It is nearing the end of our first year of operation and we are reviewing how the price structure has been performing. There is a price rise planned shortly
We are planning a price rise for the GIS and Oz sails in the range of $50 to $70 dollars in the next two weeks or so. The canoe sail will have only a small price adjustment.
Orders after the 15th December from any of our agents
Most of this amount (roughly $50) is because the rate of sales doesn’t match our financial projections before starting the business last year. A much smaller amount of the increase because of materials costs and import costs being higher than expected. We also had to purchase a new industrial sewing machine and servo motor.
Our prices have a low margin.. In the Philippines we don’t need the type of profit that one would expect in say, Australia or the USA, it goes a lot further.
Is it permanent?
We are hoping that the continued growth of sales and by adding one or two more sail types to our inventory that we will be able to bring the price back down again.
Our aim is to get the prices down again and we have three strategies.
1/ Continue the steady growth in sales by documenting when the sails are successfully fitted to other boats – eg the CLC North Easter Dory.
2/ Add more sail types to our existing lines and make some small changes to existing lines that might make them more attractive to owners of other boats. One example is that we have started to make the Goat Island Skiff sail out of 170gsm cloth (up from 140) to make it more attractive for larger boats. The two cloths are both well within the normal range for boats of that size.
3/ Continue our application for registration as an exporter in the Philippines, to dramatically cut our import costs later.
We wish we didn’t have to do it and we hope the expected growth will allow the prices to be adjusted down again.