Magico A3 Price Increase - Effective Immediately

Mike

Mike

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From Magico - for immediate release:

Unfortunately, due to sizable increases in the overall manufacturing costs for the A3 - effective immediately the suggested retail price will increase to US$ 12,300/pair.

Existing A3 open orders, A3 Grilles and APOD8 will remain without change in pricing.




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I'm glad I was an early purchaser. I guess the early bird catches a break!

I'm still considering if I should purchase the Apods. I did order the grills at the time of purchase.

Thanks for the info
 
I feel the increase is justified with the increased cost of Aluminum and the fact they were probably priced too low to begin with. $12,300 is what they should have been priced at from the get go, for more reasons than one.

Congrats to all the lucky early birds for catching the worm (as Darrel said).

I have not tried the APods yet but man, the Mpods made a noticeable improvement with the S7's I have on demo.
 
Mark Jones said:
I feel the increase is justified with the increased cost of Aluminum and the fact they were probably priced too low to begin with. $12,300 is what they should have been priced at from the get go, for more reasons than one.

Congrats to all the lucky early birds for catching the worm (as Darrel said).

I have not tried the APods yet but man, the Mpods made a noticeable improvement with the S7's I have on demo.
Click to expand...

Mark, if the increase is justified because of aluminum prices, will all Magico speakers have a price increase? The pattern seems to be that shortly after a new speaker is released and there is a review or two out there, the price immediately increases. They usually point to material cost increases to justify it. I suppose this may be different, but this pattern has happened many times with Magico and I suspect customers have come to expect the practice. I'm not saying anything is wrong with it, but I am suggesting that this is a usual event.
 
Hi Peter,

Thank God Magico is trending towards Carbon enclosures now!

Good question, and I'm surprised increases with the other models were not included in today's announcement. The bottom line is the A3 at $9800 (a crazy bargain) has to be a slim Jim margin product. The demand is crazy overwhelming, add with the huge increase in Aluminum prices, you have Magico woking their butts off to fill orders yet making very little money. Like all businesses they have to make money, I have to make money, you have to make money. So the increase makes sense to me. Fingers crossed they can absorb cost increases for a while with the rest of their lineup.

Hope this made sense.
 
Mark Jones said:
Hi Peter,

Thank God Magico is trending towards Carbon enclosures now!

Good question, and I'm surprised increases with the other models were not included in today's announcement. The bottom line is the A3 at $9800 (a crazy bargain) has to be a slim Jim margin product. The demand is crazy overwhelming, add with the huge increase in Aluminum prices, you have Magico woking their butts off to fill orders yet making very little money. Like all businesses they have to make money, I have to make money, you have to make money. So the increase makes sense to me. Fingers crossed they can absorb cost increases for a while with the rest of their lineup.

Hope this made sense.
Click to expand...

Agreed and well said.


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PeterA said:
... The pattern seems to be that shortly after a new speaker is released and there is a review or two out there, the price immediately increases. They usually point to material cost increases to justify it. I suppose this may be different, but this pattern has happened many times with Magico and I suspect customers have come to expect the practice. I'm not saying anything is wrong with it, but I am suggesting that this is a usual event.
Click to expand...


Is that true? Can you please give an example, I am not aware of any recent price increase on any current models, but I may be wrong.
Also, is there a review on the A3 that I missed? I do agree, a 25% price increase is a bit much, but it is still a lot of speakers for the money.
 
I have no idea what the profit margin is on the A3's. And the increase may be as stated for price increases in material, manufacutuing etc. But, I do know something about aluminum and composite material. I worked aluminum for forty years. And composite for about ten years. The A3's uses 1/2" thick 60601 t6 plates. 60601 aluminum is actually a low end aluminum. Almost never used on aircraft. And manufacture companies who know their demand will order plates in lots. Meaning if they need 500 plates to build x number of product. They will order that amount or adjust depending on forecasted needs or price increases. Magico had to know from their sales how much to order for some time.
 
PeterA said:
Mark, if the increase is justified because of aluminum prices, will all Magico speakers have a price increase? The pattern seems to be that shortly after a new speaker is released and there is a review or two out there, the price immediately increases. They usually point to material cost increases to justify it. I suppose this may be different, but this pattern has happened many times with Magico and I suspect customers have come to expect the practice. I'm not saying anything is wrong with it, but I am suggesting that this is a usual event.
Click to expand...

For the record, Alon is one of the most transparent people about the cost of his speakers and has shared that info with me. I’d guess Magico has one of the lower profit margins of any high end speaker company.

It’s important to understand that Magico’s A3s use a completely different business model than the other speakers. Magico kept the speaker’s cost low by committing both a sizable amount of money AND to building a sizable number of speakers up front. So in essence, the A3 is the lowest margin of any Magico speaker and Alon intended to make their “lesser” revenue in sales volume. Not unlike—though nowhere near the number—Japanese companies. That included saving money by having another company do the cabinets to save money. So any sort of price disruption in costs such as Al would affect the A3 more than the other Magico speakers. Conversely, it says that Magico at least for now is eating the increased cost on their other speakers.

Frankly, I am surprised that we haven’t seen upticks in the costs of electronics. I spoke to several electronics manufacturers about the tariff ramifications and they were waiting to hear from their suppliers about price of Al for chassis’. Most expected a 12% increase in Al and I suspect many ate that cost hoping that things would eventually straighten out. But don’t be surprised to see more price increases for products using Al, etc down the road.
 
I don't get it. I just looked at the market sales charts for Aluminum and don't see the increase.
6 month prices are down as are one year.
What am I missing?
 
jadedavid said:
I don't get it. I just looked at the market sales charts for Aluminum and don't see the increase.
6 month prices are down as are one year.
What am I missing?
Click to expand...

Supply & Demand. And Magico speakers are a lot more than Au. Drivers, labor, etc. The entire supply chain.

Tried hiring someone lately? I have. Labor costs are way up, as are many other costs.
 
Mike said:
Supply & Demand. And Magico speakers are a lot more than Au. Drivers, labor, etc. The entire supply chain.

Tried hiring someone lately? I have. Labor costs are way up, as are many other costs.
Click to expand...


+1

"...due to sizable increases in the overall manufacturing costs for the A3"

Who said anything about aluminum?
 
Mike said:
Supply & Demand. And Magico speakers are a lot more than Au. Drivers, labor, etc. The entire supply chain.

Tried hiring someone lately? I have. Labor costs are way up, as are many other costs.
Click to expand...

Magico is in the San Francisco Bay Area, which is one of the highest cost of living areas in the country.
 
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