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  #1  
Old 01-05-2011, 03:00 PM
Sheryl@Semroc Sheryl@Semroc is offline
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Join Date: Mar 2005
Location: Knightdale, North Carolina
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Default Pending Restocks

We do not increase our prices all at one time. We increase prices on a per item basis when we restock or rekit product. If we do not have to restock a kit for many months, creeping prices on raw materials make it necessary to raise the price when we do rekit. We do not raise prices on kits that are already in the bag at the old prices.

Tubes increase about 5% per year and balsa planks just went up again. China is buying up most of the 6-8 lb per cubic foot balsa and are willing to pay a premium of up to 250% to get it. With the devalued dollar against the yuan, their money goes farther. We have been notified to expect another 50% increase in balsa prices over the next few months. We have recently been assessed a 25% adder to get selected balsa and the lengths are 36" instead of 48", which generates more waste.

This will affect the industry and will impact the larger kits more than the smaller ones. Here is a list of the upcoming kits that we are restocking now at current raw material prices and the current projected price:


Swift-BG $14.50 -> $16.00
Magnum Hornet $16.50 -> $17.50
SLS Brighton $75.00 -> $87.00
SLS Laser-X $53.50 -> $55.00
Geehod $22.00 -> $24.00
Hydra VII $45.00 -> $49.50
Saturn 1B 1/70 $70.00 -> $76.00
SLS Aero-Dart $47.00 -> $50.00

As each one runs out over the next few weeks, we will increase the price on the new kits. If balsa, tubes, matboard, or any other primary raw material goes up between now and then, the prices could be higher.

We do not announce price increases to the general public since it is an ongoing thing, but we will try to make sure the SAM's get some advance warning.

Last edited by Carl@Semroc : 02-24-2011 at 09:59 AM.
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  #2  
Old 01-06-2011, 09:40 AM
jetlag jetlag is offline
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Thanks for the update, Sheryl! At least we'll be prepared!
Allen
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  #3  
Old 01-06-2011, 12:35 PM
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ghrocketman ghrocketman is offline
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Sheryl- the entire team over at Semroc rocks- most companies do not even attempt to justify their pricing to their customers.
Then again, as "hobbyist" oriented as your company is, I'm not surprised.
Thanx for the heads up.
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Old 01-06-2011, 10:43 PM
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Mark II Mark II is offline
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Thank you. Considering what they contain and what went into developing them, your kits are still quite a bargain in my view.
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  #5  
Old 01-23-2011, 07:38 PM
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jharding58 jharding58 is offline
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No matter the price, when you have something that is pretty well a sole source, keeping a price point as reasonable as yours is nothing short of remarkable?
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Old 01-23-2011, 07:57 PM
BoosterDude BoosterDude is offline
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Any chance of offering the Brighton with just the 29mm motor mount to get the cost down? It seems like thats what the majority builds them with. You could offer the other mounts as options.
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  #7  
Old 01-23-2011, 10:16 PM
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Carl@Semroc Carl@Semroc is offline
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Quote:
Originally Posted by BoosterDude
Any chance of offering the Brighton with just the 29mm motor mount to get the cost down? It seems like thats what the majority builds them with. You could offer the other mounts as options.

That is a possibility.
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Old 02-07-2011, 10:23 PM
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Carl@Semroc Carl@Semroc is offline
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Well the last order for plank balsa went up 35% in cost! I started calculating the new prices for nose cones and the large ones made me sick so I stopped for now. It is inevitable. I just do not want to think about it right now.

The bright side is it is ONLY 35% and not the expected 50%.
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  #9  
Old 02-08-2011, 09:06 AM
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ghrocketman ghrocketman is offline
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35% is a whole lot better than 50% !
What is driving this shortage in Balsa ?
I have heard from several sources it is due to Automotive applications and Wind Turbine blade cores.
Not sure if I buy either of those....
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  #10  
Old 02-08-2011, 09:37 AM
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tbzep tbzep is offline
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Quote:
Originally Posted by ghrocketman
35% is a whole lot better than 50% !
What is driving this shortage in Balsa ?

The Chinese.
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