hopefully, both our economies have a relatively smooth landing.
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Post by indiehouse on Oct 5, 2024 15:44:59 GMT -6
I’d rather see a permanent lower price rather than constant sales. It has a bit of a numbing effect. The Waves effect.
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Post by copperx on Oct 5, 2024 16:03:45 GMT -6
More than 60% of people in the US can't cover a $500 unexpected expense. So if we can drop a few k on audio gear on a whim, we might not be the average consumer. Most of us are not making money out of this passion, so that means Audioscape, Stam, etc. are sellers of luxury goods. A Bricasti is our Birkin bag.
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ericn
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Post by ericn on Oct 5, 2024 16:36:46 GMT -6
I’d rather see a permanent lower price rather than constant sales. It has a bit of a numbing effect. The Waves effect. Completely agree but experience unfortunately tells me we are the minority. Trust me having actually had complete control over the price offered if say I quoted the majority say $800 for a 414 ( MAP) it was quite easy to close the deal with an $850 quote good for 2 weeks I had about a 80 percent chance of closing the deal. You never know what will causes a sale or price drop, it can be trying to move more units vs less sales at higher mark, it can be some costs have dropped, a better credit rate, they paid the mortgage on the factory. |
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Post by smashlord on Oct 5, 2024 16:41:50 GMT -6
I’d rather see a permanent lower price rather than constant sales. It has a bit of a numbing effect. The Waves effect. Amen and a coupon for existing customers, not just new folks who sign up for a newsletter. |
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Post by 79sg on Oct 5, 2024 16:48:26 GMT -6
More than 60% of people in the US can't cover a $500 unexpected expense. So if we can drop a few k on audio gear on a whim, we might not be the average consumer. Most of us are not making money out of this passion, so that means Audioscape, Stam, etc. are sellers of luxury goods. A Bricasti is our Birkin bag. This is true. What I've noticed over the past bunch of months (about a year now) is the people I know regardless of financial status including very wealthy have all slowed if not halted their spending on non necessities, at least the smart ones have. I've heard this from others that monitor these things as well. |
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ericn
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Post by ericn on Oct 5, 2024 17:11:58 GMT -6
I’d rather see a permanent lower price rather than constant sales. It has a bit of a numbing effect. The Waves effect. Amen and a coupon for existing customers, not just new folks who sign up for a newsletter. I agree, but let me add a bit that I always tell retail and other consumer businesses; the problem with “ reward programs “ & even special coupons don’t really buy loyalty over time, they have this way of becoming expected, and the customer feels he is due these discounts. If you really want to develop loyalty you track sales and simply offer a suprise discount when you can. Nothing like me quoting you a price you agreeing to buy it and invoicing you for 10% less to build loyalty. 😎 |
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Post by smashlord on Oct 5, 2024 19:27:12 GMT -6
I think in this case it would be a showing of good faith to maintain goodwill more than necessarily an ongoing strategy to encourage more sales.
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Post by Oneiro on Oct 7, 2024 6:21:18 GMT -6
Yeah, I agree with Eric's direction on this, perhaps for different reasons. Frankly, the expectation of some kind of reward for a previous transaction (that usually has early bird pricing) is a bit dishonorable to me. The entitlement of people in today's ecosystem disgusts me a little. You bought it, you received the product, you aren't owed anything. I'm surprised developers are even this generous when they really shouldn't be. True loyalty is actually wanting to see the developer make a living and do very well and last for a long time such that they can support their products properly with a good lifespan.
And people talking about their own limited means to make a record in this day and age, where free clones exist around every corner...You don't even know how good you have it now.
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Post by kcatthedog on Oct 7, 2024 6:28:25 GMT -6
There really is no free lunch, so special, periodic deals/price cuts, suggests a lower normal price is possible.
