Skip to main content
Contributor I
February 13, 2017

UK Price Rises

I was very disappointed to be informed of the Sonos price rises in the UK. Although the dollar rate is blamed it doesn't account for why the products are much cheaper in some countries? £100 rise on the Sub and Playbar is just too much. I am very lucky that my system is now pretty complete but think UK sales will suffer
    This topic has been closed for further comments. You can use the search bar to find a similar topic, or create a new one by clicking Create Topic at the top of the page.

    131 replies

    Prodigy II
    February 17, 2017


    I'm not "missing" anything. You mentioned it, so I'm questioning it. If it isn't important, why bother mention it in your post? Also, my research shows a lower import duty on speakers from Malaysia into the UK.


    I mentioned it as speculation. If I was wrong, so be it, you caught me. Alert the internet police!

    But in reality, it has about the significance of a gnat's behind on a £18-20 price difference on items costing £500+, and complaining about it is the very definition of missing the forest for the trees. My main point about comparing prices which includes VAT with prices which do not include state sales taxes still stands, regardless of the nits you choose to pick.

    Didn't take to long for the answer to that question to surface, lol.

    Did I date your sister or something? At least the other complainers knew when to give up after being shown the current UK pricing is right in line with US pricing.


    Talk about missing the forest for the trees. The issue here is a significant price increase. Nobody, no matter where they live, likes a price increase. It is quite common for people, no matter where they live, to complain about rising prices. Frankly, I doubt that the residents of the UK shopping for now-more-expensive Sonos gear care what the US pricing is. I certainly do not, because I do not, nor have I ever, lived in the US. As others have pointed out, what should be more relevant are exchange fluctuations between the ringgit and the UK pound, since the products are made in Malaysia and presumably exported to Britain. Over the past year there hasn't been much change, although there have been significant fluctuations.
    jgatie
    February 17, 2017
    And yet, the original comparisons by the most vocal complainer were using the USD/GBP exchange.

    Also, the ringgit comment is incorrect, if you believe Sonos' official statement:

    “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.”

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

    So, forgive me for working with what the most vocal commentators were stating, not to mention Sonos' official statement.
    Prodigy II
    February 17, 2017
    And yet, the original comparisons by the most vocal complainer were using the USD/GBP exchange.

    Also, the ringgit comment is incorrect, if you believe Sonos' official statement:

    “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.”

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

    So, forgive me for working with what the most vocal commentators were stating, not to mention Sonos' official statement.


    Actually I don't believe that they pay for everything in US dollars, unless they mean they pay in US dollars before buying Malaysian currency. Sonos has offices in Malaysia and produces in Malaysia; I am sure they know full well how to play the currency game. And they would almost certainly have a hedging strategy. But Sonos is a private company, so we'll never know, will we? However, they would not be astute business people if they did not take advantage of the fact that Malaysian currency has not suffered the same exchange variations as the pound, relative to the US dollar.
    jgatie
    February 17, 2017


    Actually I don't believe that they pay for everything in US dollars, unless they mean they pay in US dollars before buying Malaysian currency. Sonos has offices in Malaysia and produces in Malaysia; I am sure they know full well how to play the currency game. And they would almost certainly have a hedging strategy. But Sonos is a private company, so we'll never know, will we? However, they would not be astute business people if they did not take advantage of the fact that Malaysian currency has not suffered the same exchange variations as the pound, relative to the US dollar.


    Doesn't mean squat to the fact that my replies were directed at the folks making comparisons between US pricing and UK pricing. Are folks in the UK justified in being ticked off at such a large increase? 100% yes. Are there shenanigans going on with Sonos' statement? Who knows? Does the ringgit/USD exchange figure in? Probably.

