Re: [Harp-L] harp price



Yes you are correct, metals are very cheap. But you are not accounting for tooling costs and labor. that has to be accounted for. I will share some estimated costs for you if let's say Hetrick was to build their own line of harmonicas. I actually looked into this once. Please don't take any offense to this or get angry. I think this is a great discussion and I also think it is important for people to understand what it takes to manufacture things.

Here is my example: Doing it very simply: Doing one model of harmonica meaning one set of coverplates, one reed/reedplate design, one comb and no low harps.

1) Cost of research and development $25,000-$50,000 (to make sure it doesnt suck and holds up over time, this was very low estimate)

2) Cost of a punch press machine to make reedplates and reeds and covers $10,000 (this is a very cheap one)

3) Cost of cutting dies to make blank reedplates $5,000 - $10,000 (this is assuming I make only one set which means only long slot and no F# can be offered)

4) Cost of cutting dies for coverplates $5,000-$10,000

5) Cost of reeds being machined or stamped (I did not get this far when i did research). Let's say $20,000. This is just to make the machine molds to make them mind you. This is the most difficult thing to make.

6) Cost of a crappy injection molded plastic comb. I am guessing here, probably 5 to 10 thousand to make the first batch and the mold, then cheaper after that.

7) Unless I am lucky enough to find all out of the box screws and don't need to pay to have custom ones made...Add another $1-$2 thousand dollars for decent coverplate screws that are male/female (I recently had some made).

8) Cost of chroming or coating coverplates I have no idea....but that has to be added in

9) Cost of marketing and distribution no idea there but also needs to be accounted for

10) Cost of making a box and packaging. Im not sure, but I know Dave Payne at HH said they had to settle on little leather bags that were 8 bucks a piece unless they outsourced to china. Lets say $5K if we are cheap.

11) Don't forget that I can't sell it for 30 bucks. It is more like 20%-40% less because I have to give a cut to distributors to get it in your hands.

What do you think? There are many other costs, these are just a few. My total tooling up cost (minus anything above I did not give an estimate for) could easily be $100,000. This is just to get started making them and in low production numbers, maybe a few hundred a month. I did not add in the cost of metals, materials, other tools for tuning, riveting and of course the labor charges to pay employees to get things made.


On 9/12/2012 6:05 PM, Vern wrote:
A 270 Chromaitc weighs 6.2 oz. Assume that it is made entirely of copper (the most expensive component of brass). The current price of copper is $3.70 per pound. That means that the value of the raw materials in a chromatic harmonica cannot be as much as $1.43.

A diatonioc harmonica weighs about 2.3 oz. Using the same assumptions, the value of its raw materials is less than $0.53.

Thus, the value of raw materials is about 1% of the sale price. For this reason, I can't see changes in the cost of raw materials driving harmonica price changes.

The increase in harmonica prices must be the sum of labor + overhead + profit. It may be that prices were lagging inflation and there has been some "catching up". I think that there is enough competition to keep profits reasonable. You can help by buying on quality, service and price while ignoring myths and prejudices.

Whenever you see a product (XB40, CBH2016) or a company (Blockbuster) die , you can bet that it is because of low sales. Also remember that there are not enough Harp-l and Slidemeister members to keep very many harmonica manufacturers in business. Those of us who play seriously, repair and customize our harps are going to be affected by a larger, more casual market.

Vern

On Sep 12, 2012, at 2:05 PM, Peter Madcat Ruth wrote:

The price of harmonicas world-wide has gone up because the price of brass has gone up.
Also, building and tuning a harmonica is very labor intensive.


Peter Madcat Ruth Musician - Grammy Award Winner madcat@xxxxxxxxxxxxxxx www.madcatmusic.net www.youtube.com/user/petermadcatruth










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