Korg Forums

shrike

First of all, I would like to emphasize the fact that I'm aware this isn't official Korg's forum. But I'm also aware Korg employees are present in here (Jerrythek, UKtechsupport). My words are directed to Korg and not this community so I beg you, dear forum members and forum administrators, don't get offended with my words.

Today I was in a local store where they have Korg products; actually they are Korg distributors in Croatia. I noticed how Korg raised their prices significantly in the last few months. Specifically, I bought EXP-2 and nanoKontrol today, but was on the lookout for SP-250 too. Since it costs over 1100 euros now, I dropped this idea.

A very polite employee elaborated on the current situation and future Korg plans.

1. Korg's prices in Croatia are raised because Croatia is obligated to buy Korg for currency of jen. Bad currency is causing prices to raise. OK, I can live with that.
2. What I can't live with is this - Korg decided to charge for their products equally worldwide. Which means if some Korg product costs 1000 euros in Germany, it will cost 1000 euros in Croatia too. Korg obviously doesn't take into consideration the fact the German standard paycheck is about 1500 - 2000 euros per month, while Croatian is 500 - 1000 euros per month. More so, taxes aren't the same worldwide. Once again, Korg proves the worlds policy where rich get richer and poor gets poorer. USA has discounts and sale actions constantly - buy an M3, get 1-bit recorder for free. Discount on this, discount on that. USA doesn't have taxes on keyboards and IT equipment, while Croatia has and very high taxes those are (it's considered luxury in here). But Korg products were always waaaaay cheaper in USA than in Croatia, no matter taxes. Now, as if it wasn't hard enough for us to buy a new Korg product, Korg decided to raise the prices for 20 % in Croatia. Of course, not 20 % in relation to previous "normal" prices, but 20 % added to current 30 % price growth. Which literally means SP-250 which was about 800 euros is now 1100 euros and is going to be 1300 euros. But of course, if you buy it in USA, you'll get free M3M with it. (Americans, please do not feel offended, I don't have anything against you, I'm glad there is someone out there who can afford new gear at normal prices, the discrepancy between you and me is what's bothering me and that's not USA's fault but Korg's).
3. There are countries which are even poorer than Croatia is, I wonder how are musician there going to buy new Korg gear.
4. Korg figured out that prices in Croatia are too low (yes, too low, not a writing error) and decided to revoke Croatian distributor. Instead, Serbia in going to be distributor for the whole region. Of course, this will influence the price raise too.

I know there is world economy crisis. But charging 50 % more for the same gear can't be explained with any crisis.

I was loyal Korg user for almost 20 years. It saddens me greatly that Korg has absolutely no social sensitivity.

God bless you all.

pwoznic · Joined: 16 Feb 2009 Posts: 13

The purpose of any corporation is to make money.

kenackr · Posted: Mon Mar 09, 2009 4:16 pm Post subject:

Shrike,

I hear you and feel your pain.

Just as a side note, every state in the US does have a sales tax.
_________________
O88, T1, Wavestation, M1r, Pa 4X 76, Proteus 1-3, Morpheus, UltraProteus, K1200, Akai S2000, DP8

shrike · Posted: Mon Mar 09, 2009 5:15 pm Post subject:

Sharp · Posted: Mon Mar 09, 2009 6:32 pm Post subject:

I don't wish to sound insensitive to your situation, but I'm not sure I understand how all this is KORG's fault.

How much tax goes onto the price is down to your government. The UK Government just dropped theirs which is why it's now cheaper for me to buy from the UK than in Ireland. Should I complain to KORG UK ?.

As for promotional offers, even a kids "Happy Meal" in McDonalds is subject to participating stores only. So if KORG USA are running one, we are certainly not entitled to the same from KORG UK here in Europe.

As I said, I don't wish to sound insensitive, it's just that I can't see how you can argue for cheaper products. Why should you for example play less than the rest of the world.

