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Sonos to Increase Prices Due to Tariffs
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Yes but companies only really concentrate on their biggest markets because the biggest markets creates the largest amount of sales and thus biggest amount of profits. If the US is not their biggest market then Sonos has nothing to worry aboutYou do realize that there are customers and markets beyond the United States?
Love Sonos but their prices are already way too high. Wireless speakers are proprietary and only works with their own equipment. There is a lot to choose from and cheaper.
And that is exactly what companies around the world is now focusing on instead of USA, thanks to Trump.You do realize that there are customers and markets beyond the United States?
Here’s what’s interesting: The tariff deals Trump is making, for instance with EU, means higher tariffs on goods into US and lower tariffs on goods into EU (from US). This helps European consumers, and hurts American consumers. A Sonos price hike is an example of exactly this. How long will it take for American consumers to figure that out?
Do you (royal You) really think any company will shift production of goods sold in EU from China to US, because the tariff from US is now 0 percent instead of 2 percent? Clearly not. So, the companies are looking into potentially moving manufacturing of ONLY goods sold in US, to US. Not gonna happen, except maybe for really big companies that is clearly negotiating exceptions anyway.
Export from US gets zero benefits from these deals, because for the big markets the tariffs from US are already quite low. Which is the reason for the dubious calculation board - it was not an option to show actual tariffs, because for the significant markets they were already pretty low.
I don’t think so. If they could earn more money by raising prices, they would do it with or without tariffs. That’s how business works.
Stop with this narrative as it’s simple not true. Show me a country that’s revolting and I’ll bet it’s either 3rd world or bordering on it.
There’s always an alternative, nobody’s forcing those companies to make and sell those things. They could make and sell something else entirely, or they could quit and do something else for a living. Whether those alternatives are palatable to each individual is up to them.
US workers are also US consumers... It's generally a loose-loose situation: overseas jobs may be lost as exports to the US go down because fewer US consumers are buying the products due to the higher costs and those US consumers miss out on the goods they wanted to buy or have to pay a higher price for them
Is it better to raise only US prices by 15-20%, or raise global prices by 3-5% depending on the percentage of your sales that are in the US)?
Tariffs go up because of greed? I assumed they went up because the chief doesn’t know how tariffs work. But yeah, in the end, that’s driven by greed as well.
Sonos already answered that for you, because they already differentiate their pricing based on the taxes in each market. An Era 300 costs 449 USD in the US, but equivalent to 580 USD in EU. The difference is due to difference in taxes, VAT etc.
I repeat: If raising the prices in EU by 5% would earn them more money, they would have done it already. Keep in mind, what is relevant is not the earning per product. It is the total profit. More tariff in US means less total profit in US. Raising the price in EU will NOT HELP, it will only cost them even more money.
In conclusion: Yes, it is better to only raise the US price. But it may be that the total profit is highest without taking the full hit of the tariff. So you may see that the increase is less than the tariff. That will not be because they can magically dig up the money somewhere else, but because it may be what results in the least damage.
This is how sarcasm should be delivered.
But wait...the President said the origin country pays this, not our citizens...why did I believe him?
Sonos plans to raise prices for some of its products later this year because of tariff costs, the company said in its third fiscal quarter earnings presentation [PDF].
Sonos manufactures its devices in Vietnam and Malaysia, and the countries are facing tariffs of 20 percent and 19 percent, respectively. In the third fiscal quarter, tariffs cost Sonos $2.1 million, and the company estimated that costs would increase to $5 million in the fourth fiscal quarter of 2025. Sonos said that the estimate for 4Q 2025 reflects the prior 10 percent tariff rate on in-transit inventory that will arrive during the quarter, and future quarters "may differ."
To minimize the impact of tariffs, Sonos says that it will raise prices across its portfolio of products. Sonos also plans to invest in diversifying its geographic footprint to drive growth in the future.
Sonos did not outline which products will see price hikes, but said that the increases will come later in 2025.
Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Article Link: Sonos to Increase Prices Due to Tariffs
Yes, the intent is to use revenue from tariffs to avoid tax increases.
But Trump’s plans do not reduce the deficit at all. In fact, spending increases and tax cuts passed in the OBBBA will increase the deficit to record levels and add trillions to the national debt.
The issue is that a sales tax is regressive while an income tax is progressive.
Could be the end of Sonos…
Sonos plans to raise prices for some of its products later this year because of tariff costs, the company said in its third fiscal quarter earnings presentation [PDF].
