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How the 25% tariff on Chinese goods might affect the synth community

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #40 on: August 10, 2018, 03:20:13 PM »
This topic caught my eye as I bought an Arturia MatrixBrute a couple weeks ago.  I knew Arturia was headquartered in France and was quite surprised to receive a box with, "Made in China" stamped on it.  I guess I just thought it would be made in France  ::)

Check this out, I bought my MatrixBrute through Amazon.com and a 3rd party seller named, "Everything Music" on July 28.  I paid $1,999 and they threw in a 1 year extended free warranty.  There were several Amazon retailers selling the MxB for $1,999, and a few at $2,299.  I just took a look on Amazon and not a single Amazon retailer is selling the synth now for anything less than $2,299!  Everything Music is now selling the MatrixBrute for $2,299 with no extended warranty for a price increase of 15%.  I guess the old saying is true...timing is everything  ;)

So what do people think, is it correct to surmise that this price increase and elimination of the extended warranty is an effect of the recently announced China tariff?
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Shaw

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Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #41 on: August 10, 2018, 04:59:34 PM »
This topic caught my eye as I bought an Arturia MatrixBrute a couple weeks ago.  I knew Arturia was headquartered in France and was quite surprised to receive a box with, "Made in China" stamped on it.  I guess I just thought it would be made in France  ::)

Check this out, I bought my MatrixBrute through Amazon.com and a 3rd party seller named, "Everything Music" on July 28.  I paid $1,999 and they threw in a 1 year extended free warranty.  There were several Amazon retailers selling the MxB for $1,999, and a few at $2,299.  I just took a look on Amazon and not a single Amazon retailer is selling the synth now for anything less than $2,299!  Everything Music is now selling the MatrixBrute for $2,299 with no extended warranty for a price increase of 15%.  I guess the old saying is true...timing is everything  ;)

So what do people think, is it correct to surmise that this price increase and elimination of the extended warranty is an effect of the recently announced China tariff?
Could be lots of things... including good old fashioned supply and demand.  If Everything Music had 10 of them, they’re likely to offer discounts to move them. If they have 1 or 2, less incentive to make a deal... I’ve sold synths on Reverb for more than I paid for them... same reason... there was minimal supply when I listed mine, so I commanded my price.

"Classical musicians go to the conservatories, rock´n roll musicians go to the garages." --- Frank Zappa

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #42 on: August 10, 2018, 06:21:09 PM »
This topic caught my eye as I bought an Arturia MatrixBrute a couple weeks ago.  I knew Arturia was headquartered in France and was quite surprised to receive a box with, "Made in China" stamped on it.  I guess I just thought it would be made in France  ::)

Check this out, I bought my MatrixBrute through Amazon.com and a 3rd party seller named, "Everything Music" on July 28.  I paid $1,999 and they threw in a 1 year extended free warranty.  There were several Amazon retailers selling the MxB for $1,999, and a few at $2,299.  I just took a look on Amazon and not a single Amazon retailer is selling the synth now for anything less than $2,299!  Everything Music is now selling the MatrixBrute for $2,299 with no extended warranty for a price increase of 15%.  I guess the old saying is true...timing is everything  ;)

So what do people think, is it correct to surmise that this price increase and elimination of the extended warranty is an effect of the recently announced China tariff?
Could be lots of things... including good old fashioned supply and demand.  If Everything Music had 10 of them, they’re likely to offer discounts to move them. If they have 1 or 2, less incentive to make a deal... I’ve sold synths on Reverb for more than I paid for them... same reason... there was minimal supply when I listed mine, so I commanded my price.

True, but I don't think that's it in this case.  When I bought mine they had 2 in stock...now they show 2 in stock again.  The thing is it wasn't just the retailer I bought from that raised the price 15%, it was every Amazon retailer that carries them (and there were at least 4 others at the $1,999 mark 2 weeks ago).  Why does everyone move up 15% at the same time?  Seems like an odd coincidence especially in light of the China tariff announcement.  OTOH, Sweetwater had them at $2,299 a couple weeks ago and remained at that price, so who knows  ;)
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Shaw

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Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #43 on: August 10, 2018, 06:30:07 PM »
This topic caught my eye as I bought an Arturia MatrixBrute a couple weeks ago.  I knew Arturia was headquartered in France and was quite surprised to receive a box with, "Made in China" stamped on it.  I guess I just thought it would be made in France  ::)

Check this out, I bought my MatrixBrute through Amazon.com and a 3rd party seller named, "Everything Music" on July 28.  I paid $1,999 and they threw in a 1 year extended free warranty.  There were several Amazon retailers selling the MxB for $1,999, and a few at $2,299.  I just took a look on Amazon and not a single Amazon retailer is selling the synth now for anything less than $2,299!  Everything Music is now selling the MatrixBrute for $2,299 with no extended warranty for a price increase of 15%.  I guess the old saying is true...timing is everything  ;)

So what do people think, is it correct to surmise that this price increase and elimination of the extended warranty is an effect of the recently announced China tariff?
Could be lots of things... including good old fashioned supply and demand.  If Everything Music had 10 of them, they’re likely to offer discounts to move them. If they have 1 or 2, less incentive to make a deal... I’ve sold synths on Reverb for more than I paid for them... same reason... there was minimal supply when I listed mine, so I commanded my price.

