Peavey's New Sp line

[dboomer]

I've never seen that to be a factor to any significant amount anywhere I've worked. You can't charge more for your next project because your last project lost money. You can only charge what the market will let you charge.

[Dookietwo]

The new SP line is up on Peavey's web page. So far not much. Not sure if there is more to follow or not. If not then they've pretty much killed the SP line. The SP2 and Sp4 are still there but the SP3,5,6,7 are gone. Couple of monitors and subs. The Sp2 comes in under $500 so not too bad but there is a lot of middle of the road active speakers in that range. May get a pair before the Sp line is gone for good.

 

http://peavey.com/products/index.cfm/list/1473

[agedhorse]

I agree with Craig here, costs are ALWAYS passed onto the consumer in some way or another, be it overhead, general R&D, or whatever it's spun as.

 

The 486 might be an ideal platform where the additional features, speed and other features are not needed for the product. Why put racing tires on a street car, especially when street tires might be more reliable and available.

 

This doesn't mean I'm not doing cutting edge products, or products that don't sell. I think my track record speaks for itself in that regard.

[dboomer]

I agree with Craig here, costs are ALWAYS passed onto the consumer in some way or another, be it overhead, general R&D, or whatever it's spun as.

 

The 486 might be an ideal platform where the additional features, speed and other features are not needed for the product.

 

I guess it could be fine ... As long as you have enough room left to add a crank so you can start it up

 

As to Peavey SP. it's interesting that the price is still $500 for an SP2. That was the price in the 80's

[Craig Vecchione]

I've never seen that to be a factor to any significant amount anywhere I've worked. You can't charge more for your next project because your last project lost money. You can only charge what the market will let you charge.

 

As Andy notes, every cost is ultimately born by the consumer. If something costs the company money and doesn't generate income, that loss may not be compensated by increased prices, but by reduced profit (assuming there is profit available to absorb the cost) reduced staff salary and/or benefits, and reduced funding for new R&D projects. The consumer most definitely loses when you can't even start on the next big thing because you're paying for the last big thing...which thanks to broken vendor promises...never made it to market.

[dboomer]

I think you are confusing this with other things. If the price of a barrel of oil goes up then all refiners charge more, fine. there's no way around it. But a MI manufacturer can only up a price if his customers will pay that price. If you up your price and it results in fewer sales your profit MARGIN goes down and the situation gets even worse.

 

You would think that a manufacturer should be able to make a fixed profit margin, right. It costs X to make a widget and they should be entitled to make some straight percentage of profit on top of that. But it doesn't work that way. Pricing and profit margin are pretty much set in stone before a project starts. There is a lot of research done in the beginning to determine that. Now if your costs get out of control and rise then you suck it up and settle for a lower profit margin ... or you kill a project. Screw up too much and the company goes under. At least that's the way it works in big companies. But you cannot raise a price unless your competitors do also, unless you make a unique product. The price of a Ford is based on the price of a Chevy.

 

I'm sworn to secrecy beyond that.

[heath_eld]

No more SP3???

[wesg]

This actually tails back to the Behringer discussion from three years ago. One way they keep their prices low is by keeping costs low. One way they keep costs low is by letting other companies do the heavy lifting on the R&D side, where development also includes market development.

 

This is actually why I've decided, personally, to not buy Behringer products except in cases where they are making something that is not available from another manufacturer or where they've shown they've significantly innovated. So, I have no discomfort at the thought of buying X32s, but I don't want their powered speakers, desktop mixers, and would think long and hard before buying an iNuke. I bought a rackmount mixer from them a couple of years ago, though -- they were literally the only company I could find making one with at least 3 mic pres, 2 stereo channels, and 2 buses in 3U or less.

[Gordon Sound]

It always boggled my mind that Peavey didnt turn the Crest line into a more of a top end line. Behringer is certainly exploiting the Midas and other ne lines. I would have thought introducing a line array in the Crest line may have made it more rider compatible at least possibly more excepted. Peavey has always made some great products, but in the past of only being sold by mom and pops were hurt by deployment issues. I for one never thought Peavey would be bad for Crest, but that Peavey could use crest to put more legitimacy in cutting edge products by badging them Crest. Say what you will Peavey certainly knows how to build products that work and last. Peavey PA heads are near indestructible for rentals