[Harp-L] Hohner Price Increases - reality check?

[icemanle@xxxxxxx]

 How many listers are on the "L"? (not just the ones moaning about the price increase, but all members?)

How many people play harmonica in the world?

What percentage of players are pros vs. how many aren't?

What percentage of sales from Hohner are to pros, "L" ers, vs ALL THE REST? 

Is Hohner targeting a most probably huge ALL THE REST instead of the perhaps small % of pros and "L"ers?

Unless the powers that be at Hohner are real players, they are probably suits that hire bean counters to work these numbers and make decisions based on these types of formulas?



 


 

 

-----Original Message-----
From: Bill Kumpe <bkumpe@xxxxxxx>
To: harp-l@xxxxxxxxxx
Sent: Sun, Jan 24, 2010 8:09 am
Subject: [Harp-L] Hohner Price Increases


I think Hohner's new price strategy is insuring a couple of things at
minimum:

(a) In the short term, it will lose market share in the price-quality
conscious marketplace.  I for one start balking at about a thirty dollar
price point for an everyday harp and I expect a good harp for that kind of
money.  I would not pay thirty for a Blues Bender or anything like it.  I
would not pay thirty for a Big River unless someone convinced me that Hohner
had implemented Japanese style continuous improvement manufacturing and even
then I would want to hear the harp before taking it home.  Bottom line, IMHO
they are taking an incredible risk in the mid price market that they new
dominated leaving room for Suzuki and even a high quality Chinese
manufacturer to own that market in a couple of years.

(b) In the long term,they are encouraging US domestic harp development and
production.  We all know about the one US harp that is soon to be released.
We also have a guy here in Route 66 country who has been quietly lining up
precision machine shops and suppliers to manufacture a US made harp.  There
is now prodigious excess precision manufacturing capacity thanks to the
recession and the Obama downturn in Defense spending, particularly on new
aircraft systems.  Price was problem at Hohner's old prices of a year ago,
less so now and the new prices may tip it over the edge into viability.  

Bottom line.  Hohner is opening up a market to competition here in the US
that they virtually owned.

Bill Kumpe
Tulsa, OK

_______________________________________________
Harp-L is sponsored by SPAH, http://www.spah.org
Harp-L@xxxxxxxxxx
http://harp-l.org/mailman/listinfo/harp-l