Curious: Dollar is Strong Against the Euro, European Audio Products Cheaper?

[MarinJim]

As title says. I have not seen a decrease in Euro audio product prices. But when the Euro was stronger, their prices did rise.

 

[caesar]

Unfortunately, I don't think so. High end audio is a luxury industry, whether people believe it or not. So many people feel good about themselves when they pay more. It's like a self esteem boost. So regardless of relatively moderate currency adjustments, they will instead keep going up.

To me, a more interesting question is what would happen with increasing stock market volatility we have had recently, and if we were to enter a long term bear market.

 

[andromedaaudio]

In 2008 the $ went up during the crash by a large amount around 20 -30 % iirc as a safe haven for investors i think we ll go into a bearmarket this month

 

[caesar]

In 2008 the $ went up during the crash by a large amount around 20 -30 % iirc as a safe haven for investors i think we ll go into a bearmarket this month

Yes, if it's not this month, it will be soon. And I wonder how long it will last. A long one could badly hurt this hobby.

 

[andromedaaudio]

If you google harry dent you get some interesting demographic background on the cycles of life and economy , according to him it ll be after 2020 for the market to swing up again.
The biggest marketdrops Always occur in sept oct .
And dont worry he sees a strong us $ the coming time and low commodity prices (cheap gas ) low demand

 

[MarinJim]

And when interest rates start creeping up again? Will the coastal real estate bubble burst? Average home in the Bay Area is 1 million $.

 

[dallasjustice]

Smart importers should take advantage of the situation. I know the dollar has risen way more against the yen since Abe was elected. Did Phillip O'hanlon actually reduce prices on his Luxman gear? I'm not sure. Some importers think keeping prices excessive increases their product's prestige. Sometimes that makes sense. But in this situation, it's foolish, IMO.

Audiophiles are always looking for ways of getting around the importer's markup. So it makes a lot of sense for importers to take new exchange rates into consideration when pricing their products.

 

[taters]

Smart importers should take advantage of the situation. I know the dollar has risen way more against the yen since Abe was elected. Did Phillip O'hanlon actually reduce prices on his Luxman gear? I'm not sure. Some importers think keeping prices excessive increases their product's prestige. Sometimes that makes sense. But in this situation, it's foolish, IMO.

Audiophiles are always looking for ways of getting around the importer's markup. So it makes a lot of sense for importers to take new exchange rates into consideration when pricing their products.

Since the volume of sales of high-end is so low, the last thing they would do is reduce prices.

 

[dallasjustice]

Since the volume of sales of high-end is so low, the last thing they would do is reduce prices.

That depends on the product value. Ask Devialet if they are selling low volumes.

 

[dallasjustice]

The Yen has lost almost 40% of its value against the dollar since Abe was elected in 2012. That's stunning.

If you import Japanese gear it's a double edged sword. You have a lot more room on price than before. If you keep your prices high, the incentive now to buy gear "grey market" from Japan is pretty overwhelming.

I love Luxman gear and I've bought my fair share from Phillip over the years. I just think its interesting that Luxman prices haven't been cut in the US since 2012. Looking at the m900 and now m900u, it's price has gone up slightly since 2012. Has Accuphase reduced their prices?

 

[marty]

The Yen has lost almost 40% of its value against the dollar since Abe was elected in 2012. That's stunning.
?

OK, Michael, you've got my attention so although its off topic, I just have to ask: Please clarify- exactly who is "Abe?"

 

[NorthStar]

Abraham Lincoln? (-;

* https://en.wikipedia.org/wiki/Shinzo_Abe

 

[FrantzM]

Unfortunately, I don't think so. High end audio is a luxury industry, whether people believe it or not. So many people feel good about themselves when they pay more. It's like a self esteem boost. So regardless of relatively moderate currency adjustments, they will instead keep going up.

To me, a more interesting question is what would happen with increasing stock market volatility we have had recently, and if we were to enter a long term bear market.

This is one of the few times I absolutely, entirely, wholeheartedly, ... (add your adverb of choice that is a synonym of "completely"), agree with you. Prices will not go down a cent ..

 

[dallasjustice]

OK, Michael, you've got my attention so although its off topic, I just have to ask: Please clarify- exactly who is "Abe?"

He's Japan's president. He promised to reinvigorate the stagnant Japanese economy by devaluing the Yen. Some folks think it worked and others don't agree. But the plan was to boost Japanese manufacturing and exports. Abenomics.

When comes to currencies, politics is never off topic.