Saxophones How will Tariffs affect Sax Prices?

[thomsax]

A big problem with the tariffs is that USA see Swedish VAT (moms, sales tax) as a trariff. I paid for many years 4,6% tarriff on a sax from USA. I paid 25 % VAT (moms) to the Swedish state.

 

[mizmar]

A big problem with the tariffs is that USA see Swedish VAT (moms, sales tax) as a trariff. I paid for many years 4,6% tarriff on a sax from USA. I paid 25 % VAT (moms).

Sales taxes in the US can be hysterical.
I was in St. Louis and the hotel bill had: city, state and federal taxes plus a percentage contribution to building their new baseball stadium.

 

[Pete Thomas]

plus a percentage contribution to building their new baseball stadium.

I've heard of that. It's the BS tax.

 

[mizmar]

It certainly is, Ollie!

Although, "that's another fine mess you've gotten us into" might fit the thread better

 

[Pete Effamy]

new baseball stadium.

It is a World Series after all 🤨

 

[Targa]

And in sports cars European makes have no competition apart from a certain Lexus.

Mazda MX5

 

[Woodpad]

Q: how will tariffs affect sax prices
A: prices will go up
Q: how much
A: nobody knows how the cookie crumbles

 

[MarkSax]

Mazda MX5

LOL. Good car but more of a lifestyle than in the mould of a Ferrari or McLaren. More like a VW Beetle.
My very first business venture was making leather tops for MX5/Miata convertibles to replace the plastic one that damaged/sunburnt too easily. 1990s. The idea was interesting but the business failed from insufficient marketing and high costs in EU. Nowadays craftsmen build the same in Asia for cheaper. But it was a lesson learnt for my next venture.
Lovely car to enjoy. DM me a pic of yours.😊

 

[ZeroZero]

There will be a lot more Chinese saxes going outside of tariff zone. Many of which are good quality.

 

[thomsax]

No need for buying a new Chinese sax when you can buy a used or a new one made in Europe. Tariffs, but we have other things to consider as well.

 

[ESJohn]

Just checked Amazon. The lowest price alto is $229.99 (Glory) and the Jean Paul AS400 is going for $627.02. I think they used to go for around $450-$500. There is a "coupon" on the Glory that brings it down to $208.99.

 

[Targa]

LOL. Good car but more of a lifestyle than in the mould of a Ferrari or McLaren. More like a VW Beetle.
My very first business venture was making leather tops for MX5/Miata convertibles to replace the plastic one that damaged/sunburnt too easily. 1990s. The idea was interesting but the business failed from insufficient marketing and high costs in EU. Nowadays craftsmen build the same in Asia for cheaper. But it was a lesson learnt for my next venture.
Lovely car to enjoy. DM me a pic of yours.😊

You did say sports cars not high end performance cars.
In passing, I saw a lovely Austin Healey 3000 today.
I don't have an MX5, (Jeanette does), I have a Mercedes SLK.

 

[thomsax]

What's the real price for a new saxophone? A new low price saxophone ist' it just the material and labor cost. Who is paying for (how) that we can buy new saxes for less money? Theses costs are going to be high in the future. We just can't blaim everything on tariffs.

 

[Pete Thomas]

What's the real price for a new saxophone. A new low price saxophone ist' it just the material and labour cost.

There can be three prices.

1. What the distributor pays to the factory
2. What the retailer pays to the distributor
3. What the customer pays to the retailer

Of course in some cases the customer can pay the distributor or factory direct.

 

[Pete Thomas]

What the distributor pays to the factory

Further to the above the factory price is based on many things, materials probably being minimal. It can include many overheads including labour, tooling/machinery and plant, software, design, packaging, admin, insurance, premises, taxes, transport, energy,

 

[mizmar]

A new low price saxophone ist' it just the material and labor cost.

In the 90s I used to do this exercise with students to show that if you start with an empty box in China and end with a customer paying for it on Tottenham court road - with everyone getting costs + margin along the way, that was basically the price of a new video player. The only reason there's a video player in the box is that customers won't hand over cash for an empty box.

I exaggerate a bit. But that is a large part of the story of retail.

 

[Phil]

I dont understand these questions. The math is simple. If tariffs stay they will increase costs…inflation. If there is inflation the cost or horns will increase. No price is in a vacuum…not even vacuums. People who make and sell them must eat. If it costs more to produce and sell it will cost you more.

 

[iantaylor2uk]

Prices in the UK and Europe could go down for saxophones sourced from Asia as manufacturers there could choose to focus on those markets rather than the US.

 

[Pete Thomas]

The math is simple

I don't think it is quite that simple - Obviously in the US it will have the extra price because I doubt any retailer will be able to absorb the import duty. (The Powell Silver Eagle was maybe 10 years too early?). Things may change in that imports from some countries less tariff than other so maybe an EU instrument such as Amati will not rise as high as Asian instruments

But for countries outside the US who know whether prices will rise? Will prices go up in Czech Republic, China or Vietnam? I'm not an economist but I do know that there can be huge knock on effects that could go either way. But I can't predict anything, I don't think anyone can, just speculate. Which is usually useless but fun.

 

[iantaylor2uk]

Yes, clearly prices in the US will increase but manufacturers could make the calculation it is easier to dispose of excess stocks by selling it to other markets at a lower price, and choose to ignore the US market entirely until this tariff nonsense is removed.
There are plenty of products made in China which are never exported to the US. For example there are 120 million or more electric bike/mopeds/scooters/motorbikes in China and the market for these is massive in South East Asia. However the US market for these is so small the Chinese manufacturers can't be bothered with the hassle of exporting to the US.