Kind Regards.
Sharp.

shrike · Posted: Mon Mar 09, 2009 7:10 pm Post subject:

Korg is raising their prices enormously. In total, 50 % in a few months.
Korg doesn't offer goodies in Croatia. Ever. USA gets free MOSS. Australia get's free 1-bit recorder with M3 purchase. Every once in a while there is something free in countries with significantly higher standard. And I don't even track foreign market so closely to know more similar examples.
Croatian market is very loyal to Korg, majority of musician use Extreme (and other Triton incarnations), PA2xpro in the past, now PA2xpro and Pa800. Countries in region (Serbia, Bosnia and Hercegovina) are also mostly loyal to Extreme, Pa800 and Pa2xpro. But did we ever get something alongside with boards we over-payed anyhow? No.
If Korg can't live with profit it made so far and has to raise their prices, does it have to be 50 %?
Are we to blame M3 isn't selling well?

I don't have any hope I will influence current Korg policy in any way. My country is small. Insignificant to Korg. But I wanted to point out that world isn't uniform and there are even countries with lesser standard than Croatian. I wonder what will Korg sell there in the future. Maybe some guitar tuner.

Too bad. I prefer Korg above anything else. But it stops with Extreme, I believe.

KrzysiekK · Posted: Mon Mar 09, 2009 7:12 pm Post subject:

Speaking of the difficulties in this matter ... if I was Korg fan I would nag them to find a new distributor in Poland ASAP. I have proves of their (Megamusic) incompetence. On the other hand I cannot prove everything is their fault, rather than Korg. I do not want anyone's bussiness go down in these hard times and am aware of various independent difficulties, but please...

- EXP-2 is not found in any shop here (all of them rely on local distributor) since over a year or more. Now I really wonder whether Korg discontinued them or not?

- a friend bought a used TEX61 unit with broken ends (probably shipping's fault, which he apparently could not prove); not only he couldn't count on parts, he was put off by arrogant staff at Megamusic

- some (long) time ago I received padKONTROL which was told to be "new"... well _it was_ new but you would never like to see your new product arriving in such condition. The box was literally mangled as if a looter dig inside (though the packet looked very well from outside so I could not say anything's wrong when receiving the packet). The included CD packaging was broken (happily the contents survived); the unit itself looked perfect, just the data encoder looked something strange ... well, then I realized it was broken

- I've seen a thread of dissatisfied customer somewhere on Polish forum; there were many supporting voices complaing on the quality of services

I do not want to contribute to deprivation of someone's income with such posts, I just demand for more customer care in civilized world we live in... don't we?

Greetings,
Krzysiek

jerrythek · Platinum Member Joined: 28 Jan 2002 Posts: 2931

Buy an M3 get a free MR-1? I've never heard of that offer...

??

Regards,

Jerry

xmlguy · Platinum Member Joined: 26 Nov 2007 Posts: 3605

What's keeping you from buying the products elsewhere where it's cheaper, and then selling them yourself at a profit while undercutting the local price? Whatever barriers you experience in performing this kind of arbitrage is the real source of the monopoly power that sellers can exploit for profit. If you get together with other musicians in your country, you can be very resourceful to your mutual benefit. The opportunity with quality pre-owned gear is even higher, if you are buying in countries where the spread is more to your country's advantage.

If you start with small gear, you can roll your profits into getting yourself the means to move larger gear.

depulse · Posted: Tue Mar 10, 2009 10:40 am Post subject:

Within the EU countries there is a single market, the governments can't stop products and services to the imported and exported. If everything goes according to the plan Croatia will join in 2011. You just have to wait until then. Have you checked prices in Germany?

mikemolloyuk · Posted: Tue Mar 10, 2009 12:31 pm Post subject:

KrzysiekK · Posted: Tue Mar 10, 2009 8:23 pm Post subject:

Sharp · Posted: Tue Mar 10, 2009 9:19 pm Post subject:

KrzysiekK · Posted: Tue Mar 10, 2009 9:20 pm Post subject:

thanks Sharp for the tip; I was just comparing the official distributor's suggested prices in two Europe countries (megamusic.pl vs korg.de)

btw. the value of the bundle at Thomann is around €45 which would give the final price around 1979-45 ~= €1930, still way to go to €1836

kenackr · Posted: Wed Mar 11, 2009 3:30 pm Post subject:

I believe your statement about Korg in Japan has nothing to do with it is true.

I also believe that the problem is shared between government taxes & fees and the local distributors.
_________________
O88, T1, Wavestation, M1r, Pa 4X 76, Proteus 1-3, Morpheus, UltraProteus, K1200, Akai S2000, DP8