Price Increase

[xlr8or]

What's the big deal? If you couldn't afford one before, you still can't. If you could you probably still can.
If you can't there are still plenty of alternatives.

[RON N BKFLD]

I sold both of my Kirkhams last year. Used the money too pay my house off. One year of morgage interest was a hell of a lot more than the price increase on the rollers. It was a tough choice, but it was a very profitable one.........Ron

[Bill Bess]

Seems to me that many years ago a German rear engined sports car got very expensive overnight. The concept was ..why make more cars, just make them more expensive..we will make the same amount of profit on fewer cars.
For the most part, high priced cars arn't really that much more superior to the run of the mill , they just seem better, that way folks that like to spend more have better bragging rights.
Just the way I see it...they all have engines and go like hell, the real quality is the build it'self, the rest is strictly perception.

[madmaxx]

pull up a high grade aluminium price chart, aluminium is the same price today as it was in 2005 and substantially lower than in 2008. Ignorance is bliss.

[Dimis]

Originally Posted by madmaxx

pull up a high grade aluminium price chart, aluminium is the same price today as it was in 2005 and substantially lower than in 2008. Ignorance is bliss.

You're kidding aren't you?

Aluminum price chart, 2000-2011

'cos I don't see it?

I see "absorbing cost" as the price most probably calculated on 1990-2004/5 price avgs.

[Trueoo7]

What about "quantity" and mass production? If you raise the price you ultimately lose customers. If you increase production you bring down the price and increase customers much like TV's.
When flat screens first came out they were a fortune (ex. 52" TV cost $2300 two years ago, same TV now costs half of that because production increased which brought the costs down) Quality is as good, if not better than original.

So their price increase doesn't necessarily make them more money, it probably keeps them flat or their head above water because they have decreased their potential customer base by putting their product further out of reach for another 25% or so of society.

[Mark IV]

Originally Posted by Trueoo7

What about "quantity" and mass production? If you raise the price you ultimately lose customers. If you increase production you bring down the price and increase customers much like TV's.
When flat screens first came out they were a fortune (ex. 52" TV cost $2300 two years ago, same TV now costs half of that because production increased which brought the costs down) Quality is as good, if not better than original.

So their price increase doesn't necessarily make them more money, it probably keeps them flat or their head above water because they have decreased their potential customer base by putting their product further out of reach for another 25% or so of society.

"mass production" is an oxymoron when talking about production levels that we are seeing in the "Cobra" industry. The ecomonies of scale are almost non-existant at these levels of production. People, this is not GM we are talking about!

The price increase probably only brings them closer to where they need to be, indeed most all of the "bigger" players in the business have recently increased pricing (Kirkham, Shelby, SPF, etc.) in an attempt to recover some of the margin they have given away over the last few years in a attempt to keep some sort of sales volume alive. Indeed most all of the manufacturers have held pricing over the last few years in an attempt to generate sales and perhaps at least stay in business. While it might keep you alive, it does not keep you healthy.

As to "pricing out of 25% of the market" you cannot aim your product and business plan at a segment of the population that really can't afford or justify owning your product. Could Kirkham sell a buttload of cars at $9,995.00? Sure! But what does that do to the long term value and moreso the long term business plan? Most of the "Cobra" manufacturers are amazed that the market has still not yet been saturated and that there is still a decent sized market to sell to. In marketing there is a "sweet spot" where the price to volume curves intersect and I think most of the manufacturers believe they are now at that point. I know for a fact that I could sell more SPFs at a lower price point but for how long? When the factory is out of business so will I be....there must be a little bit left for all when the bills are paid, otherwise why bother?

[392cobra]

It always amazes me how folks identify so much with a product that they think they run the company.

[PANAVIA]

In working with Thomas on various things and reviewing the section of the Cobra market - held by the Kirkham produced chassis, I am pleasantly surprised every time we interact with them and their products.

It is all about whatever flavor of Ice-Cream you like and want. - for some folks, they are just happy with the grocery store brand of vanilla , and there is millions of gallons of that stuff sold each year.

People tell themselves it s about affordability, but it is really about something else. For some, it may be external pressures, it may be spousal restrictions or some sort of internal budgeting of resources.

You may explain it to yourself and rationalize. Sure, you can pour a bit of creme-de-menth' on it for effect.

However, if you have the opportunity to break free and get to a place where you can acquire a pint or two of nicely done butter pecan, or new york super fudge chunk then you will never want to go back to the Lucerne Vanilla if you can help it.

69K for The kirkham flavor is well worth it, they were under market at 54K -- shame on me for not getting one sooner.

Afterall you can pay more for less in many places, - but Kirkham is not it.
You definitively get what you pay for - and then some.

not to mention piece of mind.

Some folks want to "build" their car, others want to construct , others want to assemble.

Bottom line ; whatever flavor of Ice Cream is your favorite, go for it - !

Steve