Kenwood is changing its pricing strategy in reaction to tariffs on Chinese goods including amplifiers.
It is switching to an across the board 2 percent increase in dealer cost on ALL Kenwood products even if they are not made in China, nor subject to a tariff, confirmed VP Sales & Marketing Mike Roberts. And it is reversing its June 1 price hike on amplifiers. All amplifiers return to the original pricing prior to June 1 plus the new 2 percent cost increase.
Minimum Advertised Price (MAP) will remain the same on all Kenwood products.
By spreading out a price hike across all products, Kenwood prevents larger increases on specific products, including high end amplifiers. Under the earlier Kenwood program, amplifier prices had risen from $20 on MAP pricing up to $200.
Under the new 2 percent increase, a speaker that costs a dealer $50 will increase in price by only a dollar, said Roberts, adding, “As you will see, the impact is negligible and we feel strongly this was the best course to minimize the effect on everyone downstream.”
On June 1, the tariff on amplifiers (List 3) was enacted at 25 percent. Finished car audio speakers were hit with a 15 percent tariff September 1 (List 4A).