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Zim.

Tariffs to affect Klipsch pricing

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Speaking with a couple dealers of the professional line last week I was informed a number of Klipsch products were facing a price hike due to the Chinese tariffs.    I was somewhat surprised that at least some  of the professional line, e.g. KPT-1260H, is affected to the tune of a 20% hike effective Oct. 4.   This is a product shipping out of Hope, not Indy!   Those on the fence over a new purchase in the near future may want to send an inquiry to their dealer.

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There is always some bogus stuff that goes along with things like this. The same people that send our jobs overseas or want to replace us with cheap immigrant labor are also not above saying a 10% tariff increase is really a 20% and pocket the money once again. It's just like all this Chinese stuff was supposed to dramatically cut costs but what was cut was production costs and the middle men importers MBA/CPA types discovered they could still charge the same but expenses went down. Then quality went down but prices didn't and the end buyers now have to replace things more often so win win for everyone but the consumer.

 

  A perfect example of this is the cost of upper management, often MBA types and not engineer types that understand what they make, who now make far more as a multiple of the average wages in the companies they manage then they did when my Dad was last in corporate management in the mid 80's. Their compensation and golden parachutes have exploded into a historical aberration while they have sent jobs overseas for their method of growing their companies primarily for investor funds who want their reward in a year or two through plunder buyouts and stock manipulation. Nothing is for the long term and nothing is for America first anymore with these people. The days of Henry Ford saying that his factory workers making enough to afford what they built have been past up by those who don't care if their neighbors can afford what they make as long as the MBA(MBS) dude and investor sharks get theirs.

 

  Red Wing Shoes have been my favorites for some time. Last two times I went there to buy I paid attention to where they were made. What started this was a trip there where I had to go down a big list to find things even assembled here with foreign parts and then the sales dude had the nerve to ask me if I wanted a USA thing that would go on my boot laces. I let him have it with both barrels and asked him just what part of America was that chinese forced labor camp that made most of these assembled in USA shoes that somehow never went down in price. Bet they use a 10% cost increase to raise their stuff 20% too. No I am not there to see the actual prices so what I speak is conjecture which however is based on what I have to pay for things and how crummy many things have gotten in quality. PWK did not use MDF for instance.

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16 hours ago, Zim. said:

Speaking with a couple dealers of the professional line last week I was informed a number of Klipsch products were facing a price hike due to the Chinese tariffs.    I was somewhat surprised that at least some  of the professional line, e.g. KPT-1260H, is affected to the tune of a 20% hike effective Oct. 4.   This is a product shipping out of Hope, not Indy!   Those on the fence over a new purchase in the near future may want to send an inquiry to their dealer.

Sounds like a company taking advantage of consumers being gullible and using the tariffs as a scapegoat. More of the cost is likely in US assembly vs parts.  The prices on such things as the CW4 and Forte3 already have a handsome markup that I am sure picks up the fluff.  I also bet, even after the tariffs, just as taxes, the price never goes back down.

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I am not picking on Klipsch by the way as this is common across many companies.

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16 hours ago, Dave A said:

MBA/CPA types discovered they could still charge the same but expenses went down. Then quality went down but prices didn't and the end buyers now have to replace things more often so win win for everyone but the consumer.

 

You love denigrating MBA types, yet w/out them there would be no Klipsch.  Point to one successful Klipsch-sized company that does NOT rely on "MBA types" or accountants.

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1 hour ago, pzannucci said:

Sounds like a company taking advantage of consumers being gullible and using the tariffs as a scapegoat.

Actually it sounds like you don't pay attention to the news or current trade issues.  Highly doubt that Klipsch is "taking advantage of consumers".

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40 minutes ago, jimjimbo said:

Actually it sounds like you don't pay attention to the news or current trade issues.  Highly doubt that Klipsch is "taking advantage of consumers".

More than you would think.  Please correct me so I can learn, cost of US labor vs parts.  20% vs 25%

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I have no idea how Klipsch calculates their pricing for any product, but I do understand that if parts prices are raised by XX% due to tariffs or whatever, then the cost to the consumer is going to increase.   The current tariff is 25% on Chinese goods, which is over and above what it was last year at this time.  US labor costs are increasing as employers are under pressure to provide higher wages and better benefits to retain employees, so I am not surprised that the cost of Klipsch products has necessarily been bumped higher.  Putting the blame on executives and "MBA types" is IMHO looking in the wrong direction.  Let's put the blame where the blame is due, on the politicians that have created this mess.