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Post by FM77 on Oct 7, 2024 9:43:07 GMT -6
Yeah, I agree with Eric's direction on this, perhaps for different reasons. Frankly, the expectation of some kind of reward for a previous transaction (that usually has early bird pricing) is a bit dishonorable to me. The entitlement of people in today's ecosystem disgusts me a little. You bought it, you received the product, you aren't owed anything. I'm surprised developers are even this generous when they really shouldn't be. True loyalty is actually wanting to see the developer make a living and do very well and last for a long time such that they can support their products properly with a good lifespan.
And people talking about their own limited means to make a record in this day and age, where free clones exist around every corner...You don't even know how good you have it now.
While I do feel most people are over-entitled these days, I don't read the complaint that way. Companies often go after new sales and give a new customer a deal on the purchase of their choice. If you have already supported the company and purchased with them in the past (even multiple times) often you are not extended that same discount. Right or wrong, good or bad, that is a common practice that many pro audio internet retailers have adopted. For many, that leaves them with a feeling that the company only values new customers. That is perfectly understandable. Businesses like this are nothing without repeat customers. 'True Loyalty' goes both ways.
As for the rest, it comes down to timing, and with AS it has been stretched a bit thin IMO. When you already purchased an item on a super 'sale' price (that may have been your sole motivating decider), that generally indicates you got more market value/equity for your money and it is worth the cash exchange. When that same item is reduced again within days or weeks after you bought it, I can see how people feel a genuine disloyalty as the market value was now taken from them by the company. Legit feeling.
Some people are wankers, I agree, but many complaints along these lines are legit. UA is one of the most loathed companies in pro audio for doing that very thing.
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Post by smashlord on Oct 7, 2024 10:45:35 GMT -6
Yeah, I agree with Eric's direction on this, perhaps for different reasons. Frankly, the expectation of some kind of reward for a previous transaction (that usually has early bird pricing) is a bit dishonorable to me. The entitlement of people in today's ecosystem disgusts me a little. You bought it, you received the product, you aren't owed anything. I'm surprised developers are even this generous when they really shouldn't be. True loyalty is actually wanting to see the developer make a living and do very well and last for a long time such that they can support their products properly with a good lifespan.
And people talking about their own limited means to make a record in this day and age, where free clones exist around every corner...You don't even know how good you have it now.
While I do feel most people are over-entitled these days, I don't read the complaint that way. Companies often go after new sales and give a new customer a deal on the purchase of their choice. If you have already supported the company and purchased with them in the past (even multiple times) often you are not extended that same discount. Right or wrong, good or bad, that is a common practice that many pro audio internet retailers have adopted. For many, that leaves them with a feeling that the company only values new customers. That is perfectly understandable. Businesses like this are nothing without repeat customers. 'True Loyalty' goes both ways.
As for the rest, it comes down to timing, and with AS it has been stretched a bit thin IMO. When you already purchased an item on a super 'sale' price (that may have been your sole motivating decider), that generally indicates you got more market value/equity for your money and it is worth the cash exchange. When that same item is reduced again within days or weeks after you bought it, I can see how people feel a genuine disloyalty as the market value was now taken from them by the company. Legit feeling.
Some people are wankers, I agree, but many complaints along these lines are legit. UA is one of the most loathed companies in pro audio for doing that very thing.
Thank you. I think any consumer that likes a company and their products wants to see them to continue to thrive and is generally OK with not paying the "best price" as long as it is a fair price. I don't imagine the occasional 10% off sale is going to ruffle many feathers, however seeing products being sold at de facto 25% price drops (you can call it a sale, but when there is a new sale every week, well.....) plus additional discounts for new customers is a bit different, especially coming out of few years of high inflation. As another poster pointed out, if you look at gear not only as a tool but a place to park your money (while enjoying it), seeing its value drop substantially can make one hesitant to put more money into that particular gear. Even if one doesn't care about resale value, one might be reluctant to buy a company's newest product if history suggests it will be available at a meaningfully lower price with a little waiting. I don't think having such sentiments qualifies as "entitlement", but even if it did, if a business wants to retain its customer base and encourage future business, they need navigate that regardless. Empathy, not sympathy is what matters in business and I am sure any business would rather have feedback from consumers than not. As they say in sales, "The one objection you can never overcome is the hidden one". |
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