The Cost of US Products Overseas

I love it. Armchair quarterbacks.

I remember going through analysis of pricing and using examples, like B and W, who have fairly consistent pricing throughout the world. They (and many other European and UK based companies) do that by jacking their domestic price way higher than
it could be, then allowing a larger discount to their importers, thus keeping their pricing standards. Their domestic market pays the price, but since everything is relative, people don’t complain. Now it appears the playing field is “fair”.

It is not fair. That is an illusion. It is even, but someone’s paying the price.

We have taken a different tact and our pricing is more uneven as a result. Our domestic market is 70% of our sales (a typical ratio for companies varying between 30% and 40% of total sales). It seemed overall fairer to have 70% of our customers
paying lower prices at the expense of the remaining 30%.

Any way you slice it, there’s a cost involved that has to be met.

It’s not like we’re rolling in profits as Rudolph would suggest.

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Clear Paul,

Not an armchair quarterback, a high EURO paying overseas customer. That is what I am.

An overseas customer of whom you seek to spend 43% mark up on the Stellar Strata on top of the original native MSRP. The MRSP being already nearly double the cost of the SGCD and which last year before you went direct still included 60% margin for the chain that gets the product from your factory to the consumer. That was tought to me by PS Audio people.

I am telling you that this overseas customer is not paying that mark up.

I assume by the reactions I get (mostly US reaction by the way) that others are happy feeding your system that way, good for PS Audio.

Yes, both ways have good reasons…I guess for you it’s just a little harder to get distributors and dealers in other countries, as their business will be more affected by grey market deals than those distributing products with more standardized prices.

But maybe it’s no problem generally to get good distributors…then those just have a little more difficult business with brands like PSA due to more customers looking for better prices aside this distribution line.

Great. Makes total sense. Don’t buy it. What is your goal, then?

I think that sentiment has fallen on deaf ears several times already.

No doubt. I never cease to wonder though.:man_shrugging:t2:

I think the real price gougers are Koenigsegg and Bugatti! Have you seen the overseas prices of those things? It’s crazy. I can’t believe it is allowed! :grin: :exploding_head:

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The DS DAC is cheaper in the UK now than it was when I bought it back in 2014 and the same when I bought my 2nd DS DAC in 2016… I thought the DS was outstanding value for money back then - it is ridiculously great value now given the lower selling price and several codes from TED… The DAC the DS supplanted cost me £11,000. I bought two DS DACs for the price of the Linn Klimax DS – “built 85 miles from where I live”…!

Rudolf was annoyed at the cost of the SPP and said it was overpriced - priced above the Stellar range. He could be right. But even if that is true, the SPP is priced at £2,500 in the UK; by all accounts an incredible phono amplifier and regardless of cost/competitors … As I see it, £2,500 is cheap for a product if it’s that special ! I have spent much more than £2,500 on phono amplifiers. I buy for the performance of a product not by how much it cost to build! That never goes through my mind.

But it’s all relative. I am in a fortunate position that I can indulge myself buying audio gear and not be constrained by cost. All I ask is that the product(s) work consistently – and as advertised, that I get what I paid for…!
Supply / Demand: It is more difficult to sell-on and/or get deals on PS Audio products in the UK because they just aren’t a popular brand… As I’ve said before there is nada dealers at this side of the border. That’s how popular the product is! If the dealers didn’t add a sizable markup on the products they wouldn’t sell the product. It’s a niche market. If the products were priced lower in the UK there is no guarantee the dealer would sell that many more units. Recently I have been buying British equipment - it isn’t any cheaper…!

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The 43% over MSRP (US) were on the Stellar Strata.
By a dealer that is located in the hart of Germany who sells the complete range PS Audio products. Not some kind of special to them.

Linn is indeed sinful expensive and lacks tube hybrids and DSD compatibility. But their fully balanced excellent sounding Uphorik phono stage is hundreds of EURO’s less expensive, till today I have to read a report of a comparison between those two high end phono stages. Primare top of the line phono stage (balanced output only) but top quality is EUR 1500,—.

Never mind, choices enough.

Primare offers even DSD 256 DAC and streaming from local USB disk, Roon ready or license free own software, airplay compatible and the whole enchilada in a tank strength high precision enclosure with power amp modules. Oh and they offer a similar looking high quality / compatible CD transport too.

