General Forum

Re: Thoughts about profits and pricing

TripEnglish — Fri, 15 May 2009 13:10:17 GMT

The BeoLab 11 is the new sub. It's been well gossiped about already.

Re: Thoughts about profits and pricing

koning — Fri, 15 May 2009 12:55:02 GMT

Beolab 11

that's all you want to say about it.....give us more hints pleeeaaase....

Re: Thoughts about profits and pricing

TripEnglish — Fri, 15 May 2009 12:47:11 GMT

First of all there is not enough profit margin to make significant reductions.

The other issues is that the reductions wouldn't matter! Aside from the value end of the spectrum, like BeoSound 1 & BeoVision 8, reductions would have to be utterly massive to make a difference. Think about it. A BeoVision 7-40 is about $15k give or take here in the US. What would the price have to be to get a statistically significant increase in sales (I'm not talking about pushing a few more people over the edge). I have been in this long enough to understand that people who wouldn't pay $14,500 on a television aren't going to pay $12,000 or $10,000. The prices would have to be cut in half or better to move the needle significantly based on price alone.

I'm more inclined to agree that it's the nature of the products that will move units. The BeoVision 7 has been an unqualified success, as has the BeoSound 5. Both are iconic, useful, and completely unique in their segment. There are still plenty of quibbles about the prices of these two, but the numbers speak for themselves. Contrast those with the BeoSound 4 which, while good looking, certainly didn't add to the brand, and the BeoVision 9 which has never found its footing.

From what I see, the BeoVision 10, BeoLab 11, and other products (some of which haven't even been hinted at here) are a true return to form. Enough, most likely, to help us forget all about the BeoSound 6.

Re: Thoughts about profits and pricing

Luke — Fri, 15 May 2009 05:55:18 GMT

I have to admit.. the drop in price of BV8-32 helped put me make the purchase. Sure I know that it is not Full HD but it's not really necessary for that size TV is it?

I think the BV4 is probably a bit overpriced. Especially when you compare it to the BV 7. Shame that is the TV that would fit our house perfectly.

Re: Thoughts about profits and pricing

Milton78 — Fri, 15 May 2009 05:22:01 GMT

I would say that B&O is in red for two reasons:

The current financial situation is affecting many people who may be more reluctant to invest in something as what B&O stands for.
The fact that B&O has as of late, not come out with anything "wow - I really want one of those!".

The first one affects the entire global economy, and explains why not only Sony, but also NEC, Mitsushita etc. are bleeding! As B&O is a marginal player on this market, I would expect this to be part of the explanation.

The second one is more B&O's own fault. The products launched lately, with the exception of BV 7, have not been, at least in my opinion, what B&O should stand for. The last additions have been new colours (which may speak to some) and also discontinuation of interesting areas such as MP3-players and mobile phones. (Not that the last mobiles from B&O have been that great).

I do not think it's a price issue. Although I would love for their products to be cheaper, I also believe that what made and continues to make B&O great, is that their products are not massproduced, they are not available at every corner electronic store or mega outlets (none mentioned) but at select stores where the customer and the customer experience is in focus.

Re: Thoughts about profits and pricing

Puncher — Fri, 15 May 2009 03:45:35 GMT

tournedos:

Plus, I believe there are a number of customers that would lose interest after "everybody" has B&O in their homes.

Unlikely ever to be close friends of mine!

Re: Thoughts about profits and pricing

tournedos — Fri, 15 May 2009 03:08:28 GMT

jk1002:

I agree. Its hard to say if lower prices would increase volume to a level that the cost would go down.

It might create other problems. B&O has probably adapted its production facilities quite well to the current volume. Any significant increase would need either investments in new factories (with what money?) or outsourcing production (which would result in an uproar).

Plus, I believe there are a number of customers that would lose interest after "everybody" has B&O in their homes.

Re: Thoughts about profits and pricing

jk1002 — Thu, 14 May 2009 23:34:44 GMT

I agree. Its hard to say if lower prices would increase volume to a level that the cost would go down.

Personally I feel that many customers as well as content providers do not appreciate picture or sound quality enough that it would reach that point.

I would love to see a cheaper BV7 but I just don't see it. If you follow carefully here, I think ther is quite a few of us who value picture&sound more then "Design" and built, mateirals used etc. That is why we have so many "how to run a Pioneer Kuro" with a BS3 discussions.

Personally, I care a lot about sound for music but on the same level I value design. I would never consider a Kuro over a BV7 but have budget constraints so I settled on a BV8 which I love for its design ..... took me a bit to warm up but at this point I certainly do ......

Re: Thoughts about profits and pricing

benjnz — Thu, 14 May 2009 18:00:36 GMT

I would argue Sony is in a worse state to ride out the current storm, definatelly in the electronics area, I think they may have cast their net of products a bit too broadly.

B&O however, if it concentrates on exactly what it says on the tin, should be ok, I hope :)

Re: Thoughts about profits and pricing

Puncher — Thu, 14 May 2009 17:37:56 GMT

Tough question! - can Sony see out the dip better than B&O??

All answers/opinions here please!

Thoughts about profits and pricing

Hardwriter — Thu, 14 May 2009 16:50:43 GMT

I've followed many of the posts recently attributing B&O's poor recent financial performance to its TVs. The argument put forward is they are too expensive and do not perform well enough for the price, but if B&O would only cut the price it woud sell more and be back in the black.

Seeing Sony post its first net loss today in 14 years - and quite a big one - I thought I'd ask whether Beoworlders think that's because it is charging too much for its TVs and PS3s, too? If Sony cut its prices would it sell more and be back in profit, too? Or is there a flaw in this strategy somewhere?

OK, I'm being a little sarcastic. But Sony's results show the consumer electronics world is tough place to be right now, whether you are at the high volume or low volume end of the market.