MTX Raises Prices

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MTX 9512

MTX said it has raised its car audio prices this year by about 20 percent or more and boosted margins for retailers under its Internet direct-ordering system launched last year.

In 2013, MTX dropped its prices by 40 percent after eliminating distributors and switching to a direct online ordering system in order to try to eliminate web discounting. Margins, however remained at a low 20 percent on many products for dealers.

This year, the company has increased margins to 35 percent after raising prices, and revamped much of its product line of amplifiers and speakers.  A popular Thunder 1000.1 amplifier sold for $229 last year and now sells for $349.

After launching new products last year and this year, MTX ‘s Joe Trentacoste said, “The majority of our SKUs (stock keeping units) have never been in distribution.  Last year, there were still a lot of SKUs that were still in gray markets… most of that stuff is gone,so we can now raise prices to allow our dealers to make more money.”

The company also sells direct to key accounts such as Crutchfield, and has increased pricing for these accounts, as well.

In the past, “we sold to distributors and product was all over the Internet being discounted so we had to do that [drop prices] to compete with ourselves… “We’ve successfully cleaned up the distribution..” said MTX’s Mike Roberts.

Among the new products this year are the key-seller 9500 wooferswhich “went away” a couple of years ago and return as the near top of the line series, second only to the Jackhammer (which is mainly a showpiece speaker at $13,000).

The 9500 subwoofers comes in 12 and 15 inch sizes at $699 and $799 in dual 2- or dual 4-ohm configurations.

Source: CEoutlook

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