Wet Sounds is enacting an across the board price increase to boost dealer margins by as much as 37 percent for some products. The increases, in many cases are independent of the recent tariffs on Chinese products, it said.
Effective January 2, the company will significantly increase dealer profits on all products. On REVO speakers, for example, Wet Sounds plans to increase end user prices by as much as 14 percent, while boosting dealer profits by as much as 33 percent.
CEO JR Stocks said he has sought to enact this change since he took the post in March. Stocks background is in retail at leading chains such as Custom Sounds, TX; Freeman’s Car Stereo, NC and the former Myer-Emco, VA.
“Having been a dealer, I think our retail price points weren’t what they should be. There’s just certain figures that make sense: $319 is not a price point…$329, $349, $379 and $399 are your price points. That’s how a retailer thinks. By addressing that, we were able to build some margin into the products for the dealers,” he said.
While the decision to boost prices and margins predated the tariffs, Wet Sounds will also respond to the current 10 percent tariff on amplifiers. “We are planning to raise prices [on amplifiers], but on average by only 10% while increasing dealer profits by as much as 37 percent, as we’re more focused on raising profitability for dealers, which couldn’t be more challenging , when you have tariffs hanging over your head,” Stocks said.
“We want to be the easiest company to do business with…This was one of the first things I realized we needed to do when I came on. And you can’t make a mid-year price change, so I’ve been sitting on this for 8 months. I’ll be excited when we can get it rolled out,” he said.
Photo: JR Stocks, Wet Sounds CEO
That’s rich
This is a positive step for dealers for sure!
Way to go, JR! You were always a smart man and this move will only solidify your companies position in the market.