What can be done to bring our electronics price tags to comparable global levels?

Dear all
There is a huge difference in the price of electronics here in india and elsewhere in the world. and the difference is not just "taxes /shipment charges etc".. some products are ridiculously charged 3x-4x times!

Ask a dealer and he would very well say " small market" etc..

More of us coming together inthis forum ( with a steady increase in numbers) is a sure sign that there is a vast untapped market for reasonably quality equipment.. provided they come at the fair "price" ( i did not say cheap, but i said a fair price)

Dear dealers: most of the people in this forum are internet savvy and do keep a track of product prices elsewhere in the world. Most of the guys also have the necessary dough ( within their budget ranges) to invest in decent systems.. but are put off by the exhorbitant price tags. people think that it is not worth their hard earned money to spend more for a product which costs less elsewhere.
If you reduce your prices ( probably renegotiating with your suppliers/shippers/ government) more people will be tempted to buy your products.. and the cycle would go on.

Forgive me if i am not aware of "ground realities".. could somebody continue this topic as a healthy debate? may be something positive will come out of this!

Hopefully this forum grows in strength and becomes the number one reference site for all music/HT lovers in india in the months to come.

Regards
Murali

It is good of Murali to bring up this topic as it is the bone of contention of every audiophile to be aghast at the price difference between prices in India vs. their overseas counterpart.

I have noticed that even the prices of speaker cables, interconnects and power chords being priced more than double their price overseas. Although the US$ has depreciated by over 10% against the Indian Rupee I fail to see this reflected in the local prices???

This is one of the primary reasons why so many audiophiles interested in buying high-end stuff take demos from local dealers here and then fly to Dubai/Singapore and buy their gear there for half the price!!!

Even Bose Soundock is available for half the price in Singapore when compared to India???

Why the HUGE DIfference???

On one of the other message boards, a dealer had explained at length why they are forced to charge the prices they do and it was a convincing argument but disappointing as it is clear the levies the Govt. imposes keeps their hands tied.

See the post I am talking about here (post #81):
http://www.hifi-forum.de/index.php?a...4&postID=81#81

However I think it is important to point out that certain dealers are doing a brilliant job of offering prices more than fair. Designer Audio in Mumbai for example offers excellent prices for the Wharfedale and Quad lines. FX Entertainment also has advertised very low, global-equivalent prices for Cambridge Audio and Mordaunt Short products but I have not dealt with them. I wonder how they manage but I hope others follow suit. Some brands in particular (I will not name them) are charging disgracefully high amounts and getting away with it - what a pity.

Hi,

I attended a meeting of the american music merchants association (NAMM) recently where I met exporters of American music instruments (guitars, drums, accessories). They said the Indian importers negotiate very hard with them, offering reasons such as high taxes and duties, small market, etc.

The truth is that for all these items (instruments, home and pro audio equipment) the customs duty, since March this year, is now 10% plus an additional surcharge of 4% on the total (stated value + 10% duty), to balance the VAT charged on local manufactures. The dollar has also depreciated in recent months, so the cumulative impact of the lowered customs duty and the weak dollar should drive down our prices.

Some more research is needed on this subject, but my preliminary conclusion is that Indian dealers' profit margins are unreasonably high, and they shift the blame on others for the high prices charged by them.

Regards/CC

>>Some brands in particular (I will not name them) are
>>charging disgracefully high amounts and getting >>>away with it - what a pity.

I agree about some brands being sold at disgracefully high prices, but I don't think the dealers are really successful in getting away with it. There are some people who can be 'sold' electronics and speakers at unreasonable prices, but most people end-up buying other brands. Whenever I am shortlisting an audio/video equipment the US/India price ratio is one of the important factors. The dealers who were relatively successful in the past in selling items at exorbitant prices would face the heat now, with more competition even in India. You would see more dealerships changing hands as companies realize that they are not selling as much as their global competitors in India because of a particular dealer/distributor.
I'm just being optimistic

Thanks,
Sharad

Greetings!!!

I am very glad to see the start of this discussion - a very passionate one, and one that will help us all clear some real doubts.

From some points already mentioned - the import duties for example - are incorrectly quoted and the sentiment seems to be one of feeling cheated.

I would appreciate some time to get back to you (with real figures) from the 'sellers' perspective.

At The Soundsmiths we pride ourselves in offering the best value at all price points. And, from someone whose first amplifier was a much scrounged for NAD 350 - I can assure you that I still consider MOST retailers selling at a reasonable price.

Best regards,

Veeryavanta

The Soundsmiths

Hi Veerya,
Thanks so much for jumping in!!
A discussion can only be as fruitful as the participants.. We need people from both the sides to share their views.
I personally would really love to hear your view point as a seller. I would also urge other "buyers" to put acorss their experiences!
As I said earlier, this forum will grow in strength in the coming months and now is the apt time to debate on "costs to own"
Best regards
Murali

Hi Sharad,

Your post really brought a smile to my face. I admire your optimism and hope you are proved right. Also good to know I am not alone in my tendency to check the global:local price ratio first.

Having said that, its made a bit difficult by the fact that dealer web sites usually do not indicate prices and it is a arduous process to get hold of the same.

It would be a welcome addition to this web site if there were a database of product prices and where to buy them.

The official product Indian prices are usually listed in the last few pages of AV-MAX.
"Street Prices" are however difficult to get. I usually check google.com/products sometimes to get street prices elsewhere in the world and add around 50% to that price to arrive at a reasonably "fair" indian street price.
Best Regards
Murali

Another thing to note while comparing prices:
Say a product manufactured in japan is sold in the USA at a price X. This price includes shipping costs from japan to usa, Japanese exit taxes, US entry taxes and dealer overheads and margins.
If you have to calculate the price of the same product in india (sourced from the same manufacturer in japan), we will have the following components: shipping from japan to india, japanese exit taxes, indian import taxes, indian dealer overheads and margins.

Ignoring the dealer margins, we can work at the following example for a product costing 1000usd in japan:

1) Cost in USA= cost in japan 1000 + japanese exit tax 100 + shipping to USA 100 + US taxes 50 = 1250usd.

2) cost in india: cost in japan 1000 + japanese exit tax 100 + shipping to India 200+ indian taxes 300 = 1600usd.

Notes: cost in japan implies cost at manufacturer for a bulk import deal ( cheaper than japanese on street prices)
All costs have been considered on the higher side for india.

The difference between US and indian on street prices still come to around 30 percent ( which is what sounds acceptable to me give or take another 10%)

Please feel free to correct me, if i have missed anything.
Regards
Murali