Audiovox and Maxxsonics are planning price increases and JL Audio is not ruling out another hike this year with the cost of rare earth metals rising and gas prices still spiking.
Audiovox Electronics will up prices on some products by 5 to 7 percent in May, including car security, remote start and accessory product lines, said president Tom Malone. That will be followed by increases in car audio and video products at some point.
Margins are expect to hold steady. Malone said, “If the price of a remote start was $249 and now needs to be $27, it’s really not going to affect the velocity of sales of those categories. Dealers are going to push prices up a bit and keep their gross margins. “
JL Audio may raise prices for a second time this year. “If you go to the grocery store you see price increases. To expect car audio to be immune is unrealistic. We have been waiting it out. Everyone’s been reluctant to raise prices….as soon as company A does it, we think companies B and C will follow; it will come in rapid succession. We did a little and there may be more,” said JL Audio’s VP marketing Manville Smith.
Maxxsonics too has already raised prices on a few select amplifiers and expects more increases. “We are going to raise prices as we get our raises [on parts costs]. Expect them to be about 3 to 5 percent,” said Ted Henricks, VP sales & marketing
A full line car audio supplier who wished to remain anonymous said it was already notifying accounts of select price hikes effective July 1.
Other suppliers said privately that they expect to raise prices this year.
DEI Holdings CEO Jim Minarik said the company is not raising prices yet but noted, “We agree with industry observers who are in nearly unanimous agreement that some price increases are going to be unavoidable in the months and years ahead…”
Photo via Drive-In Autosound