UKs prices to increase Oct 1st

[Monkey@Arms]

Just got word that the price of all UKs are going up on October 1st by 5%. I believe that they will be taking phone orders on all makes and models this weekend, so if you were thinking of getting one in the near future, now is the time to buy.

Best regards,

Jake

[pbpersson]

Now......I thought that as non-traditional kilts became more popular, the prices would start to come down. Also, it appears more kiltmakers are appearing all the time.

Isn't UK going in the wrong direction with this?

[Makeitstop]

Now......I thought that as non-traditional kilts became more popular, the prices would start to come down. Also, it appears more kiltmakers are appearing all the time.

Isn't UK going in the wrong direction with this?

Not at all.

The reason prices drop as something becomes more popular is because with a larger market, a company can increase production and in doing so increase efficiency. More efficient production lowers costs which allows for the dropping of prices. The prices don't actually drop however until competition forces it, or potential sales of lower priced items outweighs the profit made at the higher price.

Right now, UKs can't be produced fast enough to meet the demand, and they are trying to increase production. Since increasing production costs money, it makes sense to raise the prices to cover that cost.

In the long term, the price should go down, as long they reach a point where they can produce enough kilts to meet the demand, and make money on a cheaper product.


It's the same thing that's happening with the Wii. Both the competitors have dropped their prices, and it is getting to be well past the normal time frame for a price drop on a video game console, but they are selling faster than they can be built, so lowering the price would only hurt nintendo economically without increasing sales. Once production surpasses demand, then it will make sense to drop prices, but not before.

[pbpersson]

Not at all.

The prices don't actually drop however until competition forces it, or potential sales of lower priced items outweighs the profit made at the higher price.
.

That makes perfect sense. What was I thinking? Companies are in business to make money, like more profit, and will charge what they can for their products. Most likely AlphaKilts are cheaper because they are just starting out and need to jump start sales and get the word out about their kilts. When they cannot keep up with demand, their prices will go up as well.

Supply and demand.....I learned about that long ago......

Now you can see why I am a techie and not a business owner

[Makeitstop]

That makes perfect sense. What was I thinking? Companies are in business to make money, like more profit, and will charge what they can for their products. Most likely AlphaKilts are cheaper because they are just starting out and need to jump start sales and get the word out about their kilts. When they cannot keep up with demand, their prices will go up as well.

Supply and demand.....I learned about that long ago......

Now you can see why I am a techie and not a business owner

Well, supply and demand is often a bit of an oversimplification, but in general yes, that's the gist of it.

I don't know enough about alphakilts to say if they only dropped prices to stir interest, as there may have been other factors. For example they may have been charging more earlier due to basic start up costs, and now can afford a lower price. But I can say it definitely has increased demand, as I am now seriously considering getting one very soon.