Arcam raises UK retail prices

"I know what they should do... because of the credit crunch and resession etc ??? if they put the prices of their products UP rather than down more people will be able to affor... oh, hang on a minute..."

That depends on the margins doesn't it. What if it is only small to start with? Costs rise, and then sales get squeezed with the recession. Reducing prices is a big gamble as you have to hope it will increase sales enough to cover the declines in volumes and per sale profit margin. Highly unlikely to entice many more sales for the sake of a few hundred pounds off a £000k product. Where as those people that were going to buy one originally most likely will buy one if price increases by same amount. They could afford the item in first place, so a few hundred £ more won't kill them...

I know what they should do... because of the credit crunch and resession etc � if they put the prices of their products UP rather than down more people will be able to affor... oh, hang on a minute...

Auditioned an Arcam AVR600 over the weekend and first listened to the Pioneer SC-LX81. Source was the Denon DVD3800BD and into PMC OB1i fronts, etc.

The difference is night and day. The Arcam is the most exceptional amp I've ever heard for home cinema duty. It is not receiving rave reviews for nothing. Would I agree it's worth £3,500. Yes. I bought one. (For less than that I might add, if you have a good relationship with you dealer, and a long term upgrade path, he'll listen if you're reasonable). It is a product that stands alone. So should you buy the Pioneer? Yes, if £1500 is your limit. But don't for one moment, question whether the £3,500 is worth it. That's a different question and into very revealling gear, the answer is unequivocally, yes.

Dazmb, I think you have got me all wrong, I love ARCAM stuff and I agree that the R&D costs will be higher. Not sure about the car comparison though;-)

I love my Movie Solo, and wanted to move up, but I am now dissapointed that I cannot, without changing sides.

And you have to agree the Pioneer Plasma's are/were the dogs danglies?

But back to ARCAM, I am just a little upset that I cannot/will not spend 3.5k on an amp. I think my wife may divorce me;-)

H4rdy, I don't think your example holds up. Firstly there is no technical evaluation between the two products. Yes, they are both A/V receivers but maybe that is where the comparison ends? It's like asking why an Audi RS4 is more expensive than a Ford Mondeo. They are after all both 4 door cars.... at first glance, but that's where the similarities end. Certainly i'd put money on the Arcam having a much higher quality (for which read expensive) amp section.

But more than that, unlike the Pioneer this is Arcam's first upscaling multi channel A/V box. Therefore they have had all the initial development costs for this model. Future off-shoot models whether higher or lower end using the same technical architecture will be cheaper as the R&D costs will have already been swallowed up in the AVR600. Plus as more models are introduced the efficiencies of scale will start to come into effect. More sales = lower unit costs usually does it not.

And of course Pioneer are relative to Arcam a mass market producer who will already enjoy major unit cost benefits from volume of sales compared to a small niche outfit like Arcam. Although having seen the price of Pioneer's TV's you'd would not think so

No idea eh...........

A friend of mine ordered an AVR-600 after being told it would be approx 2-2.5k.

When he went to audition and 'collect' and was told 3.5k he bought the Pioneer SC-LX81 as there wasn't a 2k difference!

We are not talking hundreds we are talking thousands.

I love ARCAM stuff and it was my dream to own one day when I could afford that is why I bought the Movie Solo.

But it looks like the last time for me as I cannot afford again!

Some people have no idea...

Arcam have a double whammy: the poor exchange rates that they have on parts that are bought in for their UK built stuff and the far east made products hurt them... and then as all their gear is in-house designed they have the huge R&D costs, unlike those brands that rebadge or slightly tweak gear designed and made by generic asian OEM's.

It's still good value for the quality & performance on offer I think.

I doubt even in the good times most British hi-fi companies were quite raking it in as much as the banks were.

And for relatively small companies like Arcam or Cyrus, the R&D costs of developing new products are a huge part of their expenditure.

I was considering upgrading my Movie Solo 5.1 to the new AVR-600 until...............I found out the ridiculous pricing! I would have paid �2-�2.5k but not �3.5k! Outrageous. Difficult times I am afraid and this is not the right move. What has happened to all the money they have made in the previous 'good time' years? Big slaps on the backs and bonuses I would suspect!

I think most manufacturers are between a rock and a hard place in the UK right now. Keep prices at the same levels and make a loss or put their prices up and risk diminishing sales which in turn could lead to......................

..........................making a loss !!!!!

Do you really think anyone wants to raise prices in the current economic climate unless they have to...?

GREEDY BANKERS,GREEDY MPs. NOW GREEDY HIFI MANUFACTURERS WHOs NEXT ON THE GREEDY BANDWAGON.

Greed, obviously.

t.lunnon

another one jumping on the bandwagon

am I glad I do not like arcam products.

when no one buys this over priced

Hi fi they will wonder why.

When is the Blu-Ray player being released?

Some Arcam products are manufactured in the Far East, as I suspect are many of the components they use, so the weak pound may still work against them.

Why? These companies are UK based. Interest rates are low. VAT is only 15%.

What's their excuse?