Morgan Amps: "Tariffs could increase amp prices by $1050"

[Lysander]

We all now live in interesting times.

"Not trying to be political but just did some hard math last night trying to determine how these 25% tariffs will effect my business. Here it is.

For every dollar I spend in manufacturing it costs the consumer 3.50. Mfg costs + my profit margin + dealer profit. My cost metrics are WAY cheaper than most manufacturers. That is why they cannot make amps in the USA or the uk. Most have an 6x up to 10x cost delta because of the amount of infrastructure it takes to be a Marshall or a Fender. So when my parts cost increase. By 25% for the materials coming from Canada (transformers, aluminum, wood) it increases the cost of an AC20 DELUXE by 300.00. This 300.00 in manufacturing costs ends up costing the consumer 1050.00.

Costs have increased across the board for everything. Tube prices have basically doubled. We can’t afford to play these kind of saber rattling games. It just doesn’t make economic sense. Call or write your senators and congress people and let them know how you feel.

****edit - I don’t care which side of this argument you are on. Be an American and voice your opinion to your senator or congressman. Either way is fine by me I was just trying to show tangibly what it looks like to an American small business. *****"

 

[TheTrueZoltan!]

As a European with a very strong opinion about the USA's new government, I better stay out of this.

 

[SillyOctpuss]

As a European with a very strong opinion about the USA's new government, I better stay out of this.

Self Edit - I whinged at someone who posted some political points a few days ago so it would be hypocritical to leave mine here.

I will say that there are still amp manufacturers in the UK though.

 

[newholland]

As a European with a very strong opinion about the USA's new government, I better stay out of this.

believe me as an american, you aren't the only one with strong opinions that arent being represented.

 

[laxu]

The tariff nonsense is why I was reluctant to jump into the Synergy stuff and went with the used Mark V instead. While US tariffs should not make guitar gear more expensive in EU, EU countries are likely to counter with their own tariffs on US products. It's just never good for anyone involved.

Knowing myself even if I picked just a couple of modules and settled on that, eventually I'd want to buy other ones. If the cost of modules increases by 25% from 399-444 € to 499-555 €, it becomes much harder to justify buying them. There's plenty of good tube amps in say the 700-1000 € range on the used market. The modules are also harder to sell because not many have Synergy setups.

Smaller tube amp manufacturers are not able to e.g open up a factory in Europe that could produce the same amps here to get around the tariffs. My understanding is that BAD already makes e.g US sold Diezels? So if they were to do that, but make Friedman/Synergy etc in EU then it might work out. But it's a big investment unless they can partner with some existing manufacturer.

I hate to think what this might do for the cost of future modelers, especially Fractal that has been traditionally US assembled.

The only good thing about all this is a more unified Europe.

 

[Lysander]

I hate to think what this might do for the cost of future modelers, especially Fractal that has been traditionally US assembled.

It was one of the factors helping me decide to pull the trigger on a FM3. As high as prices for Fractal are in Europe today, it's only going to get worse.

 

[paisleywookiee]

I have a feeling this thread will be axed, but I’m sorry, Europeans.

 

[SillyOctpuss]

It was one of the factors helping me decide to pull the trigger on a FM3. As high as prices for Fractal are in Europe today, it's only going to get worse.

Shit I hadn't thought about that. I really want a VP4 but it'll be a while before I've got the cash set aside. Hmm, I really need to look and see if I can move anything on to fund it.

 

[AutomationBias]

Man, that sucks.

 

[HomespunEffects]

I come here to get away from this garbage. Covert political discussion is still political discussion.

 

[newholland]

I come here to get away from this garbage. Covert political discussion is still political discussion.

economics affects what we are able to get and cant to be able to play, so it's hardly covert. if youd like to limit what people think about wrt to access of gear, thats your prerogative- but nobodys hiding. nobodys screaming any political opinions- but the economics of tariffs do affect us. thats just reality in an interconnected worldwide economy.

