What to upgrade first for better sound quality?

Yes that is what I have for equipment. But before I upgrade to MC cartridge I need phono stage. Since the MAC has a low input impedance on line stages of 20k I need to make sure it is compatible. Right now I'm leaning towards the Herron VTPH-2 but am still looking for other options too.

If you want to eventually move to a MC cart. I would stay away from the lower priced ARC phono preamps. The PH8 or Ref Pnono 2 would be better choices.

I have a Fosgate Signature phono stage. This is a great sounding tube phone preamp that is highly adjustable. I am using a Benz Zebra wood LO MC cart with absolutely no problem.

Sorry about jumping into this topic late. I have an ASR Mini Basis Exclusive phono amp and it made my Thorens TD 145/Grado ME + mono sing, which is really saying something. Now I'm waiting for a low output Grado Statement Sonata 1 mono and will pair it with the ASR phono amp and TD 145. I do have a Herbies record mat on the TD 145 and that was crazy good from the very start. So I'm slowly turning the Thorens TD 145 into a Franken-thorens but I'm currently using the stock TP 16 tonearm.
But the overall point being that the ASR Mini Basis is a great phono stage for its price and it will support all cartridge types, even low output cartridges. It reaches up to 72 decibels of gain if I'm not mistaken.
I can hardly wait to receive my new Grado and being as such, posted a topic concerning cartridge alignment in the Tech Talk forum.

In my experience, the more money you spend, the better the results....given well respected name brands. As you get to the top of the heap, your money buys ever smaller increases in performance.

09-17-15: Stringreen
In my experience, the more money you spend, the better the results..

In my experience the more you think how to spend money for best value the better results you get no matter how much you spend.