Leeway prices

LeewayComposite · 25 July 2006, 11:31

I am after some "SENSIBLE ADVISE" as regards to what people think of my prices on the leeway ribs.

vince · 25 July 2006, 11:59

I think ours was a bargain! But i would honestly say that to compete with other boat builders in the same markets, a good business plan needs to be down in writing, with goals as to where you want to be in 2 yrs, 5 yrs, 10 etc
A lot of research in the way of prices for comparable products needs to be carried out, as with any business, its ok trying to sell the products of your labour cheaply, but i sense your thinking they`re perhaps a little TOO cheap?
With quality, you`re onto a winner already, i cant find fault at all. But being too cheap could even put people off from buying.
Have a word with banks business manager, they can help with a business plan, (if not already done one)
If the product is good, the price should really reflect it. Before we commisioned ours, we honestly thought, why so cheap? There must be something wrong with it! But there isnt....at all.
I think its time to get serious about the business side of things(IMHO) youve cracked everything else!

LeewayComposite · 25 July 2006, 12:11

Vince,

Thankyou for the advise.

I have just lost a customer because he thought the same as you its too cheap so must be something wrong with it. unlike you he didnt come for a demo run. every demo run we have done has sold a rib apart from one.

I feel we need to increase prices again soon. The trouble is trying to find the ballance.

Lostboy · 25 July 2006, 12:22

Quote:

Originally Posted by LeewayComposite

Vince,

Thankyou for the advise.

I have just lost a customer because he thought the same as you its too cheap so must be something wrong with it. unlike you he didnt come for a demo run. every demo run we have done has sold a rib apart from one.

I feel we need to increase prices again soon. The trouble is trying to find the ballance.

I was happy with the price for number one! You may well have seen it a LOT in Cowes so far this year as I've been over for a huge number of sailing events.

It is a tricky balance and one that I experienced recently when I sold a car. I advertised it amongst enthusiasts for a price that was certain to grab their attention and it sat there for a few weeks. I then posted again and said "why does no-one want it" and got told that everyone assumed there was a problem with it. I upped the price by 50% and got it, in cash, immediately!! Quite bizarre.

You know that you are now treading the fine line between "new-boy" and being able to up the price to something more in line with market but as long as you can rely on people like me, Doug, Vince and the others to recommend you then you can probably start creeping them upwards. Get the customer concerned to PM me (or ring me) and I'll talk to them.

LeewayComposite · 25 July 2006, 12:38

Quote:

Originally Posted by Lostboy

I was happy with the price for number one! You may well have seen it a LOT in Cowes so far this year as I've been over for a huge number of sailing events.

It is a tricky balance and one that I experienced recently when I sold a car. I advertised it amongst enthusiasts for a price that was certain to grab their attention and it sat there for a few weeks. I then posted again and said "why does no-one want it" and got told that everyone assumed there was a problem with it. I upped the price by 50% and got it, in cash, immediately!! Quite bizarre.

You know that you are now treading the fine line between "new-boy" and being able to up the price to something more in line with market but as long as you can rely on people like me, Doug, Vince and the others to recommend you then you can probably start creeping them upwards. Get the customer concerned to PM me (or ring me) and I'll talk to them.

is this mark??

It must be..

good to here from you. i have seen the number one out and still think she looks fantastic. we are on number 15 now and still taking orders.

I tried conntacting you a few time but had no luck.

Lostboy · 25 July 2006, 12:55

Quote:

Originally Posted by LeewayComposite

is this mark??

It must be..

good to here from you. i have seen the number one out and still think she looks fantastic. we are on number 15 now and still taking orders.

I tried conntacting you a few time but had no luck.

It is.

Strange, I haven't had anything from you but just assumed that you were too busy!!! The boat has been in the water for a while now so has navy blue Blakes Hard Racing Antifouling (burnished) and it makes no difference whatsoever to the performance and looks EVEN BETTER!!!! It's done well over 150 hours this year (engine will soon need ANOTHER service) but has been superb. I am in love with the engine, so torquey and running only 10l/hour!! I met up with the no.2 boat guys at the start of the Volvo Ocean Race and we were comparing notes and they get the same out of their Optimax.

PM with the numbers and emails that you have for me and if they are wrong/changed then I'll update you.

vince · 25 July 2006, 13:07

How much do you re-invest into the company? Once wages, materials, rent etc has been paid, is there enough left? Without re-investment, it will allways stay at the same level of turnover/profit. Set a realistic level of money to plough back into the company each month, and then dont touch it untill its needed. Once youve set that level for each month, working out how much prices need to go up is easier. Then one day you shall have that nice factory with its own waterfront and testing facilities! etc etc

richkid · 25 July 2006, 13:10

I PASSED MY ADVANCED COMMERCIAL ENDORSEMENT ON A LEEWAY WITH EXPERT KNOWLEDGE AND TUITION FROM DOUG AT STORM FORCE COACHING . I came over to the island to pick her up with doug , when we got her in the drink she was up and off , handles spot on brill fun i think you have a spot on RIB if i had the money i would BUY ONE good luck ! and keep up the good work !!!!

