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Re: Reasonable Prices and my position on it.



John Fleck wrote:
        >Jim does built some great bumpers but i believe his prices are too
high
for the average enthusiast.  . . . . . . . . . .
. . . . . . . .         My company believes in bringing customers quality
products at reasonable
prices to further the interest of the hobbie. That is not to say that we
(the vendors and merchants) should not profit. If that were the case we
could not stay in business. I am fully in support of small business
manufacturing and retailing new and inventive products for the industry.
However there needs to be some point of "Fair and Reasonable" as far as a
markup for profit.       .. . . . . . . . . 

John Fleck
Back Country Binders<

   John,

  First,  I have no experience, whatsoever, with either Metalward or your
company, BCB.  But I have been in business for a while longer than you, so
I'd like to make a few observations based on my experience. 

  As a founder of a relatively new startup company, I admire your
enthusiasm.    In making  comparisons between  "Fair and Reasonable as far
as a markup for profit" of  your products and those of another company, you
may be comparing apples to oranges though.  I'm willing to bet you haven't
even begun to incur the type of expenses that most small businesses face.  
For instance, do you pay a monthly charge for a dedicated "business" phone
line?   Do you operate your business from a location "zoned" for
manufacturing?  Do you carry all the commonly accepted forms of liability
insurance on your products?  Are you paying all the appropriate federal,
state, and local taxes on your enterprises?  Are you licensed as an auto
dealer in the state of Washington (did you know anyone who has more than 4
vehicle transactions a year must be so licensed)?  How about advertising
expenses?  Etc, etc, etc, etc.  In other words, to insinuate an established
company has too high a markup for profit as opposed to your fledgling
company doesn't seem to be a fair comparison.

  On the other hand, I think a comparison of product quality would be a
fair.

Doug



  



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