    But, is comparing the US list price vs. the UK list price an accurate comparison without figuring in VAT, considering any sales tax in the US is applied by the states at time of purchase? 100% no, and that was the only point I was making. I stand by that point. The rest matters not one whit to me, the Brits can argue about it themselves.
    Prodigy II
    February 17, 2017
    I am even less inclined to believe the "we pay for everything in US dollars" line is the sole reason for the price increase now that I've done a little more research. Sonos gear may appear to be "manufactured" in Malaysia, but I am betting it is assembled there, largely from parts made in China. A look at Sonos job postings indicates the company has contract manufacturers in China. For example, this job posting, for a position in Penang, Malaysia, said: "This is a critical leadership position on the Sonos Manufacturing Operations team located in Penang and will be reporting directly to the Director of Manufacturing Operations. The materials team is responsible for overall material supply line and inventory risk management in the Sonos’ Contract Manufacturing (CM) Factories in China." And "Develop and execute the right material strategy and inventory model for Sonos business with our Contract Manufacturers in China." There's nothing wrong with that--everybody manufactures in China these days--but it does take some of the edge off the dollar-pound argument. BTW, the Chinese currency has been falling against the US dollar recently.
    CreditSuisse seems to think Sonos manufactures in Taiwan. "Inventec Appliances Corporation (IAC) was founded in 2000 and is headquartered in Taipei, Taiwan. It was consolidated into Inventec Corporation in 2011 and is now a wholly- owned subsidiary. IAC designs and manufactures handheld and wireless devices such as smartphones, tablets, MP3 players, GPS navigation devices and smartphone accessories. Wireless devices include wireless speakers, SOHO routers/switches, wireless AP and smart home devices. The company's key customers currently include Xiaomi (smartphones, tablets and smart home devices), Huawei, (smartphone), Sonos (wireless speaker), Tom Tom (GPS), Nest (smart home devices) and Verifone (POS). Previously, they manufactured Apple's iPod and their Newton PDA.
    Sonos: wireless Hi-Fi audio products
    Sonos is a California-based electronics company selling Hi-Fi wireless audio products. The company was founded in 2002. Inventec has been its primary manufacturing partner since the company was founded.
    jgatie
    February 17, 2017
    As I said, I couldn't care less about all that. The only reason I posted what I did is if you are going to compare prices between two countries, at least make it an apples to apples comparison. If one wants to get into the economics of all that BS, feel free, but count me out. I've already wasted far more time on a cut-and-dried fact than I needed to, never mind reading that minutia. I don't care what the freaking price is in the UK, as I stated in my first post.
    Prodigy II
    February 17, 2017
    As I said, I couldn't care less about all that. The only reason I posted what I did is if you are going to compare prices between two countries, at least make it an apples to apples comparison. If one wants to get into the minutia of all that BS, feel free, but count me out. I don't care what the freaking price is in the UK, as I stated in my first post.

    There are others reading this thread, who might be interested. Your continued involvement or lack of involvement in this discussion is immaterial. Feel free to not be interested, or to not care what the price is in the UK, or to be counted out. The original poster was not comparing UK and US prices. The message said: "Although the dollar rate is blamed", in reference to the fact that Sonos did just that. He did not start this discussion by comparing prices in the two countries, but by lamenting a price increase in the UK and the fact that "the products are much cheaper in some countries."
    jgatie
    February 17, 2017

    There are others reading this thread, who might be interested. Your continued involvement or lack of involvement in this discussion is immaterial. Feel free to not be interested, or to not care what the price is in the UK, or to be counted out. The original poster was not comparing UK and US prices. The message said: "Although the dollar rate is blamed", in reference to the fact that Sonos did just that. He did not start this discussion by comparing prices in the two countries, but by lamenting a price increase in the UK and the fact that "the products are much cheaper in some countries."


    My replies were to those (particularly alberto98) who were posting about the disparity between US and UK list prices. As such, they were on-topic and to the point. Up until then, I never said anything in this thread beside a humorous reply to a cheap shot attack. Why you are trying to make my posts out to be an attack on the OP, a statement on the right of others to be angry, or anything else other than to clarify an oft seen mistake due to included VAT vs. excluded state tax, I'll never know.

    Go ahead, have the last word. I've spent far too much time on your BS. :8
    Prodigy II
    February 17, 2017

    There are others reading this thread, who might be interested. Your continued involvement or lack of involvement in this discussion is immaterial. Feel free to not be interested, or to not care what the price is in the UK, or to be counted out. The original poster was not comparing UK and US prices. The message said: "Although the dollar rate is blamed", in reference to the fact that Sonos did just that. He did not start this discussion by comparing prices in the two countries, but by lamenting a price increase in the UK and the fact that "the products are much cheaper in some countries."


    My replies were to those (particularly alberto98) who were posting about the disparity between US and UK list prices. As such, they were on-topic and to the point. Up until then, I never said anything in this thread beside a humorous reply to a cheap shot attack. Why you are trying to make my posts out to be an attack on the OP, a statement on the right of others to be angry, or anything else other than to clarify an oft seen mistake due to included VAT vs. excluded state tax, I'll never know.

    Go ahead, have the last word. I've spent far too much time on your BS. :8


    Wasn't it you who said above: "So you are welcome for the price break, while we here in the states were paying what you are finally paying now!" Does that sound like a friendly, non-partisan response to anything? It sounds more like a Sonos shill. It's usually the person giving who says "you're are welcome." That would be Sonos, would it not? (Assuming you were correct, although I'm not convinced you are.)
    Ryan S
    Retired Sonos Staff
    February 18, 2017
    Let's take a break from fighting other community members here. I know this is a hot topic, but there's no need to attack other posters.

    The price increase is due to the change on the US Dollar to GBP exchange rate. The existing pricing had become unsustainable and you'll see other companies adjust prices in this same manner. The price increases aren't a straight percentage as they were rounded towards the closest logical price, so you will see that the percentage increased differs slightly per product.
    Mark good posts by pressing the like button, and select the best answer on questions you've asked to help others find solutions.