Something told me to look at this thread, since we are the company offering the containers on sale I would love to jump in here!
We too think the cost of dry goods on some occasions can be high too, especially in the case of the containers among others; however, every other dealer in the country is obligated to sell them for $75 for the 5L and $60 for the 2.5L. I would think we are doing our best here to make things hurt a little less......
I run the containers at home and they are actually really handy and work better than a plastic container with a loose airline sitting in the bottom. Are they worth $75 and $60 respectfully? No. But would I still buy them at regular price if I were a regular hobbiest? Yes. The reason being because they are exactly what I was looking for.
Some things to remember when questioning the cost of goods in our industry when gross margin and profits are concerned;
- Niche Market lower production volumes
- Cost of production
- Cost of Marketing
- Cost of R&D
- Distributors of the items have to stay in business with "acceptable" margins.
- Cost of shipping in minimum quantities
- Cost of Duty and custom brokerage
- Cost of utilities
- Cost to run systems (Salt, Water, Food, misc supplies)
- Paying employees
- Paying for insurance
- Covering costs of business systems including 2-3% for credit card processing and Paypal
- Paying for websites and hosting
- Absorbing livestock losses
- Absorbing returns and defective goods
- Advertising
- The list goes on and on.....
Quote:
Originally Posted by Slick Fork
Or are prices really kind of crazy???
Now don't get me wrong, Although I mostly lurk it's not my first day and I'm guilty of shelling out some pretty big bucks for various items.
I guess what's prompting this is a thread I keep seeing bumped up a "SALE" on a certain companies two part containers. Now, in the interest of keeping this civilised it's not a bash on the retailer as I've never had any dealings with them... this is just what prompted me to comment on prices in general
I mean really, they are offering on SALE a pop bottle sized container capable of holding liquid for the bargain price of $40 and I'm supposed to be excited? I could understand $15 or $20 as a retail price cause after all, you do get the straw that reaches to the bottom...
Same goes for some of the skimmers out there. I can understand the portion of price that goes to the pump but lets face it, the rest of it is simply a plastic jug with a specific shape. I get that some research and development goes into these things but when you prices going into the THOUSANDS of dollars and huge add ons for ridiculous stuff. You want a bubble plate... you know a thin plastic disc with holes drilled in it... that'll be an extra $100 (if you're lucky). I've heard the old argument that the materials are expensive and they use nothing but the best acrylic but come on, it's gotta hold water and mix it with air. I don't need it to withstand atmospheric re-entry or earn a 5 star crash test safety rating. Advanced engineering... half this stuff is mass produced in China and once the physics were figured out all these companies do is make minor adjustments in shape to see if they can tweak it a little.
I know, companies charge what the market will bear... maybe that's the problem. When someone see's a 2.5 litre jug for $40 and says "Hey, that's a good deal" instead of going to Canadian Tire or Wal-Mart and paying $5 for a juice jug they really are making it worse for all of us.
I'm sure I could think of lots more examples but I've probably ranted enough for now! Again, not a bash against any specific vendors... just the dry-goods industry in general!
Cheers
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