No, no offense taken at all. Thank you for your e-mail as well. My goal was only to explain our perspective on pricing and why there are some differences between US and EU retail prices.
I've long recognized the pricing differences between markets; perhaps because early on, Universal pricing was a tool we examined and chose not to compete with. We don't have a Universal Pricing strategy that can hide import and construction cost-differences between some products and markets because to do that would add 30%-40% to our retail prices across our lines. The benefit is, you will never have to pay inflated retail prices. In addition, the value of our current model products is very high because the products are not used as commodities or discounted disproportionally. The negative is that you will see higher than US retail pricing in your market.
Power distributors for EU require very different, more involved labor and construction because of the outlets (single versus duplex) which increases our cost in production. There are also chassis differences and internal filtering (double the number in EU models compared to US). Even the power cords cost us more to produce because of the connector difference. Then, it really all comes down to shipping, import-tax and more hands handling products in terms of your costs. Our amazing EU Distributors are aware of the issues and we work together to keep pricing as low as possible compared to US.
Product retail-cost differences are an unfortunate part of every industry that deals with importing. With cables more than other types of products, such as electronics and speakers, its tempting to set one Universal price across all markets. This minimizes the impact of grey market (overseas shipping) problems (with easy to ship products) and additionally gives the manufacturer greater discount flexibility within the home market.
Cables have traditionally been a higher profit-margin commodity as opposed to speakers, electronics and especially video products which carry lower margins, typically. Some dealers look to cable as a + margin make-up product because they make insufficient margins to support their business by selling flat-screens or electronics. Or, dealers use cables as the way of saying "thank you" to the customer who buys an entire expensive system and then realizes, "oh yeah, I need cables too" and the dealer says, "I'll tell you what, because you spent all this money on a system, I'm going to make you a good deal on cables"--and that's how its been--more so in the US than overseas. Our products are not made for that type of sale or as a commodity to be bartered with. We make very-serious lower-priced, performance added products that are highly customized.
Other than Caelin's design expertise, our investments in custom-parts, measurement and explainable science, its our (based on our costs) pricing that explains why we are doing well 18 years after we got started. All of us that run our respective departments are still here, which also says something pretty cool.
There are great cable companies we are impressed by who make finely crafted, value-added products such as George Cardas, Ray Kimber and others. There are companies who use real science and lower retail prices that offer good value proportionate to cost and I would count us among them. Whether in cables, components or speakers, it helps to ask questions and stay well-informed, whether about science or pricing. We appreciate questions, whether on forums, by phone or e-mail.
Best regards,
Grant