Sonos manufactures its devices in Vietnam and Malaysia, and the countries are facing tariffs of 20 percent and 19 percent, respectively. In the third fiscal quarter, tariffs cost Sonos $2.1 million, and the company estimated that costs would increase to $5 million in the fourth fiscal quarter of 2025. Sonos said that the estimate for 4Q 2025 reflects the prior 10 percent tariff rate on in-transit inventory that will arrive during the quarter, and future quarters "may differ."
To minimize the impact of tariffs, Sonos says that it will raise prices across its portfolio of products. Sonos also plans to invest in diversifying its geographic footprint to drive growth in the future.
Sonos did not outline which products will see price hikes, but said that the increases will come later in 2025.
Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Article Link: Sonos to Increase Prices Due to Tariffs
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I do agree that any such tax on consumption tends to have an outsized impact on the poor. Here in Singapore, our government offsets the sales tax (basically our Goods and Services tax) with voucher rebates (which are indirectly funded from the revenue generated from taxation). I would still like to see both in effect though.
Yes, tariffs is a tax. This is what we have been trying to tell you, but you wouldn’t listen.
If you are happy with the deficit being paid by the low income group while the rich get richer, then yes this is the way.
US is Sonos’ biggest market. The tariffs is bad for Sonos, and they won’t be able to make it up elsewhere, because they haven’t properly breached China.
If that is the case then Sonos will be in serious financial trouble then if customers stop buying their products because they consider the too high.
If this is the same with many other companies in the US, raising prices because of the tariffs then they too will be in serious financial trouble if customers stop buying their products because they consider the prices too high.
The companies will only have 3 choices, 1) get trump to remove the tariffs, 2) go out of business because no one is buying their products thus their debts jus get bigger and bigger or 3) keep prices the same and take a hit on the profits.
No company will go for option 3 because profits is all they care about and they would rather the company go under and out of business than reduce their profits and yes that is how company owners think. Rather than keep the company running and turning over a small profit that helps to keep the company running, they would rather close the company down and make everyone redundant rather than reduce their profits.
This will not work for every company because not every company makes millions or billions of $$$ in profit every year thus smaller companies will be forced out of business because of the tariffs thus the Trump administration will have a decision to make, watch thousands of US businesses go under making tens of thousands of US citizens unemployed or remove the tariffs.
When I say they should absorb the tariffs it's to compete. Sonos margin is 43%, they can give some up. Their products are expensive and they last a long time. Bose just bought McIntosh Group one of the few American audio manufacturers so it's likely they will do something interesting with that purchase. I'm surprised no one has absorbed Sonos yet, especially with their app fiasco. All these mergers end up stifling competition and costing consumers more than they realize. Sonos is a 1.3 billion dollar company which is nothing compared to Apple.
Apple can absorb tariffs too, seriously it's a 3 trillion dollar company. People can't comprehend numbers that large. It's up to the companies to decide if they will pass the tariffs onto their products or absorb them for competitive reasons. Trump seems to think he can wave a magic wand and manufacturing comes back. I know that's not possible right now. Are you saying to give up because we don't have the capacity to do what the BRICS nations did? It took 40 years of greed to change us into a service economy and now the technology is even taking those jobs.
Apple can absorb tariffs too, seriously it's a 3 trillion dollar company. People can't comprehend numbers that large. It's up to the companies to decide if they will pass the tariffs onto their products or absorb them for competitive reasons. Trump seems to think he can wave a magic wand and manufacturing comes back. I know that's not possible right now. Are you saying to give up because we don't have the capacity to do what the BRICS nations did? It took 40 years of greed to change us into a service economy and now the technology is even taking those jobs.
Correct.
Correct.
I disagree. Most company owners will go bankrupt trying to keep their company IN business, not close the company if they don’t make a profit. Many companies are running for years, some for decades, without profit, in the hope that “one day…”
The problem with the tariffs is it gives you the worst of both worlds: It’s bad for consumers because prices go up, and it’s bad for companies because profits go down. In the short term it is good for billionaires because their taxes go down, but once their companies don’t make a profit any more, there is nothing to pay taxes from so it doesn’t help them.
Long term, tariffs are bad, period. There is no excuse. Open trade is what has created the universal wealth increase since the Industrial Revolution. That the US is horrible at distributing that wealth will not be solved by tariffs.
Correct.