Prices

Posted by: Reto D on 22 August 2001

Hi,

everybody is talking about prices. Of course Naim
equipment was/is/and will always be expensiv. If
you buy a Porsche you will get a perfect car, and
of course it's expensive. You pay the qualitiy
and certainly the name as well.

Naim is exactly that kind of equipment. You pay
the quality and you pay the name.

Why do we pay the name? Because it's worth it!
Behind the name there's a lot of work and brain.

25 years at the top of the market. This fact alone
costs money.

We buy it because we love it?

Reto

Posted on: 22 August 2001 by Arye_Gur

Do you mean that a component made by Naim can be on the markert with "x" price, but the people in Naim are thinking - we can take "2x" of the price because of the Naim tag.

If that is what you are thinking, this is an interesting accusation, I wonder if Naim have something to say about it.

Arye

Posted on: 22 August 2001 by Reto D

Hi again,

I'm from the German part of Switzerland but of course a Ferrari would do it as well.

Insider generally know Naim as one of the
rather famous brands within the small market
of top hi fi products and that's what I meant.

A good market recognition has an effect on the
price.

We all pay that and are happy with it.

Aren't we?

Posted on: 22 August 2001 by Matthew T

But what does the name Naim stand for.

Longevity?
Quality?
Performance?
Value (probably not so much)?

Longevity requires profit and it would be a surprise to majority of Western markets that 20 years after a product is made it can be 'revitalised' to be as good as new. Is this worth paying the extra bit to make sure Naim don't go into liquidation.

Quality costs money, how much dictates how high.

Performance depends on each persons tastes.

Value depends on each persons wallet and degree of addiction.

Besides this any business is out to make money, if you feel Naim doesn't represent good value (to you) then shop elsewhere, otherwise pay up - even if our friends at are Naim are lining their pockets, which would only go to show how good their products really are!

Matthew

[This message was edited by Matthew T on WEDNESDAY 22 August 2001 at 15:57.]

Posted on: 22 August 2001 by bam

I'm told that something is worth what someone will pay for it. So Naim must be of acceptable value to its customers

or else its customers are stupid

Of course it is not acceptable value to all those other folk who know about it but buy something else.

Anyhow, does anyone know how well Naim is doing as a business? What revenue and profit margin do they make? Just interested.

Posted on: 22 August 2001 by David Dever

quote:
Anyhow, does anyone know how well Naim is doing as a business? What revenue and profit margin do they make? Just interested.

I doubt you'll get exact figures, but perhaps the more relevant question pertains to the ratio of revenue to R & D spending...

As Naim (or any company, for that matter) gets more successful (definition of which is a question unto itself), the amount of money available for product development increases, and, as a consequence, the development time decreases.

Though this may be a no-brainer, I know few (if any) segments of the consumer electronics industry (including accessories) whose market climate doesn't demand some development effort over time in order to survive, let alone succeed.

Unless one's intent is to shepherd a cottage industry mentality forever, a company needs to continually improve one's products (not merely change their stripes) and to add new ones to the product mix.

Posted on: 22 August 2001 by bam

Dave,
Are you/were you a Naim dealer? If so do you know what Naim's $ sales growth has been in the last few years?
BAM

Posted on: 22 August 2001 by David Dever

quote:
Are you/were you a Naim dealer? If so do you know what Naim's $ sales growth has been in the last few years?

Can't speak for Naim directly, but NANA's sales have at least doubled over the almost six-year period that I've been here (conservative estimate; no, it's not my fault, honest!), thanks to a host of factors best described by my post above.

Dave Dever, NANA

Posted on: 22 August 2001 by JRHardee

Who owns Naim? Is it publicly traded?

Posted on: 22 August 2001 by bam

Naim is a private limited company. Turnover of about £6m last year. Median profit margins in Naim's peer group of 66 similar companies have ranged from about 5% to 15% in the last 5 years and net sales have been flat to declining. Gross margins are about 40% which is healthy.