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Car Audio Becoming More Expensive! Question is Why?

Car Audio Becoming More Expensive! Question is Why?



Many industry members expect to see another round of price increases this fall, even after some suppliers have already raised their costs and suggested list prices up to two or three times since January.

The cost of raw goods and the containers to ship them overseas keeps rising. The price of a container has jumped from $14,000 to $20,000 in recent weeks, said suppliers and distributors. Before the pandemic, the price of a container was only $3,000 to $5,000.

Joe Levy of distributor Thunderball expects many suppliers will raise prices this fall by at least 10 percent. “It’s crazy what’s going on,” he added citing container prices of up to $20,000.

Some suppliers have already raised prices by 10 or 20 percent this year.

Kevin Holder of distributor Ultimate Marketing said, “Containers have gone up to $18,000 to $20,000. They used to be $5,000.  We’re going to see some dramatic increases in prices come August and September.  Copper’s gone up. A lot of raw material prices are up because of supply and demand. I think we’re going to see a 30 percent price increase.”

One of the top five head unit suppliers said it also expects more increases in the fall.  “It’s not just freight. It’s raw materials, everything is going up.  I think people [companies] can’t sustain it any more.”  He expects increases in the teens later in the year.

Pioneer is the latest to raise prices with an increase announced for August 1.  The company sent a letter to dealers stating, “As the cost associated with raw materials, components and global logistics continue to escalate, Pioneer must reflect this impact on pricing to our customers…”

Credit to: CE Outlook

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