True, but I don't think that's it in this case.  When I bought mine they had 2 in stock...now they show 2 in stock again.  The thing is it wasn't just the retailer I bought from that raised the price 15%, it was every Amazon retailer that carries them (and there were at least 4 others at the $1,999 mark 2 weeks ago).  Why does everyone move up 15% at the same time?  Seems like an odd coincidence especially in light of the China tariff announcement.  OTOH, Sweetwater had them at $2,299 a couple weeks ago and remained at that price, so who knows  ;)
I hear you... another possibility is Arturia enforcing their Minimum Advertised Price.  Those prices are contractual. Retailers who violate that contract risk losing their ability to sell as official Arturia retailers (which is important to the buyer for things like warranty).

"Classical musicians go to the conservatories, rock´n roll musicians go to the garages." --- Frank Zappa

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #44 on: August 10, 2018, 06:42:30 PM »
^ good point...that could certainly be the case.  Either way I pulled the trigger just in time  ;D
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #45 on: August 10, 2018, 08:16:44 PM »
I believe the MatrixBrute was actually slated to have a price increase before the Tariffs were even announced.
Prophet 6, Prophet X, Moog Sub 37, Tempest Drum Computer, Roland V Piano,Kurzweil K2600XS, Roland FA-08, Baldwin Upright Piano, Fender Stratocaster, Fender Telecaster, Gibson Chet Atkins SST, Jackson King V, Ibanez Jem, Roger Linn Adrenalinn iii

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #46 on: August 11, 2018, 06:17:59 PM »
I believe the MatrixBrute was actually slated to have a price increase before the Tariffs were even announced.

Interesting.  Well, it looks like almost everyone's at the $2,299 mark now, though I found a couple odd ducks still at $1,999  ;)
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Prophet 6, Prophet X, Moog Sub 37, Tempest Drum Computer, Roland V Piano,Kurzweil K2600XS, Roland FA-08, Baldwin Upright Piano, Fender Stratocaster, Fender Telecaster, Gibson Chet Atkins SST, Jackson King V, Ibanez Jem, Roger Linn Adrenalinn iii

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #48 on: August 12, 2018, 09:14:14 AM »
http://www.synthanatomy.com/2018/03/arturia-matrixbrute-price-raise-july-1st-2018.html

"Due to increasing cost of the internal analog components, manufacturing, and shipping, Arturia have made the decision to raise the price of the MatrixBrute, which was announced at NAMM 2016, and has gone on to win multiple media, consumer, and pro audio awards since its release."

This was announced way back in March before the Chinese tariff increase became an issue so I guess they're not related after all  ;)
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #49 on: August 12, 2018, 11:00:55 AM »
Even still...the difference in price isn’t that bad.
Prophet 6, Prophet X, Moog Sub 37, Tempest Drum Computer, Roland V Piano,Kurzweil K2600XS, Roland FA-08, Baldwin Upright Piano, Fender Stratocaster, Fender Telecaster, Gibson Chet Atkins SST, Jackson King V, Ibanez Jem, Roger Linn Adrenalinn iii

Shaw

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Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #50 on: August 12, 2018, 11:54:04 AM »
"Due to increasing cost of the internal analog components, manufacturing, and shipping, Arturia have made the decision to raise the price of the MatrixBrute....


I read that as well.  I figure you could translate that to mean anything — including, but limited to, the following:
— “Shipping rates around the world are on the rise and we’re passing the costs along.”
— “The first batch of components weren’t so great, so we sourced better quality, albeit more expensive, components for subsequent runs.”
— “These things are more popular than we thought, so we figured we’d get a little extra out of them.”
— “Last week, we fired guy who decided to price this thing $1500 under the Moog Model D.”


 :)
"Classical musicians go to the conservatories, rock´n roll musicians go to the garages." --- Frank Zappa

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #51 on: August 12, 2018, 03:09:12 PM »
— “These things are more popular than we thought, so we figured we’d get a little extra out of them.”