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54 minutes ago, jimjimbo said:

I have no idea how Klipsch calculates their pricing for any product, but I do understand that if parts prices are raised by XX% due to tariffs or whatever, then the cost to the consumer is going to increase.   The current tariff is 25% on Chinese goods, which is over and above what it was last year at this time.  US labor costs are increasing as employers are under pressure to provide higher wages and better benefits to retain employees, so I am not surprised that the cost of Klipsch products has necessarily been bumped higher.  Putting the blame on executives and "MBA types" is IMHO looking in the wrong direction.  Let's put the blame where the blame is due, on the politicians that have created this mess.

From day one, politicians agreed.  Unfortunately we have to put a stake in the ground someplace when it comes to US IP concerns.  Can't stay status quo without handing over all the keys to the kingdom.  Outsourcing and giving away or allowing IP to be stolen so you can penetrate an emerging market is stupidity.

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On ‎9‎/‎29‎/‎2019 at 2:13 PM, Dave A said:

There is always some bogus stuff that goes along with things like this. The same people that send our jobs overseas or want to replace us with cheap immigrant labor are also not above saying a 10% tariff increase is really a 20% and pocket the money once again. It's just like all this Chinese stuff was supposed to dramatically cut costs but what was cut was production costs and the middle men importers MBA/CPA types discovered they could still charge the same but expenses went down. Then quality went down but prices didn't and the end buyers now have to replace things more often so win win for everyone but the consumer.

 

  A perfect example of this is the cost of upper management, often MBA types and not engineer types that understand what they make, who now make far more as a multiple of the average wages in the companies they manage then they did when my Dad was last in corporate management in the mid 80's. Their compensation and golden parachutes have exploded into a historical aberration while they have sent jobs overseas for their method of growing their companies primarily for investor funds who want their reward in a year or two through plunder buyouts and stock manipulation. Nothing is for the long term and nothing is for America first anymore with these people. The days of Henry Ford saying that his factory workers making enough to afford what they built have been past up by those who don't care if their neighbors can afford what they make as long as the MBA(MBS) dude and investor sharks get theirs.

 

  Red Wing Shoes have been my favorites for some time. Last two times I went there to buy I paid attention to where they were made. What started this was a trip there where I had to go down a big list to find things even assembled here with foreign parts and then the sales dude had the nerve to ask me if I wanted a USA thing that would go on my boot laces. I let him have it with both barrels and asked him just what part of America was that chinese forced labor camp that made most of these assembled in USA shoes that somehow never went down in price. Bet they use a 10% cost increase to raise their stuff 20% too. No I am not there to see the actual prices so what I speak is conjecture which however is based on what I have to pay for things and how crummy many things have gotten in quality. PWK did not use MDF for instance.

 

Can someone please explain this to me? 

The USA is oil independent.  ??  The largest producer in the world. 

So why do fuel prices go up when a Saudi well gets attacked?  Or if a US refinery burns, prices go up the next day when there is no shortage ???

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1 hour ago, IB Slammin said:

 

Can someone please explain this to me? 

The USA is oil independent.  ??  The largest producer in the world. 

So why do fuel prices go up when a Saudi well gets attacked?  Or if a US refinery burns, prices go up the next day when there is no shortage ???

Because you can sell your oil to other countries for more than you can sell it in the US because US will pay less.  Why not sell it where you can make more money so the US has to pay more to get the oil (World Markets).

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1 hour ago, IB Slammin said:

 

Can someone please explain this to me? 

The USA is oil independent.  ??  The largest producer in the world. 

So why do fuel prices go up when a Saudi well gets attacked?  Or if a US refinery burns, prices go up the next day when there is no shortage ???

because you would complain even more about socialism if the government tried to regulate oil prices in the US!  On a related note, oil refineries buy oil on long term contracts so a short term blip normally would not affect their costs... if your gas price goes up the day after a Saudi bombing.. something called capitalism is going on.. and yes the government could regulate this.. but..... ya know.. socialism..

 

 

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I believe the K-402 horn in manufactured in China. One of the forum members (In New Zealand or Oz, I think) received his shipment directy from CN.

