The last few weeks have seen a huge swing in the foreign exchange rate between the pound and the dollar – causing chaos to the cost of musical instruments (that are in most instances purchased from factories in dollars).
With the pound falling from a high of just over $2.00 to the pound to $1.53 yesterday, an instrument of $100 that was costing £50 in July is now costing £65.36 – an increase of 31% !!
You can fully see the extent of the slide here….
Add in to this the fact that many far eastern factories are also putting up prices this year by around 15% – in particular China where rising wage costs and reduced energy subsidies are significantly adding to manufacturing costs - we’re looking at significant increases in prices, which will impact the end consumer very soon.
This is a major change in the general trend over the past few years of decreasing prices - due to the combination of a strengthening pound and cheaper product emerging from new markets.
This new dramatic trend will thus come as something of a shock for musicians – particularly in the current economic climate.
We have already had 3 Yamaha price rises this year, and many other manufacturers have recently put prices up by 15-25% in one go. It is also our strong feeling that another “round” of price rises is probably likely.
We’re doing our best to hold back prices as much as possible – as we sell off stock purchased at lower prices – but this is only delaying the inevitable bad news.
