Why are Indian prices for Speakers high for only some brands? a comparison.

jagdish_p

Active Member
Joined
Dec 8, 2008
Messages
634
Points
43
Location
Hyderabad
View attachment 9246In my search for a new set of speakers I collected the below price Info which I thought I should share.
Also should I opt for only those brands where Indian price is near to International - assuming that they sound good?
Disclaimer: The prices have been picked up from the available information on the net (Amazon, Crutchfield, Indian sites selling online) very few are actual quotes. However I feel the variation will be minimal and hence can be used or comparison.

PS: How do I post a Table directly from an xls sheet with out the formatting going haywire?:mad:
 
Last edited:
Jaga,

Good Piece of work:). When we talk what makes the Hike in speakers (Some times double) on Foreign brands.
For Example if a Company has a production unit in England, and one of their speaker is imported to India. What are all the facts decides the price?Below some Maths:)

Fixed Cost\Dealer price(Not MRP)+Packing+Shipping+Import Duties+ Handling charges +Indian Dealer profit = MRP of the Imported speakers in India.

our Quest was Why there is variation in Price, So what are the factors decide the price variations

SHIPPING AND HANDLING
1. Size - Normally the size of FS would be much more copmared to BS, so the Extra charge will be added and FS will be more priced in Avg compared to BS.
Big SIZE=Big Cost
2. Weight-Though we say BS\FS, all speakers does not weight same, Some small speakers would weight heavy and some FS weights normal.

So Extra Weight=Extra Cost

3. Quantity
Though 100's International manufactures speakers and say 20-30 has their dealer available in India and ample of Speakers Models are available, The dealer will import only the Models which could be sold in Indian market.

So If there is High demand-->High Quantity import made-->High quantity(BULK Purchase) done-->This reduce the Margin of Dealer price due to Reduced Shipping-->As the Dealer Margin decrease the MRP also get decrease (Fixed reasonably by dealers calculating the Profit)

This is my understanding regards to the Imported SPEAKERS price variation.



Lot would argue that we are Paying 20-40% Extra than the Original cost, Instead for same cost get a Hi-end Audio from Indian Brands or DIY with pretty low cost
 
Audio Freek
My observation is that the High Indian price is uniformly high for certain brands regardless of their being Floor Standers or Book shelves. So weight is not the main reason for high prices.

For Ex: B&W speakers are 1.5 times , HECO - Victa, Matas are 1.7 to 2.0 times international prices.

The other reason - Total Quantity being imported might affect the landed price but then the reason why the quantity is low could be due to High Sale price- shouldnt the dealer drop the prices and make them competitive to increase the quantity?

All the speakers are made in China and I am assuming that Indian Imports are direct from China
 
Last edited:
Def-tech prices are almost 1.5 times of the international market price. This will come down only when we have more than one distributor.
 
Audio Freek
My observation is that the High Indian price is uniformly high for certain brands regardless of their being Floor Standers or Book shelves. So weight is not the main reason for high prices.

For Ex: B&W speakers are 1.5 times , HECO - Victa, Matas are 1.7 to 2.0 times international prices.

The other reason - Total Quantity being imported might affect the landed price but then the reason why the quantity is low could be due to High Sale price- shouldnt the dealer drop the prices and make them competitive to increase the quantity?

All the speakers are made in China and I am assuming that Indian Imports are direct from China

When there is demand for particular BRAND, the dealer will import high Quantity.

When you talk about Tannoy or B&W or Heco or Definitive ,the entry level Speakers itself starts from 250$ on average and above so the users of these speakers in India should be low compared to MS or Kef, Paradigm,Mission etc.
When Less demand= Less Quantity=High Shipping cost= High MRP.

When users raise the price can come down
 
Also should I opt for only those brands where Indian price is near to International - assuming that they sound good?

Opt for the speaker that sounds good to you. If you want to be sure to have the best for your money without paying for all the other factors listed above, buy speakers from some Indian maker or go for DIY.
 
Fixed Cost\Dealer price(Not MRP)+Packing+Shipping+Import Duties+ Handling charges +Indian Dealer profit = MRP of the Imported speakers in India.

Add rentals - of showroom ; godown etc ( some have own ,legacy owned premises)
Add his cost of operation - demo persons , support staff etc..

