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ANOTHER massive price hike for the CDJ1000mk3

OK,

so I know the dollar/pound situation (plus the increasing cost of raw materials) has contributed to this, but when I purchased my CDJ1000MK3s back in November 2006 they were �750 each.

In the UK they recently rose to a staggering �900 each, but now they've just gone up AGAIN to �1099.

Fuck me. It's like I brought shares in a valuable commodity or something......

EDIT: Thought I'd check how much the DJM800 was and it's gone up too (it didn't the first time round) from 1099 to 1499.

So if I brought all this kit now I'd pay �3697, but I got a mega deal on my initial setup, which was an awesome price even at the time, I paid �2315.

ebay

You would think that a mature manufacturing process would lend itself to price reduction, not to mention that raw materials costs have decreased substantially over the last 8 months. Perhaps demand exceeds production capacity at the moment, although I doubt it in an economy like this.

trying to make as much money as possible before everyone goes laptop.

Maybe its the other way around, Stew, and Pioneer needs to up the price on what is slowly becoming a "niche" product (not that DJ equipment isn't "niche" already, LOL)

Ridiculous. It's basically the same device that was first produced EIGHT YEARS AGO and it now COSTS MORE.

Yes, prices go up on some things due to inflation/fuel costs/materials etc, but not on OLD technology.

I think they'll release a new product soon. This new high price will allow them to enter the market at an even higher price but on paper it will look like it's in line with their other products.

If the cdj had stayed at 1099 and they brought in a new product at 2k, people would really ask if it was worth it. Bring the cdj up to 1400 and introduce the new product at 1800-2k and people might consider spending that extra little bit.

Just my 2c..

quote:

Originally posted by n3lly I think they'll release a new product soon. This new high price will allow them to enter the market at an even higher price but on paper it will look like it's in line with their other products. If the cdj had stayed at 1099 and they brought in a new product at 2k, people would really ask if it was worth it. Bring the cdj up to 1400 and introduce the new product at 1800-2k and people might consider spending that extra little bit. Just my 2c..

Probably right.......

quote:

Originally posted by Ryan0751 Yes, prices go up on some things due to inflation/fuel costs/materials etc, but not on OLD technology.

You're misunderstanding the economics of this.

Most things sold out of China are sold in US Dollars. This means that the people in the US don't see much difference, regardless of exchange rate, unless the yen increases in value against the dollar.

But in the UK three years ago we were all doing really well from mass producing cheaply in China, because we'd get 2 dollars for every pound. Now we only get 1.5 dollars per pound, and it's been as low as 1.4. This is effectively a cost increase of 25%.

As has already been said, Pioneers business model is to safeguard the price of it's range, therefore even if production costs and materials decrease, the cost to dealers, resellers or distributors will stay the same. It's a good business model that prevents the value of your product from being driven down, because it supports and maintains the profit margins that the people that resell your product will make.

For us as consumers, we wouldn't do it for any old shit product, but since it's 'the industry standard' we're prepared to pay what Pioneer want, and just so long as we do Pioneer will continue to run it's business like that. If I was Pioneer I'd do the same.

Check mate.

just protecting the brand name really... you don't see aston martins going for any cheaper these days, do you (although tbh, i've never checked)?

Oh I fully realize they will charge what the market will pay, but if their margins are really high, doesn't it make sense to not alienate your customers?

CDJ-1000's ARE standard, but they are also very old, and technology has far surpassed them... we all know something new is coming, so you'd think if they dropped the price a bit they could off load inventory.

I paid $929 SHIPPED for my CDJ-1000 MK2's just 3.5 years ago (US). The new ones are insanely more expensive for pretty useless features. It's not good business, it's being greedy.

CDJ-1000's are great, but I'd never buy a new pair of MK3's right now. I'd take the 400's anyday for less than HALF the price.

The economy sucks, people can't afford $1500 dollar CD players. Pioneer will feel the hurt when they introduce their new product and a bunch of people say "Meh, I'll just buy a midi controller for $200"

quote:

Originally posted by Jarvmeister You're misunderstanding the economics of this. Most things sold out of China are sold in US Dollars. This means that the people in the US don't see much difference, regardless of exchange rate, unless the yen increases in value against the dollar. But in the UK three years ago we were all doing really well from mass producing cheaply in China, because we'd get 2 dollars for every pound. Now we only get 1.5 dollars per pound, and it's been as low as 1.4. This is effectively a cost increase of 25%. As has already been said, Pioneers business model is to safeguard the price of it's range, therefore even if production costs and materials decrease, the cost to dealers, resellers or distributors will stay the same. It's a good business model that prevents the value of your product from being driven down, because it supports and maintains the profit margins that the people that resell your product will make. For us as consumers, we wouldn't do it for any old shit product, but since it's 'the industry standard' we're prepared to pay what Pioneer want, and just so long as we do Pioneer will continue to run it's business like that. If I was Pioneer I'd do the same. Check mate.

quote:

Originally posted by Ryan0751 It's not good business, it's being greedy.

Good business has nothing to do with you, good business has everything to do with how much money is generated, and how you safeguard future profits.

Pioneer are running a good business.

