Does this price increase seem correct???
- Thread starter acrouse
- Start date
there have been price increases in raw materials, components, and overhead-related costs.
You have missed the point. It is not only the material but all the other things that associated with a business. However, I am glad that you have voiced your oppinion now you sound more fair in your comments. Thanks.
Lizzi
You have missed the point. It is not only the material but all the other things that associated with a business. However, I am glad that you have voiced your oppinion now you sound more fair in your comments. Thanks.
Lizzi
GuySmilie
Premium Member
I have not missed the point.
Having been in business in a prior life, I am fully aware that a biz owner has to defend his decisions, right or wrong. Not to be contrary, but I believe that Aquactinic has missed the point on this one.
If a biz raises the retail set point price so that a newly-initiated dealer network can make a fair profit as well, then as a biz you have to know that your volume (that's units sold), is going to go up considerably - due to better market saturation.
And when making this transition from single source supplier to one of wholesaler to a dealer network, you are safe in lowering your profit margin because you know you will make it up in volume. And I think Aquactinics either does not yet trust the new business model, or they are just being greedy and skinning a cat that wants skinned.
But that just my feelings on the subject; yours may deviate.
Having been in business in a prior life, I am fully aware that a biz owner has to defend his decisions, right or wrong. Not to be contrary, but I believe that Aquactinic has missed the point on this one.
If a biz raises the retail set point price so that a newly-initiated dealer network can make a fair profit as well, then as a biz you have to know that your volume (that's units sold), is going to go up considerably - due to better market saturation.
And when making this transition from single source supplier to one of wholesaler to a dealer network, you are safe in lowering your profit margin because you know you will make it up in volume. And I think Aquactinics either does not yet trust the new business model, or they are just being greedy and skinning a cat that wants skinned.
But that just my feelings on the subject; yours may deviate.
This increase seems similar to what All Seas Marine did to their ASM skimmers. It seems as soon as the product gained in popularity, they jacked up the pricing.
This could very well be a big mistake IMO as people who were/are attracted to this product will now look elsewhere.
This could very well be a big mistake IMO as people who were/are attracted to this product will now look elsewhere.
billwarren
New member
Are these increases warranted?
Are these increases warranted?
I think a lot of people on this forum are slamming this company unfairly..... I can tell you from personal experience as a business owner my cost of doing business has gone up dramatically in the last year. I own a company that sells gun magazines and many of the Factory made gun magazines I sell have TRIPLED in price in the last 24 months. I am told the cost of metals has gone up dramatically. I have also started working directly with manufacturers and one of them showed me his invoices for metal a year ago and for metal at today's prices and the increase has been huge. Obviously this is going to effect a lighting company because most of the product is metal. Even more so if the metal is aluminum! Another increase I have seen is the cost of shipping my products. The recent increase in postal rates has had very little effect on the average consumer but for businesses it is a different story. Most of my products are small and lightweight and were prevoiusly classified as "First class letter/flat". They are now classified as "First class Parcel" which has increased my shipping costs 100%-150% per item! I ship thousands of these a month and the impact has been HUGE! It just makes sense that the cost of materials and cost of shipping is affecting all companies so you are going to see increases. It may interest you to know that area of the country has had a 50% increase in the cost of electricity! Folks that is a HUGE cost for a manufacturing company.
In case no one has noticed the cost of the chinese made products has increased as well. Keep in mind that the increase here is at the "Retail" end. It is not a secret that most owners of retail fish stores demand a rediculous profit on the items they sell. I have a friend that owns a very large fish store locally and I have seen his invoices and I know the profit margins he demands and it blows me away! Nobody likes to see the price of things go up but it is a fact of life and we all have to live with it. Before you start slamming a company you might want to put yourself in their shoes. You might see things a little differently once you have some cold hard facts..........Bill Warren....Owner...Gunclip Depot
Are these increases warranted?
I think a lot of people on this forum are slamming this company unfairly..... I can tell you from personal experience as a business owner my cost of doing business has gone up dramatically in the last year. I own a company that sells gun magazines and many of the Factory made gun magazines I sell have TRIPLED in price in the last 24 months. I am told the cost of metals has gone up dramatically. I have also started working directly with manufacturers and one of them showed me his invoices for metal a year ago and for metal at today's prices and the increase has been huge. Obviously this is going to effect a lighting company because most of the product is metal. Even more so if the metal is aluminum! Another increase I have seen is the cost of shipping my products. The recent increase in postal rates has had very little effect on the average consumer but for businesses it is a different story. Most of my products are small and lightweight and were prevoiusly classified as "First class letter/flat". They are now classified as "First class Parcel" which has increased my shipping costs 100%-150% per item! I ship thousands of these a month and the impact has been HUGE! It just makes sense that the cost of materials and cost of shipping is affecting all companies so you are going to see increases. It may interest you to know that area of the country has had a 50% increase in the cost of electricity! Folks that is a HUGE cost for a manufacturing company.
In case no one has noticed the cost of the chinese made products has increased as well. Keep in mind that the increase here is at the "Retail" end. It is not a secret that most owners of retail fish stores demand a rediculous profit on the items they sell. I have a friend that owns a very large fish store locally and I have seen his invoices and I know the profit margins he demands and it blows me away! Nobody likes to see the price of things go up but it is a fact of life and we all have to live with it. Before you start slamming a company you might want to put yourself in their shoes. You might see things a little differently once you have some cold hard facts..........Bill Warren....Owner...Gunclip Depot
billwarren
New member
I don't see what that has to do with what I was talking about.
billwarren
New member
I know of a local fish store where customers wait for the owner to return with fresh corals and livestock and he sells them right out of the bags. There are very few left to feed and the lights are on regardless of weather there are fish in the tanks or not. And my other friend spent OVER 100,000 on vehicles last year. Someone is paying for those suv's and his 3700sq ft house complete with pool, spa and all the trimmings. I know I have made my contribution.....
OneDayMatt
New member
You don't have boycott power unless you have the ability to purchase something. Without the "able" part of willing and able, you are not a component of demand anyway. Economics 101
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