Nakamichi has made a significant decision regarding the pricing of DRAGON. After a thorough evaluation of our production and shipping processes, we have determined that a price increase is necessary. We will continue to honor the current preorder pricing of $3499.99 for 1000 units, while supplies last. After the 1000 units, DRAGON will be available at a new retail price of $3899.99. This pricing adjustment is implemented with the objective of addressing the challenges we are currently facing.
In recent months, we have encountered various obstacles that have impacted our production capacity. The intricate nature of DRAGON, with over 700 components and a meticulous 110-step hand assembly process across four production lines, has revealed the need for additional labor beyond our initial estimations. Furthermore, our stringent manufacturing requirements have led to a lengthier but vital post-assembly inspection process encompassing mechanical, acoustic, and functional tests. Despite optimizing our throughput to 25 systems per day, these factors have unexpectedly raised the cost of manual labor.
We have recently completely redesigned our packaging for DRAGON to ensure compliance with a 12-inch drop test. Each DRAGON unit weighs over 140 pounds, and this packaging overhaul is aimed at guaranteeing the utmost protection during transportation. Additionally, we collaborated with freight forwarders to optimize container loading, prioritizing damage prevention during the 30-day ocean voyage to the USA. This involved minimizing box stacking to prevent any potential crushing, which in turn limited the capacity of each 40ft high cube container to only 128 units. While these precautions are crucial for ensuring the safety of our products, they have resulted in significantly higher packaging and shipping expenses.
Therefore, in order to ensure the sustainability of providing DRAGON to our esteemed Nakamichi fans, we must take the necessary measures to address these challenges. The price adjustment will enable us to uphold DRAGON's production capacity and world-class quality while providing an attractive price-to-performance ratio in the market.
We understand that price adjustments can be a sensitive matter. Rest assured that this decision was made after careful consideration and analysis of producing 500 DRAGON systems. We greatly appreciate your understanding.
Thank you for your unwavering dedication and commitment to helping us redefine expectations of plug-and-play home theater solutions.