Emotiva Price Hikes

Todd Anderson

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Pretty sure this hasn't been discussed on the forum... but Emotiva has announced recently announced it's going to have to increase the cost of its products"

From Emotiva:

"We strive for transparency with our customers. When you buy a product from Emotiva, you know that you are getting the best performing audio component that we can make at an unheard of price. In other words, the biggest bang for your buck. To make that happen, we have a simple formula for coming up with our retail prices. We don't add in tooling cost, R&D, etc. Instead, we add a modest profit to our actual cost of goods and pass the savings on to you. Our internal mark-up is about half the industry average. Therefore, we don't have extra wiggle room for cost increases in our prices.

As you may already know, we've just had another tariff increase of 25% on imported Chinese made goods. When the first round of tariff increases happened a few months back, we absorbed the increased cost without raising prices as a part of our commitment to you, our customer. We will always try to preserve our incredible prices for you all, and we were proud that we were able to continue with business as usual despite the increase. However, this most recent change in policy has caused another significant increase, and we will have to raise our prices starting on July 1, 2019.

This price increase will be minimal, and something we must do to continue to provide you with the product and quality promised. The tariffs will also affect our made in the USA products as they are manufactured, like most brands, with parts imported from China. So, the impact is across the board for both the finished goods that we import and our products assembled in Franklin, TN.

As business owners and as consumers, we are all affected by the recent changes. We hope that these tariff increases are temporary and that we'll be able to reevaluate our prices in the future. Our ongoing mission is to produce quality products and deliver value. We appreciate your ongoing support, and if you have any questions, please contact 615-790- 6754."




I know this is a touchy topic because of politics... so let's leave politics out of the discussion... but this seems to be an inevitable action. So many of the ID companies we celebrate and support (and for good reason!) have thin margins that ride on the coattails of cheap manufacturing in China. I guess depending on how the US and China interact over the next year will play a huge role in pricing going forward.

I, for one, am super curious to see what Emotiva's "minimal" price hikes are.
 

thrillcat

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It's worth noting that they clarified after this was sent that the hikes would NOT apply to any processors, and a few other categories.
 

Todd Anderson

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Emotiva XPA Gen3 2.8 multichannel amp
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VSX21-THX
Universal / Blu-ray / CD Player
OPPO UDP-203, Panasonic UB9000
Front Speakers
SVS Ultra Towers
Center Channel Speaker
SVS Ultra Center
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SVS Ultra Surround
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SVS Ultra Bookshelf
Front Height Speakers
SVS Prime Elevation x4 (Top Front, Top Mid-Front)
Rear Height Speakers
SVS Prime Elevation x4 (Top Middle, Top Rear)
Subwoofers
dual SVS SB16s + dual PSA XS30s
Other Speakers or Equipment
Behringer 1124p; Aura Bass Shaker Pros; SuperSub X
Video Display Device
JVC NX7
Screen
Carada Cine-White 0 gain
Other Equipment
LG Electronics 65-inch B6 OLED, Sony 65-inch X900F
Was that posted on their forum?
 

thrillcat

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Jolida JD202BRC (2-channel system)
Universal / Blu-ray / CD Player
Sony UBP-X800
Front Speakers
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Center Channel Speaker
Triad InWall/4 Gold
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Triad InWall/4 Gold
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Mission 77ds
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JVC DLA X790R
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SeymourAV CenterStage UF 115"
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Here's the link. They also discussed it in a little more depth in their podcast last week.

5% increase, no processors, loudspeakers or subs.

 

Todd Anderson

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Emotiva XPA-5
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Emotiva XPA Gen3 2.8 multichannel amp
Other Amp
VSX21-THX
Universal / Blu-ray / CD Player
OPPO UDP-203, Panasonic UB9000
Front Speakers
SVS Ultra Towers
Center Channel Speaker
SVS Ultra Center
Surround Speakers
SVS Ultra Surround
Surround Back Speakers
SVS Ultra Bookshelf
Front Height Speakers
SVS Prime Elevation x4 (Top Front, Top Mid-Front)
Rear Height Speakers
SVS Prime Elevation x4 (Top Middle, Top Rear)
Subwoofers
dual SVS SB16s + dual PSA XS30s
Other Speakers or Equipment
Behringer 1124p; Aura Bass Shaker Pros; SuperSub X
Video Display Device
JVC NX7
Screen
Carada Cine-White 0 gain
Other Equipment
LG Electronics 65-inch B6 OLED, Sony 65-inch X900F
For everyone, here's what's on the link:

Just a quick comment to avoid any confusion or misunderstandings...

1. The XMC-1 Upgrade Program is not affected by the price increase.

2. Processors; RMC-1, XMC-2, and RMC-1L WILL NOT increase in price.

3. Loudspeakers and Subwoofers are unaffected by the tariff and pricing is unchanged.

4. Products that are affected, will only see a nominal 5% increase. We have absorbed the bulk of price increase internally.



Hiking those processors would really kill the vale the value proposition. Makes we wonder if they have significantly more profit built-in to that gear (obviously, they must).
 

thrillcat

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Location
Ames, Iowa
My AV System  
Preamp, Processor or Receiver
Anthem AVM60
Main Amp
Emotiva UPA-700
Additional Amp
Emotiva UPA-500
Other Amp
Jolida JD202BRC (2-channel system)
Universal / Blu-ray / CD Player
Sony UBP-X800
Front Speakers
Triad InWall/4 Gold
Center Channel Speaker
Triad InWall/4 Gold
Surround Speakers
Triad InWall/4 Gold
Front Height Speakers
Mission 77ds
Rear Height Speakers
Mission 77ds
Subwoofers
SVS PB2000
Other Speakers or Equipment
Definitive Technology BP20 (2-channel system)
Video Display Device
JVC DLA X790R
Screen
SeymourAV CenterStage UF 115"
Remote Control
Harmony Elite
Other Equipment
ProJect Debut Carbon Turntable (2-channel system)
It is likely that, as with the XMC-1, there is a price increase already planned down the road for processors. I believe the XMC-1 went from $1999 to $2499 after about a year and a half on the market.

Because they do most of their assembly in the US now, they may very well have a lot of parts stockpiled, pre-tariff, to get them to the planned increase.

The "planned price increase" is COMPLETELY speculation. The US factory is completely factual.
 
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