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On 9/29/2019 at 1:33 PM, Zim. said:

Speaking with a couple dealers of the professional line last week I was informed a number of Klipsch products were facing a price hike due to the Chinese tariffs.    I was somewhat surprised that at least some  of the professional line, e.g. KPT-1260H, is affected to the tune of a 20% hike effective Oct. 4.   This is a product shipping out of Hope, not Indy!   Those on the fence over a new purchase in the near future may want to send an inquiry to their dealer.

That's odd, cause Cory posted on the 23rd that everything coming out of Hope was safe.  Maybe I read that wrong?  And it was 10-15% not 20%.

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14 hours ago, Dave A said:

I am not picking on Klipsch by the way as this is common across many companies.

Unfortunately.  The point earlier was to not use tariff as the driving factor with a multiple of the amount when there is a lot more to it.

 

46 minutes ago, The Dude said:

That's odd, cause Cory posted on the 23rd that everything coming out of Hope was safe.  Maybe I read that wrong?  And it was 10-15% not 20%.

That would seem more reasonable though still a big ding.

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11 hours ago, The Dude said:

That's odd, cause Cory posted on the 23rd that everything coming out of Hope was safe.  Maybe I read that wrong?  And it was 10-15% not 20%.

Please post the link to that thread, I don't see any 'activity' from MetropolisLakeOutfitters posted on the 23rd.   I did ask a similar question on why something shipped from Hope was affected and was told (paraphrasing) 'shipped out of Hope does not mean originating in Hope'.  PM sent shortly.

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12 hours ago, The Dude said:

That's odd, cause Cory posted on the 23rd that everything coming out of Hope was safe.  Maybe I read that wrong?  And it was 10-15% not 20%.

 

I saw that too, but I saw it on the Klipsch Owner's page on Facebook.

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1 hour ago, Zim. said:

Please post the link to that thread, I don't see any 'activity' from MetropolisLakeOutfitters posted on the 23rd.   I did ask a similar question on why something shipped from Hope was affected and was told (paraphrasing) 'shipped out of Hope does not mean originating in Hope'.  PM sent shortly.

https://www.facebook.com/photo.php?fbid=10156853291374401&set=gm.2771147489596194&type=3&eid=ARA8JxfOuXDku_6Y7ECY-T0BE5veAcZ2ygfWKQkpqasAxv61UNHOrFNZFhk0Pi1RSohNjB1RCnYQQIez&ifg=1

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21 hours ago, IB Slammin said:

 

Can someone please explain this to me? 

The USA is oil independent.  ??  The largest producer in the world. 

So why do fuel prices go up when a Saudi well gets attacked?  Or if a US refinery burns, prices go up the next day when there is no shortage ???

 

Oil is a commodity in a world-wide market.  What the world does, the market does.  Gasoline sells on a thin profit margin, about 3 cents for the 7-11.  There are some who say, in a rising market on a thin margin, the seller has to hike prices early so he can afford the next, more expensive, tank full.  I hear a touch of voodoo there, but if a seller has low cash flow, perhaps.  There is certainly some opportunism going on, but that is the heart of capitalism.  Before you start crying, would you sell your car below trade-in because a buyer "needed" a deal (and it is just WRONG to sell for the most you can get), or would you dicker with the dealer to get more than book trade-in? 

 

One thing that chaps my ... is folks that are crying about European steel parts going up because of "the tarriffs" on Chinese steel products.  There are no tarriff changes on euro parts, yet.  So, this is opportunism, again, on the part of the manufacturer.  That part is fine, its the crying and gnashing over something unrelated.  In this case, it is hurting the sales of a German US subsidiary, but it is self-inflicted. 

 

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On 9/29/2019 at 3:13 PM, Dave A said:

how crummy many things have gotten in quality. PWK did not use MDF for instance.

 

really?  ..Do you feel this way about cars too?? 

 

As for MDF, that's actually a step forward from PLY.  Ply has voids, warps, etc..  MDF is more consistent from sheet to sheet in terms of weight, thickness and dampening qualities.  And MDF is far easier to CNC/ route recesses, corners, etc..   This is why 99% of the best wood speakers in the world are made from MDF.    Ply is still a good choice for speakers made for commercial applications where sound Q may matter a bit less than durability.

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