| About Pricing, Again! |
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Written during the release of the August 2011 run: You may have noticed a price increase in August 2011. We've held the line on our prices for nearly five years, but unfortunately it's time for change. While we are still in a near depressed economy it has not stopped our suppliers from passing on price increases to us. Case in point: we use three balsa suppliers to get the best wood at the best price. One has passed along three price increases within the past year! The other two had one and two price increases. Two of these suppliers also kit their own models. They buy balsa from Central American distributors, cut it, slit it, sand it and then use it in their kits along with selling it "wholesale" to kit suppliers like Classic RC. Obviously, their cost of wood for their kits and the cost of wood in my kits is quite different. We have to buy or contract our supplier's services for most everything you see in the kit except for the cut blocks, milling, landing gear, and canopies. I perform those tasks here. However, I have to buy the prints of the drawings, hardware, laser cut balsa sheets and ply, boxes, canopy material, landing gear wire, balsa, ply, and wing tubes. Some I am able to buy at wholesale, some at a retail discount, and some at full retail. And, as you know, very little has decreased in price over the past years. So, the prices you observed before Aug 1, 2011 have been in that form for roughly five years. As of the past year I have just broken even on the kits. It is quite unfortunate, but I must increase my prices. In the interim I am exploring contract manufacturing kits with reputable USA based kit manufacturers. Update, December 2011 run: Incredibly, another batch of price increases has occurred since August. Four of the seven suppliers of Simla materials have increased their prices since August. Cases in point, my cost for the canopy is over $5, my cost for the cardboard tube sockets is over $11 each for each kit, and my cost for the drawings are over $12 for each kit. One of the three balsa suppliers passed along another price increase. Unfortunately, I must pass these increases along to survive, make a profit, and continue providing classic pattern planes to the RC community. I am currently in talks with a US manufacturer to take over production of my most popular kits. This will, hopefully, reduce the cost. Jeff Petroski |