RIVA · 25 July 2006, 13:35

are you actual makeing money ??

is the question hope the advice helps

j

LeewayComposite · 25 July 2006, 13:44

Quote:

Originally Posted by RIVA

are you actual makeing money ??

is the question hope the advice helps

j

good question..

yes. but not much.

ian parkes · 25 July 2006, 19:24

I have been talking about the same things today with a mate . I have no shortage of customers as there is enough of my product out there now to get word of mouth business.
Iam a lot cheaper than the opposition for what I do and I emphasise to customers that is because my overheads are very low and I don't have a showroom etc .

From some customers , who are the ones with bigger properties and more money to spend I do find it hard to make them to believe in what they are getting for the price , untill they see another customers finished product then its always sold .

What I have identified is that many of the customers who are coming to me are the ones who would otherwise buy a mass produced product because thats their budget .
I won't compromise on quality so iam now aiming away from the mass produced market price comparison . Iam getting more respect better income and more satisfaction , plus the customers following on are the sort I want .

My way of looking at it is nobody would go to a BMW garage and expect to pay Ford prices but if you compare they don't see the quality just the price .

Poly · 25 July 2006, 19:41

You've picked yourself up a bad reputation on here (IMHO) because of all the splashing crap that flies about, and perhaps because you don't seem to have a marketing department to present a professional spin on things. Surely people looking for a boat like this are very likely to google search leeway

If I was in the market for a rib of your size/type etc then you would be on my list of trials because of the price. If you put it up too much then you will just be one of a long list unless you can convince people you have something special to offer.

If the boat does take its designs from someone else (I'm really not wanting to stir all that up again) whether a direct copy or very closely related then perhaps the solution is to do a deal which your "nemesis" seems to suggest would only be a few £100 per boat. I suspect the issues with its origins put more people off than concerns it is "too cheap".

If your conversion rate from demos is very high then you are doing well.

How sure are you that the guy didn't buy because you were too cheap and not for some other reason (including the possibility that he was a time waster who didn't have the funds to finalise the sale anyway)? The objections raised / reason given for not completing a sale is often not the true reason.

Pricing models need to reflect the value of the product not just the cost of production. If you are trying to build a "brand" reputation for quality it rarely goes hand in hand with low cost. If however you are trying to build a reputation for good well built boats at affordable prices then you need to make sure your prices don't creep up.

I think you are generally quite open about the prices of your boats - and I'm not sure your competition all take this approach. Perhaps there is a reason for this?

One thing that isn't clear on most builders (I can't remember if yours is or not) sites is that the price is for a basic hull, and A-frame, console, engine, rigging etc are extras. Its a bit like buying a car - where the on-the-road price is much higher than the "from..." price in the adverts. Perhaps you need to advertise some "package" prices which actually make your boats seem a bit more expensive?

Windchill · 25 July 2006, 22:07

And I'd like a package price for the 630 with a 150 etc please - before you get too expensive for us poor Welshmen!!

Ring or pm.

Nos4r2 · 25 July 2006, 23:55

IMHO Lee,

If Bembridge outboards can sell your consoles for nearly twice what you do then why don't you put the prices up-he wouldn't be selling them at that price if he didn't think that's what they're worth.
It's quite funny that he was even using the same photo on his ad on B&O for a while as you were-that's why I came direct to you for mine.

I think that probably applies across the board.

Doug Stormforce · 26 July 2006, 17:52

Lee

I think you should raise the price up loads, so you can afford to do me an even cheaper deal on the next boat this winter.

Dan Wash · 26 July 2006, 18:29

I think your reputation needs repairing before you go stickinh up prices - same thing happened to my brother - he took over a resurant in Spain - turns out the people beofre him were crap - crap food , crap service etc - took him 2 yrs to repair the damage and get a good rep for food and service. in hindsight he should have changed the name on the restaurant. People who are happy with your products will keep spreading the word.

Lostboy · 27 July 2006, 07:27

The difference in this case being that there hasn't been any crap service or crap pricing or anything other than a allegation of some issues over the development of the design (of which the quality is not in doubt).

LeewayComposite · 27 July 2006, 11:40

Thankyou all for the possitive coments.

Nauti Buoy · 27 July 2006, 12:01

[QUOTE=Dan WashPeople who are happy with your products will keep spreading the word. [/QUOTE]

Could not agree more, we have a Print Business, we don't have a salesman, don't market the business, all our new customers come from word & mouth. recommendation and we are swamped with work...... thank fully

LeewayComposite · 27 July 2006, 14:22

Quote:

Originally Posted by Lostboy

The difference in this case being that there hasn't been any crap service or crap pricing or anything other than a allegation of some issues over the development of the design (of which the quality is not in doubt).

agree..

We have 100% customer satisfaction with all our products.

The issue with the under side of our ribs being close to another hard top boat wouldnt put me off and does not seem to put anyone else off. 98% of ribs are copied in one way or another (but lets not go into that again)