That was the first one that popped into my mind!  When I was researching my purchase I looked at 20+ customer reviews and all but one were 5 stars (the other was a 4).  They must be pretty confident in continued sales otherwise they wouldn't cross the $2K psychological pricing barrier moving minimum retail from $1,999 to $2,299  ;)
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #52 on: September 29, 2018, 03:45:26 AM »
Here's a Sweetwater post on the matter:

Quote
Tariffs have been in the news a lot lately. What do they mean for you and the gear you love?

Raw materials and goods from China are being affected by tariffs announced in June that started to be implemented in July and August. As you can imagine, this will impact the music instrument industry, as China produces many of the components in the equipment we use every day. Based on conversations with our partners, we anticipate that some prices will increase as much as 25% in the coming months. The first few categories to be affected will be those with electronic components, such as powered speakers, mixers, keyboards, and electronic drums.

We are working with our manufacturer partners to try to minimize rising gear costs for our customers as a result of these tariffs. However, while price increases will vary from brand to brand, it’s likely that most manufacturers will be affected. If there’s something you’ve been thinking about buying, our best advice is to get it now before the price goes up.

As we get more detailed information or become aware of additional increased prices, we will be sure to keep you updated.


FAQ

When will tariff-related price increases start to take place?
Likely before the end of the fourth quarter as our partners work through existing pre-tariff raw materials.

Will this affect other music gear categories?
Most likely every category will see some impact from this. We will, as always, keep you posted.

How big will the price increases be?
At this time, there is no reason to think that we’ll see anything beyond 25%.

https://www.sweetwater.com/insync/new-tariffs-will-prices-go-gear-love/?utm_source=facebook&utm_medium=referral&utm_campaign=insync-promo&utm_content=insync-organic-post-tariff

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #53 on: September 29, 2018, 04:36:32 AM »
I fear there will be price gouging under the guise of tariffs.  A 25% tariff on specific components doesn’t equate to a 25% increase in cost of finished product.  It is like how gas stations will immediately raise the price of gas on bad news in the Middle East or bad weather in the Gulf of Mexico before there could be any real impact to their suppliers. Quick to go up before real crisis and slow to go down long after crisis. 

I hope I’m wrong.
« Last Edit: September 29, 2018, 04:38:31 AM by Gomjab »

Shaw

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Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #54 on: September 29, 2018, 05:41:37 AM »
"Classical musicians go to the conservatories, rock´n roll musicians go to the garages." --- Frank Zappa


Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #56 on: September 29, 2018, 08:30:36 AM »
I fear there will be price gouging under the guise of tariffs.  A 25% tariff on specific components doesn’t equate to a 25% increase in cost of finished product.  It is like how gas stations will immediately raise the price of gas on bad news in the Middle East or bad weather in the Gulf of Mexico before there could be any real impact to their suppliers. Quick to go up before real crisis and slow to go down long after crisis. 

I hope I’m wrong.

This gas price example is the first thing I thought of, but the gouge only works if all the retailers remain in lock step.  It seems the 90's/00's when Musicians Friend was much cheaper than Sweetwater, but Sweetwater gave much better support and customer service so could justify a higher price are long gone.  All the major online suppliers (Sweetwater, Musicians Friend, Sam Ash, Guitar Center Online, all the misc Amazon 3rd party sellers, etc) appear to offer gear at almost the same exact same price regardless of how great or poor their customer service is.  I don't think this is a coordinated effort by the retailers to not undercut each other, but they all sell at the manufacturers minimum allowed advertised price.  In this case, it doesn't matter how much Sweetwater (or any retailer) works with their suppliers, the manufacturers will likely be the source of the gouging by raising their minimum allowable advertised price...in which case the retailers have no options and neither will we  :(
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #57 on: September 29, 2018, 08:55:26 AM »
@WytchCrypt Yeah I wasn’t trying to put the blame on resellers like MF or SW with my gas example. I just worry that somewhere along the chain some may be tempted to take advantage.

Shaw

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Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #58 on: September 29, 2018, 08:59:50 AM »
Absolutely.  The gouging is most likely to happen at the manufacturer level.
"Classical musicians go to the conservatories, rock´n roll musicians go to the garages." --- Frank Zappa

Re: How the 25% tariff on Chinese goods might affect the synth community
« Reply #59 on: September 29, 2018, 01:19:10 PM »
@WytchCrypt Yeah I wasn’t trying to put the blame on resellers like MF or SW with my gas example. I just worry that somewhere along the chain some may be tempted to take advantage.

No sweat  ;)  I think the gas example was great.  Price goughing starts at the top, accelerates downhill passing through many hands and unfortunately us consumers are the end of the line  :(
Mutiny in Jonestown, Progressive Rock Since 1987:

Website: https://wytchcrypt.wixsite.com/mutiny-in-jonestown
Bandcamp: https://mutinyinjonestown.bandcamp.com/