Re: [CR]Situation Desperate

(Example: Events:Cirque du Cyclisme:2002)

From: "Peter Jon White" <lists@PeterWhiteCycles.com>
To: <brianbaylis@juno.com>
References: <20040225.065312.5165.1186475@webmail03.lax.untd.com>
Subject: Re: [CR]Situation Desperate
Date: Wed, 25 Feb 2004 12:27:35 -0500
cc: classicrendezvous@bikelist.org

If you can't keep up with the demand at $4,000.00, then by definition there is room. The excess demand for your frames is telling you that your price is too low.

Think about it. If Ferrari sold their cars for $10,000.00, they couldn't possibly make enough to fill all of the orders they would get. People who can't afford a Ferrari at $180,000.00 (or whatever they sell for now) would order one if it only cost $10,000.00. I would buy two or three if they only cost $10,000.00! If Ferrari prices their cars at $2,000,000.00, they will undoubtedly lose many customers, and would sell far fewer cars. That would tell them that their price is too high. They would have to lower the price to a point where people started placing orders again.

You're in a unique business. If people want a bike to commute to work on, or tour across country, they are not likely to be interested in one of your frames. So you are in an entirely different business than say Cannondale or Giant. Cannondale and Giant compete with each other for bicycle sales. But someone who considers a Baylis frame is going to get one of your frames, or keep the money in Microsoft stock, or buy a Leica camera, or a Robert Clem watercolor. You don't need to pay any attention to what other frame builders are charging. You're in a different business. When I was actively building, nobody ever thought to himself, "Gee, should I get a Peter Jon White or a Brian Baylis? Hmmm..." It never happened! You and I are/were not in the same business. I can't build a Baylis, any you're not interested in building a Peter Jon White. ;-)

When I priced my frames, I had to consider what other builders like Peter Mooney were charging. It never occurred to me to check your prices.

Peter Jon White
Peter White Cycles
24 Hall Rd.
Hillsborough, NH 03244
603 478 0900 Phone
603 478 0902 Phax
http://www.PeterWhiteCycles.com


----- Original Message -----
From: brianbaylis@juno.com
To: lists@PeterWhiteCycles.com
Cc: classicrendezvous@bikelist.org
Sent: Wednesday, February 25, 2004 9:52 AM
Subject: Re: [CR]Situation Desperate



>
> Peter,
>
> Of course you are correct. Unfortunately, it is not in my nature, and I really don't know why. I suppose it has to do with a certain amount and type of sympathy for customers in general. But my partner Craig will be assigned that duty as the first order of business. Is there really room for me to raise my standard frame price above $4000? Just curious.
>
> I really appreciate you imput.
>
> Brian Baylis
> La Mesa, CA
>
>
>
> -- "Peter Jon White" <lists@PeterWhiteCycles.com> wrote:
> Brian,
>
> Prices are determined by supply and demand. If you have more work than you
> can possibly handle, that, by definition, means that your prices are too
> low. My advice; raise your prices, do less work, make more money, and enjoy
> life. ;-)
>
> Peter Jon White
> Peter White Cycles
> 24 Hall Rd.
> Hillsborough, NH 03244
> 603 478 0900 Phone
> 603 478 0902 Phax
> http://www.PeterWhiteCycles.com
>
>
> ----- Original Message -----
> From: <brianbaylis@juno.com>
>
>
> >
> > Dear listmembers,
> >
> > As much as I enjoy writing to the list(s), this is one writing I was
> hoping to avoid. I awoke a short time ago, at 4:00am, to the realization
> that to write this is now a neccessity.
> >
> > I have reached my human capacity to keep all that is required of me and my
> attention under reasonable control.
> <snip>