Just heard two humans walking to the canteen talking about price rises in the UK.

To keep up with the weak pound and inflation, prices really should have gone up over 9% - however, a price rise of 2% is all that will happen. 

Bjorn

(PS - "Baa-aa-ah")

hahaha,

SecretSheep!!! What a user ! m:)

SecretSheep:

Just heard two humans walking to the canteen talking about price rises in the UK.

To keep up with the weak pound and inflation, prices really should have gone up over 9% - however, a price rise of 2% is all that will happen. 

Bjorn

(PS - "Baa-aa-ah")

How long will sales and profits have to collapse at B&O before they realise that they are moving so far from reality in pricing its not true?

355f:

SecretSheep:

Just heard two humans walking to the canteen talking about price rises in the UK.

To keep up with the weak pound and inflation, prices really should have gone up over 9% - however, a price rise of 2% is all that will happen. 

Bjorn

(PS - "Baa-aa-ah")

How long will sales and profits have to collapse at B&O before they realise that they are moving so far from reality in pricing its not true?

Ahh but in real terms they will have reduced their UK prices by 7%

Puncher:

355f:

SecretSheep:

Just heard two humans walking to the canteen talking about price rises in the UK.

To keep up with the weak pound and inflation, prices really should have gone up over 9% - however, a price rise of 2% is all that will happen. 

Bjorn

(PS - "Baa-aa-ah")

How long will sales and profits have to collapse at B&O before they realise that they are moving so far from reality in pricing its not true?

Ahh but in real terms they will have reduced their UK prices by 7%

But it is an important point, I think. They have built up a reputation, that B&O items keeps their value for many years. If they begin to reduce prices in nominal terms they will destroy this reputation.

It is kind of the same mechanism with wages. Wages almost never falls in nominal terms, but if they have gone to high up, they will stay the same for years, and the real value of the wage will be eroded by inflation.

Christian:

Puncher:

355f:

SecretSheep:

Just heard two humans walking to the canteen talking about price rises in the UK.

To keep up with the weak pound and inflation, prices really should have gone up over 9% - however, a price rise of 2% is all that will happen. 

Bjorn

(PS - "Baa-aa-ah")

How long will sales and profits have to collapse at B&O before they realise that they are moving so far from reality in pricing its not true?

Ahh but in real terms they will have reduced their UK prices by 7%

But it is an important point, I think. They have built up a reputation, that B&O items keeps their value for many years. If they begin to reduce prices in nominal terms they will destroy this reputation.

It is kind of the same mechanism with wages. Wages almost never falls in nominal terms, but if they have gone to high up, they will stay the same for years, and the real value of the wage will be eroded by inflation.

Well the notion that B&O holds its value over many years is now over!  Have you attempted to see what a 1 year old BV4 is worth? On my previous BV4 - cost £11,500 px value £2K!

For loudspeakers its is still true but for vision and audio products forget the B&O investment!

355f - Being 12 Months old, it will be HD. If you've been offered £2k for it, the store/person making you that offer will without doubt be thinking it's non-HD.

I do agree that the non-HD large screens have taken a battering in price, but that's not really B&O's fault.  There are scores of other manufacturers out there that all jumped on the HD boat, which really devalued all non-HD kit.

Thankfully, even non-HD Bang & Olufsen screens give a damn good image, so they still have some value. Try asking for a value on the 32" non-HD Sony LCD you paid £3k for  when they first came out.. i doubt it's worth much more than a pair of new A8's now.

I maintain that on the whole, B&O products hold their money incredibly well on average. If they didn't - i wouldn't have a business. New technology and advancements hit every brands used values, but even after that - B&O does well.

Lee 

I am sorry, but I cannot recognice the second hand value. For the 4-50 I have observed a price range from 7.600 - 8.600 £, compared to the current retail price of 12.000 £ or about 9.500 £ if you get a by Danish standard "normal" discount. (Prices are converted from DKK...)

It might be a different market, and of cause the loss of value is much greater when a new model comes out, but I still think that BeoVisions has a good resale price.

In the past im sure money invested in a BS9000 or any of the speakers was well advised.

But for vision other than a basic LCD its moving very fast- changed format accepted. BS2 and early BV4 turned out to be the most unfortunate investment.

Lee from your perspective it doesnt matter and you will always have a ,market beacuse you can respond to the pricing needs of the market as it stands now- with no real regard to retail price.

