Why the huge increase in the price of Sonus Farber Amanti G5 speakers.

"Wait until you see the prices when magnets can’t be sourced."

Just found out that my fav headphone manufacturer put a hold on building at least 1 phone because of the Chinese governments' restrictions of raw metals exports. In this case, magnets.

@arafiq 

"Sales and operations planning" and "integrated business planning", yes and then there’s material requirements planning (MRP) that starts with a concept then an engineer’s drawing and the countless the individual pieces that will be required that go into the recipe which will require a bill of materials (BOM) which will be used in every step of manufacture but firstly, for the purchasing department to procure parts and supplies "just in time" to reach receiving dock and to receiving inspection. Then before the parts go into inventory they have to be reviewed for compliance which involves vendor certificates, verification of nomenclature, measurements, functional testing and material review board (MRB) with the quality control manager, the engineers involved in the design the buyers to ultimately determine "except or reject". It can be determined use the parts as is or return to vendor (RTV) which requires a return authorization (RA) for rework etc. long before any of it can go into stores waiting for the pickers to assemble the various pieces into kits which are either sent to the shop floor or maybe to a contract vendor for sub assembly and then returned to the receiving department for more of the above which part of  WPI or work in process.

I hope you get the picture but this doesn’t even scratch the surface of what is to come in the process of bringing a marketing concept to fruition and all the steps and people involved to make it happen. The variables are endless and all factor into the costs and what you can reasonably charge for a product that the market will support.

I was responding to you about assuming that only he knows what he’s talking about while others are just guessing. What he described is a typical process in business called sales and operations planning or integrated business planning. It’s standard fare in the business world. Lots of people on this forum are quite familiar with how that works :)

 

Soon after the "end" of covid, I went to a JL dealer checking on the price of an F113V2.  It was $4000.  But the dealer, AA, saw the price increase on their computer and bumped it up to 5K, regardless of the stock in hand.  One month later it went up to $6K.  I found 1 new and 1 lightly used for 4K and 3.5K respectively.  Ridiculous.

@arafiq - No, Blockbuster would not still be kicking anything but the bucket, as this new thing called streaming came along and totally obsoleted the entire CD/VHS rental business model. 

I have heard two versions of the Blockbuster saga. One was that Netflix's founder was on the board begging to change their business model and he was laughed out of the room. The other is that Blockbuster was already planning for become Netflix but they had too much debt due to aggressive expansion that they couldn't finance it.