Wednesday, January 30, 2019

My price gouging

Although I know stuff like this shouldn't bother me, but this has gotten under my skin a bit and I just want to vent. Today is January 30, 2019, last week, I believe Friday, Jason Chrisman at JC's Bees did a video featuring the grafting tray. I appreciate the video, thank you very much. Today I got a note from someone asking if I'd read the comments. Hadn't been there since I first saw the video so thought maybe I'd check them out. For the most part positive comments, some on the tray, some on Jason's truck. There was one that kind of set me off, that my price gouging is ridiculous. I wanted to immediately respond but thought better of it. Drove home and since it still bothered me I thought I just might write a blog. Some history on the products. The frame fingers were first. Made a bunch from scrap, sent out a LOT of samples all over the country with some response but nothing great. Then the queen disk came about 1 year later. The first responses were that it was a dumb idea. I'd like to have a few more ideas just as dumb. Again the first disks were made from scrap on some free machine time. Sold them very cheap, in fact I set a price before finding out what postage would cost. It's fifty cents for the bubble mailer and $3.38 for postage up to 8 ounces. (That's why I charge $3.95 for shipping, a few cents for tape). When I started receiving more orders and it became apparent that this item would sell, I spoke with a financial advisor. I needed to set up manufacturing and incorporate as a company. We figured out what the material cost, the fact that the owner of the shop where I work didn't mind me making a few items but if I'm running an actual business on his machines I needed to pay for them. And while I think my profits and losses are no-ones business but mine, the state and federal governments both think differently. When one adds up the material, the machine costs, state corporate, sales and income taxes, then the federal taxes too it's amazing how much our silent partners take away. Then there was the question of what I wanted to pay myself, something that a lot of small business owners don't think about. I told him that I wanted to keep prices down to where the average tinkerer, like me, won't go make his/her own, but I could still make some profit. So we came up with the current prices. It's still possible for someone with the tools and skills to copy my stuff for less than my selling price but that assumes their time has no value. The tray was a real tough one for me. I fought pretty hard to get that price lower. My initial desire was $50 to include shipping but there was just no way. A part of the issue is that my stuff is all American made. American metal and fasteners. Foregin material has been cheaper but I set on American made. I was approached by someone who could have all of my stuff made overseas, I could have the disks machined and assembled and fingers cut for less than I am currently paying. And I wouldn't need to assemble anything. But that's not what I want. I still have a pretty strong sense of national pride. I can't guarantee where some of the hardware is made, I do know the source for the aluminum though and the fasteners. 

I also want to address the sending of products to You-tubers. I made some strategic gifts one might say. Never specifically asked anyone to do videos or endorsements. But I will admit that I hoped for some. Ian and Jason are the only two who've done any videos and I am sincerely grateful for their endorsement. I sent out a lot of stuff to a lot of channels. Some said thanks, some said nothing and some said, how much will you pay for me to sell this?
As I said, strategic gifts. 

I've not had any specific complaints, some feedback on possible improvements, but as far as I know my customers have been satisfied and that means a lot to me. 

So if you've purchased I want to say thank you very much.