355f:

Well the notion that B&O holds its value over many years is now over!  Have you attempted to see what a 1 year old BV4 is worth? On my previous BV4 - cost £11,500 px value £2K!

For loudspeakers its is still true but for vision and audio products forget the B&O investment!

Why do you think I flogged my BV7-32 in November, as soon as the BV7-40 was released? I knew I'd get a decent trade-in value for the BV7-32 based on the prices offered at the time, knowing this would drop when the HDMI-based BV7-40 became 'standard' and people were less interested in the BV7-32.

355f, working in the industry you should have been able to see that a) a non-HD based system will drop in value as soon as HD systems start replacing the old model and b) that the size of the BS2 was going to be dramatically reduced in the future (my opinion of seeing the BS2 was 'I'm not having that in my living room...').

Most B&O products retain a high value. As Lee mentioned, I was close to buying a 32" Sony LCD back in 2004, when I purchased the BV7-32. The Sony LCD was £3000, whereas the B&O was around £5800.

In November 2007, the same BV7-32 retained a trade-in value of £4000, whereas that old Sony 32" would be worth around £150, second hand.

If someone said that you could buy a BV7-32 in 2004 and keep it for three years, selling it back for a lost of only £1800, you'd think you were barmy - could you imagine how much it would have cost to rent a BV7-32? £100/month?

355f:

Lee from your perspective it doesnt matter and you will always have a market beacuse you can respond to the pricing needs of the market as it stands now - with no real regard to retail price.

On the flip side, if used B&O became either worthless or worth a tiny percentage of it's original purchase price just like other brands - i would not have a business..

Lee 

Christian:

I am sorry, but I cannot recognice the second hand value. For the 4-50 I have observed a price range from 7.600 - 8.600 £, compared to the current retail price of 12.000 £ or about 9.500 £ if you get a by Danish standard "normal" discount. (Prices are converted from DKK...)

I think you are confusing trade in prices with second user selling price from a reputable seller.

joeyboygolf:

Christian:

I am sorry, but I cannot recognice the second hand value. For the 4-50 I have observed a price range from 7.600 - 8.600 £, compared to the current retail price of 12.000 £ or about 9.500 £ if you get a by Danish standard "normal" discount. (Prices are converted from DKK...)

I think you are confusing trade in prices with second user selling price from a reputable seller.

It might be because English is not my first language, but what do you mean?

As in car sales, the dealer buys your car from you at price "X" as a "trade-in" against your new car. He will then sell you old car to someone else at price "Y" - jbg's "second user selling price". This price will generally be higher from a reputable seller to cover the cost of customer service/warranty etc.

Depending upon the difference between X & Y the dealer may also be known as a rotten, robbing, ********

The "trade in" price that you may be offered by a dealer will be considerably less than the price that the dealer then offers the set for resale. This price difference has to cover any refurb work, any warranty offered, sales taxes, interest on capital, overheads and profit margin.

B&O dealers work on 30% gross margin. I suspect that many 2nd user dealers would need more than this on some products!

Thanks for making that clear .

The prices I have observed is on dba.dk, which is, like ebay, private to private sales. No warranty etc.

joeyboygolf:

The "trade in" price that you may be offered by a dealer will be considerably less than the price that the dealer then offers the set for resale. This price difference has to cover any refurb work, any warranty offered, sales taxes, interest on capital, overheads and profit margin.

B&O dealers work on 30% gross margin. I suspect that many 2nd user dealers would need more than this on some products!

I think you will find that they work on a 40% margin

i had two non bno crt tv's a philips and a sony , i ended up having to pay £50 to the dustmen to take the damn things away !!!

they cost over £3k between them ! 

while my avant is still actually worth something !!! 

nuff said 

beolife:

joeyboygolf:

The "trade in" price that you may be offered by a dealer will be considerably less than the price that the dealer then offers the set for resale. This price difference has to cover any refurb work, any warranty offered, sales taxes, interest on capital, overheads and profit margin.

B&O dealers work on 30% gross margin. I suspect that many 2nd user dealers would need more than this on some products!

I think you will find that they work on a 40% margin

30% is the figure quoted in their calculations on the B&O website. I am sure that their franchisees are delighted when it turns out to be more!

Flappo The Grate:

while my avant is still actually worth something !!! 

nuff said 

A minimum £500 px upto 31/7.

TerryM:

Flappo The Grate:

while my avant is still actually worth something !!! 

nuff said 

A minimum £500 px upto 31/7.

My understanding is that the dealer contributes half of this out of their profit