I understand the RRP, I understand global pricing. And there is more at
play than just shipping costs and import duties (shipping costs for
software is very low :) ).
The RRP is supposed to be higher than the retail price, the way the
company does this is by imposing an additional margin. And this margin
is usually consumed by the cost of supporting individual customers
(local distribution offices of global companies are usually not geared
up for that - they deal with distributors/large retailers, high volume
buyers). So the fact that Logitech advertises an RRP higher than what
we expect is logical.
However, it is at the distribution end that things do not seem to be
working out yet. I hope that the manuafacturing capabilities allow a
Squeezebox Duet to be distributed by Harvey Norman, JB Hifi, and the
like in Australia (or Dixons in Europe.. are they still around?), or
MediaMart. Not the hifi niche channel, but a channel with access to a
very good market share. Volumes from a small distributor base keep the
Remember, there are account managers that need to be paid and
commishioned, order processors, shipment agents (from Logitech national
sub to distributor), warranty and repair services that claim a fixed
cost, etc. Only with the appropriate scale can these operate without
inflicting a price hike.
My concern is that Logitech has not been able to enter this
distribution market in the local subs very well with the SlimDevices
product line. It seems that the local account managers do not want to
burn their hands at the "hard to explain why it costs what it costs,
high risk audio components that do not even stream video" (not my
What we can do as consumers in a country, is just walk up to such
retailer(they are in all the larger local malls, so combine it when you
are there for other business), and ask if they sell Logitech Squeezebox,
or Transporter (less chance that that will come out of the niche market
into the main stream, but ask your HIFI specialist)... If enough people
ask (and the staff is smart enough to notice), then someone may just ask
the Logitech account manager...
What SlimDevices can do, is to keep communicating the demand for local
distribution through the Logitech train... The Squeezebox Duet may just
be the product to break through the masses, and it does not cost more
than an iPod Touch..
Just my two cents (spread out over a lot of words)
matthijskoopmans's Profile: http://forums.slimdevices.com/member.php?userid=2622
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