In recent weeks, we have seen a massive price reduction on audiophile titles. What is good for the customer is a problem for us in several respects.
On the one hand, we are experiencing a considerable reduction in the value of our stock and, on the other, some customers still have orders outstanding that were placed at the old prices.
We are trying to solve this individually.
The cause and background are complex. We purchase the majority of our audiophile sound carriers via the official German distributor Sieveking Sound in Bremen. This company has invested a lot of time and money over 20 years to keep prices stable. Among other things, massive investments were made in marketing and service.
Unfortunately, the market has collapsed and U.S. manufacturers are pushing goods onto the market. They no longer take official distribution channels into consideration. In particular, the very large dealers in Germany started to import directly from U.S. manufacturers, which should not actually be possible. In turn, they began to drastically reduce the original sales prices, which put "normal" dealers using the official distribution channel in a tight spot. In order to remain competitive, they also had to adjust their sales prices. However, this meant that these dealers no longer had a sales margin.
As a drastic measure to stabilize the market, a completely new pricing policy was introduced. This led to the aforementioned price reductions.
