Originally Posted by h1a8
Fact 1: Very few people spend 1000 or more on UNIVERSALS.
Fact 2: Many times the people who purchase UNIVERSALS for 1000 or more purchase universals around 600 and less
Conclusion: Selling these universals for 600 or less will net a much larger profit.
You not knowing the truth doesn't mean I'm wrong.
You are exagerrating. 600 is doable since these don't cost anywhere near that to make. When you hit $1000 then people mostly think about customs (not universals). 700 for universals is a lot better and will definitely net more profit (not as much as 600 will though). It's not about double and triple but significantly more.
Prime example: On black friday a few years back, the tf 10 went on sale for about 100. They sold out in seconds. The Sony walkman Z had a killer price and also sold out in seconds. 600 or less for these shure will sell out faster than you can bat an eye.
h1a8, I'm with you on the marketing strategy/philosophy for those overly priced IEM.
No matter what the tiny IEM has very tiny of electronics and material used, so their actual cost could be just little to something only.
If we took Apple or Samsung for example, they sell phones in 10 millions qty on each top models. Ultimately the mega volume, they will bring down the shipment cost, transportation cost, labour cost and every costs in the chain. It's like travel in a cab from point A to B you alone cost $30. Travel the same distance in the same cab with 3 others and you, cost you only $7.50.
Originally Posted by Brooko
For a start - checking today USD 600 = ~ 385 GBP. If they retailed at USD 600 (as suggested by h1a8) then at ~ 380-400 GBP the 535s would now be sub 200 GBP (well under in fact).
Yes the 535s have fallen 'a little' - but again - economically - why would Shure drop the 846 to USD600. They don't need to. People WILL buy them at around USD 1000 - and they don't overly affect the rest of their range. Why - because the people who can't afford them will now see the SE535 as a bargain.
As far as suggesting 600 GBP - well actually you're not far off (today's rate around USD 940). By the time you take duty etc into account and maybe a street price around USD 1000 - I guess for UK customers it'll end up ~ 700-750 Stirling (street - not sure what your tax structure is on audio - could be more).
I'm not sure about your comment on things 'backfiring' on them. Their Marketing people will have taken this into account already. They are an international highly successful company. Like I said earlier - their strategy will be well thought out. And suggesting that "most people" would rather buy the 846 at 2-3 times the price of the 535 is a little naive don't you think? I'd love it - but it's currently out of my bracket. If I wasn't an owner of the 535 already though - I'd be jumping on the 535 at a reduced price point. It really is an excellent IEM IMO - and at around USD 350 - well worth it.
Come to think of it - their current strategy could be a master-stroke. Introduce new flagship. Accept discount (20-25%) on old range. Increase sales on both. Then start bringing in new tech across whole range in another 12 months or so. Can't see too much wrong with that to be honest. Better than bringing in new tech at discount that's not needed, crashing the price on the balance of your range, and overall lowering potential profits on both
Shure can pretty much selling the 846 at US$550, SE535 Ltd at 380, SE535 at 300.