Most important - dealers relations with customs

and

I heard many delers use export setback for import ( don't know what it is technically called ) ie export houses are officially allowed to import with reduced duty.Some dealers are exporters (other business) ,or have partnerships with exporters . They will be off course able to keep prices low.
 
Many of the brands mentioned above are assembled at china. Hence their cost got reduced . It is well known that Dali Ikon 6 MK2 and Helicon series are assembled at their denmark factory and they are costly when imported . However their other spekers are assembled at their chinese outlet and cost less. Heco, canton and other German / European speaker manufacturers do not concentrate on global market and many of them do not have assembling units in china . Because of heavy taxes and import duties in India they cost twice when imported from those distant places.
 
Yes Brands like KEF,Polk,Morduant.PSB have almost same or lower pricing in India. Probably direct import from China and lower logistics costs with in India makes this possible.
 
Yes Brands like KEF,Polk,Morduant.PSB have almost same or lower pricing in India. Probably direct import from China and lower logistics costs with in India makes this possible.

just wondering , are u comparing the company's mrps or actual selling prices abroad and in india.

because even if ur observations may be right, comparing actual selling prices would be a better indicator.

i only have polk to compare and if u compare their mrps in the usa and in india they are almost the same, as you observed. but no one buys them at mrp in the usa, they go regularly on sale most of the year and sell at 30 to 50 % less. here there is no such thing as a sale for them , the best i could ever manage was 15% off the mrp. the same for onkyo if u compare the mrps there wouldnt be much difference, but comparing the actual selling prices gives you an entirely different picture.

actually this is not unique to india almost all companies have different pricing formulas for different countries and u can compare a specific product in the usa, germany, uk, india and china, amazon will give u a easy way to do so and u will be surprised.
 
Most of the comparisons are based on Amazon, Crutchfiels prices. Yes you do get super discounts in USA for a limited period. But I did not consider these heavily discounted offerings.

Add Tannoy to teh list of similarly priced speakers in India
 
Opt for the speaker that sounds good to you. If you want to be sure to have the best for your money without paying for all the other factors listed above, buy speakers from some Indian maker or go for DIY.

+1 to the DIY route.
For the same price, DIY speakers may sound better than the branded speakers about twice the price, if designed right.
 
so then does it make sense and is it worth the risk to order them online and get them shipped to India and pay the customs duty?

In such a case will the local dealer help in case of any issues during warranty period?

Does anyone have any experience to share on this good/bad..
 
prices are set by the distributors.... some are greedy, some are not....

B&W sells to US and india from uk... they charge 1.5-2 times as much as the us price...
Usher sells to US and india from taiwan... their india price is less than the US price.

Distributor gets the piece at a much lesser cost than whats stated as mrp anywhere in the world... the profits are inbuilt... shipping and customs are there pretty much everywhere..... you have to pay to get a product into us, uk, india from anywhere like uk, china, taiwan etc... the differences in customs and shipping are not so much to raise prices to these levels... human greed is the primary reason...
 
so then does it make sense and is it worth the risk to order them online and get them shipped to India and pay the customs duty?

In such a case will the local dealer help in case of any issues during warranty period?

Does anyone have any experience to share on this good/bad..

when ever u buy any thing abroad for use in india u are trading some thing for the price advantage ( pane ke liye proverb applies). Basically u are trading the warranty and any service or repairs from the local authorised dealers for the price advantage u are gaining. it is always a gamble and unless u fully understand that risk u should stay away from buying abroad whether online or through some one bringing it personally. that said, this is india and if u live in a big town or a city ,you dont have to bother about repairs from the authorised dealers here, because let me tell you thereisnt any thing made in this world that cant be repaired in india, u only need to find the right guy and some people always do it and some simply cant seem to find them. but the warranty is a goner unless the product came with an international waaranty and there is an authorised dealer for the said product in india, for otherwise even with an international warranty u will have to send it back to country of purchase for service within warranty. but more and more i see international warranties disappearing from the scene because the local dealers would have a justified reason to complain against such warranty especially if there is a significant price differential in the product.

so r u willing to take that risk? because it is a real one, an item costing 10k may function perfectly for 15yrs, and an item costing 100k might go phut in 6months, so u need to be some what a gambler by nature, because only gamblers can understand the thrill u get whether u lose or win.

yes i have all sorts of experiences bringing products from abroad mostly from the us but also from singapore, kuwait, iraq and malayasia since 1975.

in those days one simply didnt have an alternative because the product simply wasnt available in india except may be in place like burma bazar in chennai etc.

