Axiom Home Page Forums General Discussion Stereo Axiom speakers to cost 25% more in Canada?

I have heard that Axiom intends to raise the price of its speakers by 25% in Canada effective April 1, 2002. Is this true? Has anything been added to the current line to justify the extra cost?

I was told the same yesterday by a dealer of Axiom and was encouraged to purchase A.S.A.P
How can this be??

Are the website prices going up too or are they staying the same?

Hi Axman,
The Canadian dollar list prices at Axiom retailers in Canada will rise on April 1st in order to match the web site prices, which will remain unchanged. That's all the information I have at the moment.

Regards,

What sort of Marketing Strategy - or lack there of- is this?

Everyone, please, let us not start questionning marketing strategies of axiom audio.

According to Alan, the prices are only going up in stores to MATCH the prices here on the website. for example, Marc Hallam's Audioshop in Ottawa sells the same Axiom speaker for less than Axiom themselves. Axiom is now simply making all the prices equal. You can still get incredible deals in the Factory Outlet, which are %20 off the regular price.

It would, however, be a shame if prices on the website were increased for the same model. If a newer or significantly improved model was released, then, yes, it would likely cost more.

There appears to be more to this than meets the eye.
As it seems to be of prime concern, perhaps Amie and/or Ian can comment?

If everyone was on the level about pricing to start with, it would be much easier. Axiom itself does not post Canadian prices and does not seem to want to encourage Canadian shoppers to purcahse directly from them buy over quoting . This has been my experience. I have been in contact with Marc in ottawa and have spoken to several dealers in Toronto and surrounding areas. The price quotes are so variable that one must question what the best price actually is.
I was so close to making a final decision about buying my Axiom setup ( M60, VP150, QS8 ) that I may drop it all together. Just imagine, spoke today with a dealer and next week , I show up and they say " that'll be 25% more than what I quoted you , due to price inconsistency" What kind of B.S is that . ( Should I fill my car with Gas today or tomorrow )

To me, this sounds like a way to try and corner the full market for US customers. Some US customer like myself did not buy directly from the company due to the fact I could find a cheaper price somewhere else. Next, they will tell their resellers that they can only sell to their local area like most speaker companies do today. It is a shame if this is true. It seems that greed has set in. I love the Axiom speakers I own. I plan to upgrade in the future but I might look at someone elses speakers or even build my own if they go up any furthur on prices. It seems that their name has finally got out to the public so lets do what every other company does start raising our prices. I am not trying to be harsh; I just hate to see when good companies get the big head.

Not that I am rich and don't mind paying more, I still have a big part of the system to fill but I looked Hsu's subwoofer in Feb, it was $375, I didn't buy right away, the price gone up a month later, it is $450 now.

Check the stock prices for oil and nature gas comanies for the past 3 months, you will get a sense of what's happening or will be happening around the world - not just on Axiom products.

Alan's post above indicated that the website prices would remain unaffected.

There is a difference between raising prices all around and raising prices just in Canada. If prices are going up based on a trend you state or if Axiom's overhead is higher than even the internet prices would be going up. From what I have read on this post if it is true, Axiom is making resellers raise their prices to give themselves a more fair advanatage when it comes to selling their product themselves. If people like myself from the US buy from a Canadian reseller instead of buying directly from Axiom it is cutting into their profit. I am sure they are making some profit from when they sell the speakers to the resellers they just don't make all the profit if they sold directly to the US Customers from their website.

I think that Axiom would have to offer lower prices to entice dealers to carry the product. If they had the same prices as the web, what would the return policy be? Who would under right the costs of these returns?

Also, as I am sure most who have followed my posts know, I advocate listening before purchasing. If the return policy was not the same, say better online, I can envision people listening at the dealers, and buying online. This is not a new phenomena, as everyone will seek a better deal. If you spent your time at dealer A, and then found you can get a better deal (on any item or clause in the deal for that item) you naturally will be attracted. While this may not affect low-mod fi dealers who are not equipped to help you make informed choices, those dealers who are in this realm can, will and have suffered.

However, I have yet to find a quality hifi dealer carrying this line.....

BBIH,

Don't take it as I am trying to hammer Axiom Audio. They have every right to raise their prices it is the capitalistic way. I always shop around to find the best prices. That is why I use companies to price match to my advantage. I also use the internet as my advantage. If I can find a product on the internet that will cost me less to have it shipped without paying taxes I will do it anyday. Another example is that I love to eat at the little hole in the wall shops. Usually the food is better than a chain restaurant. Usually the prices are better in the hole in the wall so tell me would you rather pay high prices for lower quality food or go to a no name place and buy a better product. Another example is BOSE. I know a lot of people don't like the sound of Bose. I think it is OK at best, but the prices or outrageous for what you get. Would I rather buy a named product just so I can show off or buy a no name speaker product that puts out sound that makes everyone say DAMN those are some great sounding speakers who makes those. I work with someone who laughed at me for buying Axiom but I was laughing last when he came over to my house to listen to them. Last I live in the deep South (Alabama) and I can not find anyone around here that has heard of Axiom. I think it would be great if Axiom products were caried down here.

