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Sennheiser is now up there with Shure as the companies that annoy me the most..
Except in Shure's case, especially IEMs, they only really have one competitor offering the same performance level product, and those are priced almost identically. So there's not much options, and that just sets the price point for that performance.
For full size cans, there's endless variety including superior options at lower prices.
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It's a "luxury brand" move - you don't see highly sought after luxury brands being heavily discounted through authorized dealers (at least not advertised online.) It hurts the brand. So Sennheiser decides to enforce MAP. In many situations, you can still get a good percentage off at a brick-and-mortar or by calling your dealer but Sennheiser cares about perception. I really don't like it but I understand where they are coming from.
Also, I've looked into this legally in the past. They're in the clear.
Exactly, it's a "luxury brand" move, but unfortunately, Sennheiser isn't seen as a luxury brand. Maybe in Germany they are, but not in the US. They're trying to be Bose/Beats/BMW/Apple, when they're just Sennheiser, they're "that company that makes some headphones." Nobody other than audiophiles going for the high-end cans, sees Sennheiser as a luxury lifestyle product. It's just another headphone company. It's a move that could backfire. The thinking is that if they set the pricing that way, they can suddenly become more desirable. But they're missing the competition (both poorer quality but trendier images, and better quality at lower prices) that are pushing them out the door.
I almost wonder if it somehow has more to do with Pro Audio (as tdockweiler mentioned, Shure is the other company notorious for this policy.) Both Senn and Shure are kingpins in the pro audio (micrphone) world. Maybe this policy is blanket applied but is more expressly for that purpose.
But there's no flipping way the 10 year old HD650 is worth $500. It's an excellent headphone, but it's not worth that price.
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My first question is: what have/will they lose in market share and market penetration with regard to the higher end models for which they are enforcing their MAP?
My second question is: is Senn nuts [x 2] initiating this during the worst recession of my nearly six decade life?!
In addition the HD 518 through 650 are gateway cans to there most expensive and (I dare to guess) their most profitable cans. Less gateway cans sold almost certainly means less high end cans sold over time.
All of this is even stranger with regard to the HD 600 and HD 650 which are aging classics.
I think they run the danger of losing a generation of beginning audiophiles by pricing the HD 5x8 line as high as they have. Just lowering the MAP price (assuming they will continue this madness) by $20 on each of these cans would be a big help.
I'd very much l like to know Senn's business plan and reasons for going to this hard enforced MAP--including the timing of it.
Agreed, in full. They are indeed appearing nuts. If it's not about pro-audio, I'm guessing it's a combination of Sennheiser mis-understanding their brand image (maybe they're idolized in Germany the way Sony is in Japan and wrongly assume that's their global image.) Or they're boldly trying to forge a new image simply by setting prices differently. Or they're looking for a buyout and need to "fix" the books a little by getting some funky numbers for doing so.
I mean, in the US, who is even selling Sennheiser at this point other than the audiophile dealers and places like Amazon. Sure Best Buy has the low-end IEMs. But the mass-market stores never carried much of their stuff, and the hi-fi crowd that goes to specialty stores will be savvy enough to know they don't want to pay those prices for those products. $500 for HD650 is hard to swallow. $1500 for HD800 is almost believable based on the competition but still a hard pill to swallow. $1000 for
HD655 HD700 is worthy to make Sennheiser a laughing stock.
They want to be Bose.