@ PandaR1
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Hi Nick,
When you reached out to me for a comment related to our price reduction, I was happy to explain the reasons behind it since we at Music Tribe respect you and your magazine. Frankly, I was quite surprised about the tone of your article.
You used terms like "cynical commercialism" which I am frankly struggling with. In my book, cynicism is such a terrible mindset that I feel compelled to respond to you.
Let's be very clear, we as a company must make a profit in order to survive and grow, which goes for every other company and surely your own business too, Nick.
30 years ago I started Behringer with the philosophy "Double the Features at Half the Price" which we later expanded to "We Hear You".
As a kid and later struggling musician and sound engineer, I couldn't afford any of the equipment in the market, let alone synthesizers. I literally spent days in music stores playing those synths and drum machines until the shop owners would kick me out, since they knew I would never buy anything.
At the age of 16, the only way I could solve that problem was to build my own synthesizer. However this early experience and deep frustration of not being able to afford equipment made me appreciate the challenges other people go through. I learned this again during my university times when my friends and I could not afford the equipment we needed in order to practice and this was the time I decided to make it the mission in my life to try to solve this problem.
We at Music Tribe with all our 12 brands believe in empowering creatives by providing our customers with tools and services they desire at prices they can afford.
Our philosophy is to carefully listen to our customers and build what they want us to build. Often people come up with great new ideas or they simply request us to make a product that follows a competitor but at a lower price. Provided it is within the law, we will pursue those requests as our loyalty belongs to our customers.
When it comes to pricing, we have always used the "bottom up" calculation method, which means we take our manufacturing cost as a base, add a small profit for us and on top the typical retailer margin.
Our competitors usually set their pricing based on what they believe customers would be willing to pay for a product in order to maximize their profit. We however believe that our low-margin strategy will earn us a long-term loyalty.
We further believe that adding affordable products such as synthesizers to the market will open up a complete new customer base. Many marketing studies have demonstrated that broadening the market with low cost offerings will not eliminate the competition as you insinuate but on the contrary, increase overall sales as a strong awareness for the overall category is created.
We at Music Tribe are very different and we're proud to be different. We try to be everything but corporate; for example we have no board of directors, no C-level executives and I have pledged that everything we earn gets reinvested.
Whether this means creating new R&D centers which we are now establishing in locations such as Manchester (U.K.), Aarhus (Denmark), Willich (Germany) and Nevada (US) or investing in a highly automated factory, our sole purpose is to deliver great products for our customers at prices they can afford.
As an extreme minimalist myself, money has never been a driver for me. But it is an important tool that allows you to pursue things you are passionate about. As an engineer I love building businesses, systems and infrastructure while as a musician my passion is playing keyboards and designing synths, drum machines etc. Going back to my roots 40 years later, and designing synthesizers again is a joy that's hard to describe. In fact, I can tell you that building some of these synths makes no commercial sense but it's so much fun that I simply don't care whether