Damn, that's a bad news. I already got 2 days off next week to visit Canada and get an Axiom set. But if the prices will jump over the Paradigm, I'll get the dimes for sure.

I'm not sure if everybody has the correct interpretation of what's going on. The way I see it, all the policy means is that (for example), Audioshop cannot LIST Axiom speakers for less than the price on the Axiom website.

Does this mean there's no advantage or potential savings to buying from a reseller? Very doubtful. Unless Axiom starts pricing speakers with a "manufacturer's minimum retail price" (I can't remember the acronym), you're still likely to get a deal from going to a store. I can't imagine any retailer not giving a deal on home electronics off the list price...no store would stay in business like that.

What Axiom appears to be doing is ensuring that they are the primary sellers of speakers over the net, or at least that there is no major incentive to buy from other web sites. This makes good business sense, particularly for the American market, and really doesn't penalize the consumer who shops at brick-and-mortar stores. Audioshop may very well lose a lot of sales over the net, but even that isn't a guarantee since most people seem to think Marc Hallam provides excellent service. In fact, there still isn't anything to prevent Audioshop from selling Axiom speakers on the net for less...Hallam just can't adverise that he's doing it.

This is probably much less of a deal than we're making of it.

No, I did not take your comments that way, and did not intend to infer anything. The comments were general in nature, as many have opinions on this tactic by Axiom.

I agree with almost all of your sentiments beyond that. I would also think Axiom would like feedback, and may take into account user feedback. I am not in anyway associated with them, other than owning a pair of their speakers. I am not sure their methods for user focus groups to determine "go to market strategies"...other than this board. If that is the extent of the input user have on the products, it would be a tragic approach.

So, to sum up...hammer away!!!

I did not expect my original post to generate so much discussion...but I'm glad it did!

Axiom speakers shall remain good value speakers in Canada, even with the moderate price increase. But I would hardly call them outstanding values, once the price increase goes into effect. And that is precisely my point, and which the preceding American commentator alluded to: Canada is home to many excellent, world-reknown speaker companies -- Paradigm, Energy, PSB, Mirage, Axiom, Sound Dynamics, Dalquist, Totem, etc., etc., etc., -- ALL of which products can be purchased for substantially less in Canada than state-side. In the very competitive Canadian market, Axiom speakers ruled, IMO. However, with the expected price increase, many people will now seriously look to other companies that may provide better value. This is something that I feel the company ought to seriously consider before implementing a pricing policy (without adding extra value) that makes its products less desirable in this highly competitive and value-oriented Canadian market. It may even result in some dealers deciding to drop the Axiom line altogether in favor of another company that can provide their customers with the best value for their hard-earned money. Just some thoughts.

...Let the discussions continue.

Do you think REPLAY in Etobicoke will be raising their prices as well? I ask this because I've heard they sell factory blemished speakers.

Cheers

I have no insight as to the strategy of any dealer or distributor carrying the Axiom line.

I would suggest you call them directly and ask.

What are the new prices?
Did the cost to the dealer rise too or is just an increase to the list price?

This post seems to have generated a lot of attention. I think it is important to point out that 25% is the wrong number. The actual number is 12% and this does not reflect the entire devaluation of the Canadian dollar since the models were first introduced. Though being a Canadian company insulates us from some of this devaluation the reality is that most of our raw materials are commodity based and as such are tied to the US dollar. Even with this adjustment to the Canadian prices we are still in the position of being the value leader among the Canadian loudspeaker manufactures. Reality is we should have done this over a year ago but decided to take a wait and see approach to the Canadian dollar devaluation. There is no change to our prices in the United States. The commitment at Axiom to produce the highest quality performance at unbeatable value will always remain our core philosophy.

Thanks for clarifying this for us.

I do have one question - how do you quantify, collect and measure the data to be able to make this statement:
"...we are still in the position of being the value leader among the Canadian loudspeaker manufactures" ?

Ian,

You said, "There is no change to our prices in the United States"

Why then have the US prices of your factory outlet speakers all increased 12% as well?

I was thinking of buying some for the past month, but will now reconsider.

josh

The factory outlet is for our products that end up with a small cosmetic blemish in production. This being the case there is a limited supply of product available. We now have a varying amount of discount depending on the quantity that is available. You will find that there are still products available in the outlet at the same price as they were in the past and others are available at smaller discounts because we do not have as many of them. Overall in the long run this policy should make available more actual models in the factory outlet at any given time. The reality is we were running out of cosmetic blemished products in many models and there would have been very little left in the Factory Outlet if we left it the way it was.

Is that sort of price manipulation legal in Canada?
Are you not under cutting the Canadian stores in price now?

Of course its legal, they make the speakers, they can set any price they want. Anyways, its probably just a manufacturers suggested retail price and actual dealers will still give discounts.

Axiom is already one of the better values in audio at the list prices on the speakers, and when i bought my speakers a few months ago was shocked when the dealer (in canada) gave me a price quite a bit lower than the list prices. It was an unbelievable bargin, but i didn't think it would stay like that for long...

Still, i think dealers should be allowed to sell for less than the internet prices, since they have to pay for staff, overhead, inventory, etc. It would be a shame if dealers stopped carrying Axion because everyone simply listened to the speakers in their stores, then went to save money by buying online...