even in 1980 bringing a couple of calculatirs and quartz watche and compact cassetee tape recorders for my relatives was a big deal with the customs and we invariably had to bribe them, the duty was 350% + fine if deemed necessary.

but now we have dealers for most things so unless there is a huge price differential there is no point , but again if u like gambling go on all you can lose is what u paid for it.

now about the problems one can have , i think i have had problems with about 5% of items got from abroad.. 1. a sanyo microwave oven 110volts. gave up after 2years of usage, but the local dealer in hyderabad repaired it after i buttered him up for sometime(even though he wasnt strictly supposed to do the job) and it has been working ever since for more than 5yrs. 2. i brougt a national panasonic 3in1 from iraq in 1982 and it worked well and was heavily used for some 7years before conking out, tried toget it repaired but after 2 failed attempts just gave it awa. 3. a sony minihome theater same as above. i can add some more but may be running out of words here, honestly there is only one example of an item which i believe didnot work for the expected period of time.. a subwoofer amplifier for my 15inch DIY sub from parts express.. even here i think i cant really blame them because it conked out after a sudden voltage spike, and next time i shall put a digital voltage stabilizer for the sub also.

as for speakers, if u are comfortable with DIY, speakers are the easiest components where u get the utmost bang for buck spent. simple logic. done properly ur 10k speaker will be as good as speaker costing 30-50k. simple logistiks are at work here, u are eliminating costly labour abroad, shipping, dealer margins, advertising etc and a zillion other things.
right now i am thinking of buying the ds1200 subwoofer kit from rhythmik audio, but after seeing the exchange rate today i postponed the buy to a more favourable day,or till someone will be visiting from usa, but i wont stop buying abroad. bought the onkyo avr414 2 months back and areat buy. but also bought polk rtia4s , centers and surrounds here from the local dealers.

so there u have the whole picture.
 
prices are set by the distributors.... some are greedy, some are not....

B&W sells to US and india from uk... they charge 1.5-2 times as much as the us price...
Usher sells to US and india from taiwan... their india price is less than the US price.

Distributor gets the piece at a much lesser cost than whats stated as mrp anywhere in the world... the profits are inbuilt... shipping and customs are there pretty much everywhere..... you have to pay to get a product into us, uk, india from anywhere like uk, china, taiwan etc... the differences in customs and shipping are not so much to raise prices to these levels... human greed is the primary reason...

also market volumes and lack of sufficient competetion plays a part too.
look what happened in the consumer electronics even after foreigners were allowed in. sony priced itself out of the market for a long time only after the beating it got from samsung and lg they came down to a more competetive pricing
 
Jaga,

Good Piece of work:). When we talk what makes the Hike in speakers (Some times double) on Foreign brands.
For Example if a Company has a production unit in England, and one of their speaker is imported to India. What are all the facts decides the price?Below some Maths:)

Fixed Cost\Dealer price(Not MRP)+Packing+Shipping+Import Duties+ Handling charges +Indian Dealer profit = MRP of the Imported speakers in India.

our Quest was Why there is variation in Price, So what are the factors decide the price variations

SHIPPING AND HANDLING
1. Size - Normally the size of FS would be much more copmared to BS, so the Extra charge will be added and FS will be more priced in Avg compared to BS.
Big SIZE=Big Cost
2. Weight-Though we say BS\FS, all speakers does not weight same, Some small speakers would weight heavy and some FS weights normal.

So Extra Weight=Extra Cost

3. Quantity
Though 100's International manufactures speakers and say 20-30 has their dealer available in India and ample of Speakers Models are available, The dealer will import only the Models which could be sold in Indian market.

So If there is High demand-->High Quantity import made-->High quantity(BULK Purchase) done-->This reduce the Margin of Dealer price due to Reduced Shipping-->As the Dealer Margin decrease the MRP also get decrease (Fixed reasonably by dealers calculating the Profit)

This is my understanding regards to the Imported SPEAKERS price variation.



Lot would argue that we are Paying 20-40% Extra than the Original cost, Instead for same cost get a Hi-end Audio from Indian Brands or DIY with pretty low cost

U missed WARRANTY COST. The warranry period varies from brand to brand and model to model. As nothing is free warranty cost is built in other than profit of dealer.
 
Join WhatsApp Channel to get HiFiMART.com Offers & Deals delivered to your smartphone!
Back
Top