[Harp-L] RE: Hohner Price Increase

[Richard Hunter <turtlehill@xxxxxxxxxxxxx>]

I do think it's odd that Hohner has decided to raise prices significantly at a point in time when:
1) Unemployment in its target markets is higher than at any time in decades, meaning that many potential buyers are already cutting back on non-essential purchases, and
2) A major competitor has introduced a new line of high-quality instruments that compete directly with the top-line Hohner instruments, and were already priced in the neighborhood of 20-30% below Hohner, BEFORE the price increase.

It's difficult for me to see how Hohner's move will increase their market share, especially for a new model like the Crossover.  In fact, assuming that Suzuki can ramp up production of Manjis to meet demand, I would expect that the opposite is more likely to happen.  I have no doubt at all that many people will be more likely to buy a Manji priced at $45 or so at retail than a Crossover priced above $70.

But perhaps there are elements of strategy here that I don't understand.  Or perhaps exchange rates have been hurting Hohner for some time, and they've been holding off on the price increases until they couldn't bear it anymore.

Whatever the logic, in my opinion this price increase is ill-timed given the state of the economy.  Certainly their market has other choices that are far more economical.

The net result is likely to be significant damage to the Hohner brand, at least in the short term.  Given that harmonica players tend to stick with whatever they're using, if Hohner succeeds in convincing large numbers of players to try somebody else's products, the damage could be lasting.

I don't take any pleasure in saying so.  I've enjoyed playing the Marine Band deluxe I bought months ago and intended to buy more.  But not at prices north of $70 per instrument.

Regards, Richard Hunter




 

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