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Old 07-05-2012 | 04:18 AM
  #43  
GerKonig
 
Joined: Mar 2005
Posts: 1,990
Received 1 Like on 1 Post
From: Levittown, PA
Default RE: Big jump in kit prices at Tower


ORIGINAL: eddieC

As for kit prices in general, it's Capitalism. Charge what the market will bear, it has NO bearing on what an item costs to produce.

Back in the late 70's, Chevy Impalas were sold out in the US. GM had a choice of building a new plant to meet demand, or raise the price a few thousand. They didn't build the plant! [X(]

Thank the same business-school experts for where we are now, including the lack of resonably-priced kits. I know kit-building is in the decline, but Tower and others don't have to take advantage with such huge price increases. Vote with your feet/wallet. I'm looking into kit cutters as an alternative.

You are 100% right. the answer you will get is most likely a lie. Like "I blame the wind turbines". There are naive people that believe that the prices of these items are cost-dependent. No, they are in response of a very careful and planned pricing strategy.

Look at the small Top flit Corsair. They came out with an outrageous price, and they obviously sold. Well, then they increase something else. The market sets the prices, and one wants to maximize the profits (always). If it does not sell, you will see sales after sales. Rarely they just go and change the price of an item.

If you ask, you will never get a price decision maker on the phone, and if you do, he will lie to you anyway:-) They have the lies already prepared too:-)

Gerry