Re: [CR]Situation Desperate


Example: Component Manufacturers

From: "Peter Jon White" <lists@PeterWhiteCycles.com>
To: "Derek Willburn" <morganx9@yahoo.com>, "VintageBikes" <classicrendezvous@bikelist.org>
References: <20040226031040.53570.qmail@web40906.mail.yahoo.com>
Subject: Re: [CR]Situation Desperate
Date: Thu, 26 Feb 2004 04:02:13 -0500


He probably would. But if the situation is truly "desperate", something has to give.

When demand for your services is greater than your ability to supply, you end up rationing by some means. You can hold a lottery to see who's order gets worked on, you can work on the frame for whichever customer has gotten angriest with you for not finishing the job in a reasonable time (grease the squeeky wheel), or raise prices and see which customers still value their cash less than your services at the new price. Regardless, someone is not going to continue being a customer, even if Brian dropped his prices to zero.

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: "Derek Willburn"
To: "VintageBikes"
Sent: Wednesday, February 25, 2004 10:10 PM
Subject: Re: [CR]Situation Desperate



> I think what Brian might be saying is that if he
> raises his prices too high, then he might possibly
> lose some CR clientel which are the people he/we like
> to hang with :)
>
> Derek Willburn
> Long Beach, CA
>
> --- Peter Jon White <lists@PeterWhiteCycles.com>
> wrote:
> > 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.
> > Peter Jon White
> > Hillsborough, NH
>
> > ----- Original Message -----
> > From: <brianbaylis@juno.com>
>
> > > 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. > >
> > >
> > > Brian Baylis
> > > La Mesa, CA