 

[HomespunEffects]

economics affects what we are able to get and cant to be able to play, so it's hardly covert. if youd like to limit what people think about wrt to access of gear, thats your prerogative- but nobodys hiding. nobodys screaming any political opinions- but the economics of tariffs do affect us. thats just reality in an interconnected worldwide economy.

Egads, man. I’m talking about the political opinions mentioned in the “i don’t want to get political but…” and “I’ll withhold strong opinions yet clearly let them be known about a political figure”.

This is clearly a political discussion from the start.

 

[Mikael Dez]

economics affects what we are able to get and cant to be able to play, so it's hardly covert. if youd like to limit what people think about wrt to access of gear, thats your prerogative- but nobodys hiding. nobodys screaming any political opinions- but the economics of tariffs do affect us. thats just reality in an interconnected worldwide economy.

Precisely. It isn’t politics to say that a thing happening is happening without arguing over who or what caused it. Just talking about tariffs should not be discouraged whatsoever, especially as it pertains to this gear chasing hobby.

 

[HomespunEffects]

Precisely. It isn’t politics to say that a thing happening is happening without arguing over who or what caused it. Just talking about tariffs should not be discouraged whatsoever, especially as it pertains to this gear chasing hobby.

I’m just going to start talking about corruption in the church and hide behind “i don’t want to get religious but …”.

 

[laxu]

I’m just going to start talking about corruption in the church and hide behind “i don’t want to get religious but …”.

If you can tie that to how all those praise and worship players are part of a cabal that is pushing people to buy boutique pedals, I'm interested in hearing your argument.

 

[GTR37]

Joe Morgan has never really been a stand up guy
So any chance he has to make an excuse to overcharge he would use
He could reduce his profit margins slightly but he would prefer to pass that off on the buyer
I am not saying tariffs will not impact other companies
I am just not surprised Joe is the first one to announce a huge price increase

 

[Lysander]

I come here to get away from this garbage. Covert political discussion is still political discussion.

FWIW, i had zero political intent when I posted this. The fact that amp manufacturers warn prices are about to increase 30% seemed kinda relevant for a guitar gear forum...

 

[newholland]

I’m just going to start talking about corruption in the church and hide behind “i don’t want to get religious but …”.

no, what youre saying, indirectly, is that international economic reality isnt affected by politics, and that by mentioning policies made therein, we're being 'political'. im saying, it absolutely isnt necessarily so. the decisions made in global economies have repercussions that cause ripples globally. id love to have cheap tubes. but theyre largely made in russia. the world said nope to supporting their politics. now we all pay for the decisionmaking am i making playing a solid state amp a political fight? is playing tube amps me supporting putin and the war in ukraine? of course not.

Nor is it the same as talking about churches not the same, because you can also choose your religion. i certainly cant choose world economic structures.

breathe easy. reality can be separated into how it affects us and what we believe, and theyre not the same thing.

 

[HomespunEffects]

no, what youre saying, indirectly, is that international economic reality isnt affected by politics, and that by mentioning policies made therein, we're being 'political'. im saying, it absolutely isnt necessarily so. the decisions made in global economies have repercussions that cause ripples globally. id love to have cheap tubes. but theyre largely made in russia. the world said nope to supporting their politics. now we all pay for the decisionmaking am i making playing a solid state amp a political fight? is playing tube amps me supporting putin and the war in ukraine? of course not.

Nor is it the same as talking about churches not the same, because you can also choose your religion. i certainly cant choose world economic structures.

breathe easy. reality can be separated into how it affects us and what we believe, and theyre not the same thing.

However, it invites comments like post 2 and 4 and 7 that are exactly and overtly political. It’s only one foot in a cow turd, I guess, but it still stinks.

 

[Rock Chalk]

Joe Morgan has never really been a stand up guy
So any chance he has to make an excuse to overcharge he would use
He could reduce his profit margins slightly but he would prefer to pass that off on the buyer
I am not saying tariffs will not impact other companies
I am just not surprised Joe is the first one to announce a huge price increase

I'm all for low prices, and I don't know Joe Morgan personally, but calling a guy out just because he won't "absorb" a 25% tariff is kinda nuts if you ask me.