Fesler Billet hood Hinge options (PLEASE HELP)

[fesler]

Hello All,

This is Chris Fesler from Fesler Billet and I need some help with our Billet Hood Hinges. What I really need is everyone’s input on what we should do regarding a price increase. As many of you know we are in the works for several new applications and plan to continue making more applications and parts for the hot rod and muscle car industry.

Right now we offer our billet hood hinges standard with polished stainless steel struts as well as top of the line bearings that are far superior to any other product on the market. They come with a good warranty and we can offer them in black anodized or polished.

My question to all is with all the new applications, we are going to have to do a small increase in the price of the hinges since metal costs have gone through the roof. Because of this our profit margin has continued to shrink. Obviously we can’t make them if we can’t make money doing it. I know some of you think they are already over priced and I can understand your point of view but on the other hand they are a huge pain in the butt to design and manufacture. If they were easy everyone would make them right?

Ok, the question is: Should we do a standard price increase (10% - 15% per set) and still continue to offer the hinges standard with stainless steel struts or do we do a mild increase (3% - 5% per set) and offer the hinges standard with a black steel strut (not cheesy plastic). Of course the option to buy a set of the stainless steel struts would be available but they would cost the end user $165.

Please give us your thoughts and we can go from there on the new applications and get more applications out there for you guys. FYI – Price increase won’t be until April 1 so you will have time to still buy at the existing price.

[7TSS]

My opinion is to offer it w/ the black strut and a slight increase. Let the buyer ante up if they rather pay more for the stainless. Gives them more choices and keeps prices down somewhat.

[Mover]

I would have to agree with 7TSS statement. The one thing I would do is shoot myself in the foot with a 10-15% increase. What I would do is offer the hinge with the black strut and use the SS strut as a product upgrade. Give the potential customer the choice on the setup of your product.

I’m not really new to the page I just haven’t posted much so not sure if my opinion counts but will say it anyway.

[buickfunnycar.com]

I agree with both posters...offer black as the standard and polished as the upgrade.Keeps prices down and lets the client decide what's right for their application.Compare sales of each after 6 months and there's your answer...

[camcojb]

Make a set for a 64 Chevelle, and I'll give my opinion.......... Just kidding Chris. I would do exactly as everyone above said; keep the increase as small as possible, and then offer upgrades at additional cost. The entry level pricing is critical to not turn people away. Price increases are inevitable, but I always try to keep mine as small as possible, being fair to myself and my customers.

Jody

[Steve1968LS2]

Originally Posted by 7TSS

My opinion is to offer it w/ the black strut and a slight increase. Let the buyer ante up if they rather pay more for the stainless. Gives them more choices and keeps prices down somewhat.

I would vote this since I could care less about stainless struts. As a business you want your "base" price as low as possible to stay competative.

Just my .02

[TEDDYS CAMARO]

I AGREE WITH STEVE. I PERSONALLY WOULD WANT THE STAINLESS STRUTS, SO THEY WOULD MATCH EVERYTHING ELSE THAT IS SHINEY IN MY ENGINE BAY.

[johnny rockett]

Originally Posted by fesler

Hello All,

This is Chris Fesler from Fesler Billet and I need some help with our Billet Hood Hinges. What I really need is everyone’s input on what we should do regarding a price increase. As many of you know we are in the works for several new applications and plan to continue making more applications and parts for the hot rod and muscle car industry.

Right now we offer our billet hood hinges standard with polished stainless steel struts as well as top of the line bearings that are far superior to any other product on the market. They come with a good warranty and we can offer them in black anodized or polished.

My question to all is with all the new applications, we are going to have to do a small increase in the price of the hinges since metal costs have gone through the roof. Because of this our profit margin has continued to shrink. Obviously we can’t make them if we can’t make money doing it. I know some of you think they are already over priced and I can understand your point of view but on the other hand they are a huge pain in the butt to design and manufacture. If they were easy everyone would make them right?

Ok, the question is: Should we do a standard price increase (10% - 15% per set) and still continue to offer the hinges standard with stainless steel struts or do we do a mild increase (3% - 5% per set) and offer the hinges standard with a black steel strut (not cheesy plastic). Of course the option to buy a set of the stainless steel struts would be available but they would cost the end user $165.

Please give us your thoughts and we can go from there on the new applications and get more applications out there for you guys. FYI – Price increase won’t be until April 1 so you will have time to still buy at the existing price.

I am going to buy a set of your hinges for my Camaro and one of the reasons is I think they are better than the other guys plus your price was better. So price in this economy is king....All consumers are cutting back because of the media frenzy about the economy....do you want to sell more or less....I think the sales will be better volume wise if you keep your price where its at at least for this recession!

[comp-spec]

base price cheap as possible and go up from there