LOL They aren't doing so hot...
Look at their financials.

quote:

Originally posted by Jarvmeister Good business has nothing to do with you, good business has everything to do with how much money is generated, and how you safeguard future profits. Pioneer are running a good business.

quote:

Originally posted by Ryan0751 LOL They aren't doing so hot... Look at their financials.

+1.

They have pulled out of pretty much everything except for our niche DJ market, home audio (ie: receivers) and in-car audio. Shame because their Kuro line of plasmas had to be seen to be believed...

quote:

Originally posted by Ryan0751 Look at their financials.

I've not seen them. Show me.

Just get 2 Techs and traktor or serato

quote:

Originally posted by orTof�nChiLd Just get 2 Techs and traktor or serato

+1.

Pioneer are finally making you pay for all that marketing and Dj sponsorship.

Don't get me wrong - I love my 800mk2's and think to some extent what pioneer did for CDJ's is what Technics did for turnatbles....

...but they went too far and asking $1000+ for a CDJ is not what the market will bear. Yes, clubs and rich kids might spunk it for them as they need to but the average home DJ (which is 80% of the market for them) won't pony up in these times. So the units are already made and they do a price hike so the other 20% can pick up the slack.

Yes, the exchange rates have something to do with it but the pound is higher against the dollar than it has been for nearly a year, so if anything prices should be dropping, not rising. Bear in mind the average of USD to GBP before the crash was about 1.8 (with a peak at just over 2) and for the last 2 months it's been above 1.6, currently at 1.65.

Why the price hike? because all their other sectors have crashed so they are trying to figure out how to cash in on the in demand products they still have inventory of.

They are also trying to get us to pay for the glut of not so popular products they flooded the market with in an attempt to kill all competition (technics/vestax/A&H/etc.) and took a loss on (such as the DVDJ's, the DJM 3000, DJM 909, DJM 700, etc.

It's all just product economics....

Good post djrann

quote:

Originally posted by n3lly I think they'll release a new product soon. This new high price will allow them to enter the market at an even higher price but on paper it will look like it's in line with their other products. If the cdj had stayed at 1099 and they brought in a new product at 2k, people would really ask if it was worth it. Bring the cdj up to 1400 and introduce the new product at 1800-2k and people might consider spending that extra little bit. Just my 2c..

Right on the money. This plus they probably think if people are going to buy them right now they are buying them because they want their product, not affordability. So they can squeeze a few hundo out of every purchase more.

quote:

Originally posted by Jarvmeister I've not seen them. Show me.

http://pioneer.jp/corp/ir/library/a..._4q09e_note.pdf

quote:

Originally posted by keithos27 http://pioneer.jp/corp/ir/library/a..._4q09e_note.pdf

I was asking Ryan, not you!

But since the interest, which part of that report did you find most interesting?!

Anyways, hope no one thinks I'm pro Pioneer price rises BUT, I see it as inevitable. It really is basic business management - they'll survive and they'll do well (in the Pro DJ range). If they don't I'll eat my hat.

quote:

Originally posted by Jarvmeister I was asking Ryan, not you! But since the interest, which part of that report did you find most interesting?! Anyways, hope no one thinks I'm pro Pioneer price rises BUT, I see it as inevitable. It really is basic business management - they'll survive and they'll do well (in the Pro DJ range). If they don't I'll eat my hat.

That report looks pretty bleak. I believe the CDJs are grouped into the "Other" category, but it's not a big deal since every product line has done poorly for the company according to this document.

It looks like the company is in the midst of a restructuring, so hopefully that will help to turn some of these numbers around...

what we're looking at here is CLASSIC price elasticity of demand...

in the world of DJ technology there are few substitutes to the pioneer CDJ1000...some people swear by denon, others will tell you stanton is good...but in terms of pure substitution, nothing comes close, and Pioneer knows it. Unless you are 100% digital, or using a hybrid setup, 1000's are your weapon of choice.

The law of price elasticity states that fewer substitutes available for a particular good, the more people are willing to pay for that particular product; in this case, CDJs.

Not really much more to add to this little econ lesson. classic case, pure and simple.

At one time the Techs were a similar example, for the simple reason that all the clubs had them.

And anyone who's used Techs knows that even though there are better decks 'on paper' with more tourque and what not, there's just something about Techs that will trounce any vinyl deck, forever, regardless.

quote:

Originally posted by Jarvmeister At one time the Techs were a similar example, for the simple reason that all the clubs had them. And anyone who's used Techs knows that even though there are better decks 'on paper' with more tourque and what not, there's just something about Techs that will trounce any vinyl deck, forever, regardless.

Well maybe techincally better, but technics just got it so right (back in the late 70's) that everything else, including their own revisions, were just more bells and whistles added to the perfect solution. You don't need 4kg of torque to turn a 200g record. If you can't mix on 1210's, another brand of decks is not going to help you.

The difference is, that technics price and quality remained constant - there was very little fluctuation in the RRP over two decades and you just couldn't really get a better deal anywhere and people couldn't get away with charging over the odds because you could buy them very easily.

Pioneer on the other hand, adjust their prices based on popularity and are jacking it up at the moment because they are hurting on other business lines, including all the marketing they do to try to drown out the competition and failed concept products.

The other thing about pioneer is overpricing in the first place.

You can buy a technics 1210 mk5g (top line model) for under $550. A CDJ 1000 will set you back a minimum of $1400 and the CDJ1000 costs them less to produce.

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