[Harp-L] When will Suzuki raise prices / start bubble

["Bill Kumpe" <bkumpe@xxxxxxx>]

Some of the manufacturers, the shortsighted ones, will follow Hohner's lead
and try to bleed the market by pricing just enough below Hohner to remain
competitive but high enough to substantially increase their margins.  The
ones in the game for long haul will trade short term profits for market
share and eat Hohner's lunch in the US mid-price market range.  This is the
wrong time for a price increase in the American market.  At least 17% real
unemployment, another 20% underemployed, foreclosures at an all time high.
People are counting pennies, not just dollars.

>From what I remember about competing with the Asians in the electronics
market in a different life, they may view this Hohner price increase as a
golden opportunity.  The Japanese kicked our (the US) tails in consumer and
light business electronics in a very short time by being willing to moderate
profits to establish market share and then market dominance.  They dumped
into the US, sometimes at below cost, and have now dominated the market for
decades.  Suzuki could do it with their HarpMaster line which we know they
have sold for as low as $15 US and can probably still make a great margin at
$25 US.  The dark horse is Hering.  They could really shine in this market
opportunity with a reasonable quality $20 harp and a good quality $30 harp.
One of the Korean or Indonesian guitar manufacturers who turn out great mid
price guitars by the truckload could decide to make a harp.  That would set
the entire market on its ear and drive prices and quality both in the right
direction.  A ten to fifteen dollar Asian clone of a Marine Band or SP20
that plays way above its price (like some of their mid price guitars) would
sell here in the US .... and steal a bunch of market share. They could do it
and make money if they decided to.  

Bill Kumpe
Tulsa, OK