Does more than one person even care?

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Some people get pissed if they think they are being ripped off. Fact is, in the UK it is £3,000, so is competing with Hegel H190 and Auralic Polaris. The Quad Solus is cheaper but slightly less power, but not much. The Strata is competitive, but may lose out to European brands with better local reputation and distribution.

There are some things in the standard narrative that need changing. It is referred to as a 200w amplifier, but in the UK almost everything is stated into 8 ohms, so it is a 100w amplifier. Saying it is 200w will really annoy people. Secondly, referring to the I2S connectivity to a spinner is self-defeating because in the UK it is not used and all it does is highlight that It does not contain a disc spinner, whereas competing products from Quad and AVM do.

Thanks Steven:

Stellar Strata, 3 significantly different price levels:

In USA:
2,990.00 US$ + 7% sales tax = 3,200.00 US$ ~ 2.780,00 EURO incl. sales tax

In Europe, UK:
3,000.00 GB£ Incl sales tax ~ 3.510,00 EURO incl. sales tax

In Europ, EU:
3.990,00 EURO incl. sales tax

@Paul, so still think this is normal?

Is UK receiving a Brexit discount?

Or

Are the units first shipped to the UK then personally picked up by the EU importer in the UK and hauled over to Germany one by one? Makes me think of Mark Knopflers “Why Aye Man”

Or

Does SG Akustik in Germany publish a wrong price?

I think I would complain about if it was me. :thinking:

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You could just order online from the UK, e.g. here:
https://www.iglooaudio.co.uk/psaudio.html
Would save quite a bit of money.

I see there is a new Hegel H120 at 75w/8 ohms for £2,200, about 25% cheaper, class A/B.

He’s not going to buy anything so no need to provide him links. He’s been singing this same song for well over a year on multiple products. Not so sure why it is so hard to understand the difference between the pricing for direct sales vs cross Atlantic distribution.

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I understand it costs a bit more but not 43% of the MSRP. That is ridiculous as you can see for the UK costs.

Also I complain since a year because it is Paul Mc. Gowan himself who advertised the Stellar products in countless as intended for customers who do have to watch their budget.

So I bought the Stellar Gain Cell DAC for full EURO cost.

But after that and since the release of the M700/S300 and SGCD, which are all in the 2.000,00 EURO range, all new Stellar products were released in the 3.200,00 to now even 4.000,00 EURO range. Within 1 year!

The customers who bought into the Stellar concept because of their budget have certainly not seen their income increasing by 100 %.

Is there something you do not understand about these concerns or do you just have fun making people who need to look out for their budget look stupid.

I do cross Atlantic business since 25 years working for both US and EU companies and I have never seen these differences neither have I ever met a purchaser who did not complain about the cost.

I have bought and paid full EURO for my Stellar Gain Cell DAC so it’s also not true that I don’t buy PS Audio products, that is pure gossip.

And what do you care being in the states not being confronted by the negative effects of the insane export fees, and apparently don’t need to watch you budget either.

Which is fine by me, but I don’t make you look stupid just because you do not have to watch your budget.

What you cannot seem to comprehend is the cost difference works both ways but since it doesn’t effect you the other way around it doesn’t fit your argument. And you still don’t understand the difference in the pricing models or currency valuations. It is also not our issue that the US doesn’t charge VAT. You have been advised many times by forum members in the EU to just buy EU and UK products and move on. Not only are they cheaper for you you also get better service and don’t have to deal with the problems caused by converting 120 volt gear to 220 volts. You are never going to win this crusade so just move on. You just apparently don’t have anything better to do with your time.

Apple, ELAC and many others manage keeping the price levels and service much more equal. I do comprehend it goes both ways but in neither case 43%. Apparently only PS Audio makes their overseas customers pay for their domestic marketing and sales costs.

No, PS Audio’s overseas customers pay their fair share of actual costs - without the domestic market subsidizing overseas customers. Typically the domestic market helps pay for overseas sales. PS Audio does not do this.

But whether or not you believe this, do not buy any product the product if you feel it is unfairly priced. You have many, many options in your part of the world.

Buy something you are happy with and move on.

You keep trying to use products manufactured in China as your example. Those products never make it to the US before being sold in the EU. A completely irrelevant argument.