UK Price Rises

Sonos just added £100 to a 4 year old bit of kit, that is absolute business suicide.

The exchange rate was 1.5 back in Feb 2013 when the playbar was launched. Today's exchange rate is 1.25 - that does not equate to an extra £100!

This will go down in history. Almost comical.You are correct. It equates to £119.

And the forecasts for the pound and dollar is for this to improve As anyone with any understanding of currency futures markets could tell you, this is a nonsensical statement as it implies the scope for limitless arbitrage profits.

I'm not entirely sure why somebody felt it necessary to make snarky comments suggesting long time posters would be "celebrating" the price rise. And indeed I'm not sure why anybody would think that Sonos would be happy with having to make a very difficult commercial decision. But make it they have.

if the reason for the increase is down to USD/GBP exchange rate changes, then why do the prices not drop when the exchange rate goes the other way? Also why is the increase ranging from 15% to 25%, surely the increase would be the same for all products?

https://www.theguardian.com/technology/2017/feb/13/sonos-hikes-uk-prices-by-25-due-to-brexit

"Some of the company’s products are increasing in price by up to 25%, as a result of the collapse in GBP induced by the Brexit vote of June 2016.

“We pay for everything we make in US dollars,” the California-domiciled Sonos said in a statement. “Over recent months, there has been a significant change on the US dollar to GBP exchange rate. As a result, our existing pricing has become unsustainable and, like many other companies, we have to increase prices for all products priced in GBP.”

Sonos joins a growing list of technology companies announcing significant price increases following the vote to leave the EU."

if the reason for the increase is down to USD/GBP exchange rate changes, then why do the prices not drop when the exchange rate goes the other way? Also why is the increase ranging from 15% to 25%, surely the increase would be the same for all products?It's a commercial decision. Prices clearly cannot fluctuate day to day. And they will judge for each product what gives them the optimal (in the circumstances) mix of lost sales versus higher revenue per item. I have no idea whether they have done the right thing for their business. I have no intention of trying to defend it. But please, can we have criticism that isn't quite so ignorant of business than this?

In the retail world, old products (such as the Playbar which is 4 years old this month) depreciate in cost. That is how retail works..No it isn't. Profit maximising companies sell at the price where marginal cost equals marginal revenue. If that is the same price today that it was 4 years ago, then it's still the price they will sell it for. If competitor improvements mean the market will no longer support that price, then it has to drop. Sonos can charge what they want. We can all choose to pay it or not. That is how retail works.

Where's Ratty & Jgatie to celebrate the price rise and say how good it is? Lol. ;)

As a US resident, I couldn't care less about a price increase in a country my hometown bounced out exactly 242 years ago.

Nice try, though. :PAnd why should you? Also, @Alberto98 has so far demonstrated complete ignorance of basic maths, currency markets and retail pricing decisions. Or maybe just a determination to make mischief? Who might this be in disguise do you think?

Well .. that's Sonos dead in the UK then.

Shame, but not a huge surprise. Though the range in price hikes (16% to 25% depending on component) is a bit odd. Presumably the UK market is too small for them to be bothered and, as I've suspected for a while, they don't really want to sell connects and connect amps any more as they'd rather sell you the speaker part too (which I wouldn't touch, personally).

The pound has further to fall ("we haven't left yet" etc) and once Trump brings all manufacturing back to the US, the cost will soar some more (unless Americans are willing to work for chinese wages). Our only hope is that with the current incompetent incumbent in charge .. the dollar will soon collapse and prices will fall again.

Hey ho.

Sonos was getting uncompetitive anyway ....

Well, that's SONOS finished in the UK then.

Can't compete on price with the usual far east suspects. Can't compete on sound quality with the likes of Naim and Linn.

It's a shame but not unexpected; though the differential in price rises is rather odd: +16% for Play 1 etc but +25% for connect and connect amp. This may confirm my view that sonos don't really want to sell connects and connect amps any more as they really want you to buy their speakers too (which I wouldn't touch, myself).

I guess there is more to come as the pound continues to crumble (ie "we haven't left yet!") and if Trump persuades them to bring manufacturing back to the USA prices will doubtless soar (unless the US workforce settle for Chinese wages and conditions). Our only hope is that Trump's incompetence causes the dollar to collapse .. upon which SURELY the prices will fall again :¬) ... as if.

Meanwhile, Superfi have a Sonos sale on (can't sell it full price) so get in now if you're expanding.

£1800 for a 5.1 system that doesn't work properly unless you have a passthrough Tv ?

Glad i already have it, paid about £1300 and thought that was top end! At least i can show off to my friends about how expensive it is!

Hopefully the sales will get them back to a normal price, was hoping for a few more rooms set up one day but no I'm not so sure

We're coming to take America back - "Make America Great (Britain) Again"!
This ship has sailed... 😉

Product is made in Malaysia where the ringett has devalued against both sterling and US dollar. Old fashion price hike hiding behind "events outside our control". Absolute rubbish marketing but great products.