Re: Increasing costs and our prices ....
I'd like to add something to this. We've considered this cost issue for months now. Not only do we have the rising cost of materials but of currency devaluation. In the summer, we were buying essential materials at a ?1 = $2 (one UK pound equals two US dollar). Today, ? = $1.48. That means we are having to pay about 35% more for critical materials now compared with during last summer.
As I was not willing under any circumstances to cut quality to cut price, as I watched the UK pound weaken through the Autumn I decided to order, pre-pay and stock-up on at least one year's worth of critical material parts. That included the specialist steel parts in our drive unit magnets. The cost increase in steel alone is shocking. Most of the ordered stockpile has just arrived, some parts are still at sea. This stockpile gives us a cost-buffer. Perhaps we are unique in having the willingness and ability to lay out our own money in long-range financial commitments to insulate our prospective customers from severe cost increases.
The weak pound does have the advantage that it stimulates export sales though. I really hope that our overseas customers will benefit from the weakness of the British Pound whilst the good times (for consumers) last.
Alan A. Shaw
Harbeth Audio UK