Klarinet Archive - Posting 000248.txt from 1999/08

From: reedman@-----.com
Subj: [kl] Roger's economic theories
Date: Wed, 11 Aug 1999 19:47:36 -0400

I know from the beginning that it is fruitless to get into any kind of
argument with Roger, however, I would like to point out some flaws in his
logic.

The very idea of comparing acrylic mouthpieces to hard rubber is
specious. First, the object of making an excellent, handfinished acrylic
mouthpiece is to provide a highly useable product at a very affordable
price. To make a price comparison to an artist level mouthpiece and then
call the student mouthpiece "inferior" is absurd. The two products have
different markets and different purposes.

His argument that one has to either pay $29 or $150 is also
ridiculous. There are far more mouthpieces available at the $50 -$100 range
than at the $150+ range. For example, Van Doren mouthpieces are without a
doubt the most popular and common mouthpieces in this country. Depending on
the source you will pay about $55-$100. They have a tolerable (to some)
range of consistency and produce to some ears a perfectly satisfactory
sound. I suspect that a Van Doren mouthpiece requires on average less than
5 minutes of hand work once the mouthpiece is molded and faced (by
machine). I do make a hand finished mouthpiece that competes on a price
level (list for $89) with the Van Doren. It is called the NOVA.

Also, to indicate that someone can make $102,000 on 6000 mouthpieces
is a bit of mathematical chicanery. His asumption is that SOMEONE is making
$17 per mouthpiece. As a maker I don't sell the mouthpieces to stores for
$29. This Roger understands. (By the way Roger's base prices are not
correct either). But a music dealer who is buying 12 mouthpieces at a time
is absolutely entitled to make a full mark up when you consider his/her
cost of doing business. Which in most cases is very high.

Now, let's consider Roger's comment that it would be preferable for
makers to make a $50 mouthpiece from hard rubber:

"What if you successfully market 3000 hard rubber
mouthpieces for $50 each? Profit is then ~ $96,000. " RG

This is absolutely not possible (at least not for anyone that is
concerned about making a living). If a mouthpiece blank costs $17.50, how
can I reface and rework it so that a store can sell it for $50? I would
have to sell it to the store for no more than $25 - a whopping $7.50 gross
profit. If however I do sell it to the store for $50 then the list price
must be in the range of $100. We are no longer talking about Roger's
magical (or should I say mythical) $50 rubber mouthpiece.

Roger has very little experience in the area of retail sales as far
as I can tell. He is not aware that we have what are called A discounts and
B discounts. A B discount is anything less than 50% and I can tell you that
most of us who are listing their mouthpieces around $150 are not offering
those exceptional mouthpieces to dealers at anywhere near 50%. In fact, I
think it is a credit to the stores and distributors that are willing to
provide these high end mouthpieces to their customers when the the return
on investment is relatively low.

There is one point that Roger is avoiding. Stores actually DO make
more money on the mid price rubber mouthpieces than the acrylic
mouthpieces. So why am I seeing such a proliferation of my "inferior"
acrylic mouthpieces. The fundamental truth is that many teachers and band
directors prefer the consistency and playability that my "Debut" mouthpiece
offers to the highly inconsistent, mass made, mass marketed rubber
mouthpieces now available at more than twice the price. The steady yearly
increase in sales of "Debut" mouthpieces I have observed is driven by
consumer desire, not store profits.

PLASTIC WORKS GREAT!!!!!!!!!

Clark W Fobes

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