Klarinet Archive - Posting 000258.txt from 1999/08

From: Roger Garrett <rgarrett@-----.edu>
Subj: Re: [kl] Roger's economic theories
Date: Wed, 11 Aug 1999 22:22:59 -0400

On Wed, 11 Aug 1999, Mark Weinstein wrote:
> Lets not focus on the price point of $50 retail, rather than the REAL
> issue.

Yes, let's not. That wasn't the point of my discussion, although Clark
seems to feel it was. The point of my discussion was response to two
issues: plastic or rubber, and Clark's post(s) that have contained very
little information other than how plastic blanks are made. I'm happy to
learn that my math is wrong (although anyone who reads my post will see
that I never said the mouthpiece maker is making the money - in fact, I
state the contrary later - although Clark must have missed that part) -
but it isn't. My base prices are not that far off either - sorry - they
aren't!

> The retail price doesn't need to be $50, its needs to be an amount
> that can satisfy a financial deal between manufacturer ----------> "middle
> man"/retailee ---------> clarinetist/consumer.

Right! That's also what I meant when I said that people like Clark Fobes
and James Pyne can charge the $ and have every right to earn those $ - the
mouthpieces are excellent and worth the money. But Clark missed that part
too........

> (nobody seems to argue the point that a rubber
> mouthpiece is always preferable to a plastic mouthpiece, both refaced
> properly --- to the same specs)

Which is what I posted initially and Clark responded to in an evasive and
uncomfortable way. That was the intent of his post and that is what his
later posts have revealed.

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

While Clark read that to mean for the mouthpiece maker and then dipped
into some scientific mumbo jumbo about the retailer, A and B markets,
etc., the bottom line is that if he sells his $50 mouthpiece to the
dealer, the dealer sells it for $80 (discount store that is - retail
stores higher), and, if the mouthpiece blank was $17.95 (check out Jim
Green's prices - call him up and ask him - if you don't believe me!) Clark
still makes his $32.05 per mouthpiece. 3000 X $32.05 is $96,150.00. If we
want to get into a long, boring discussion about Clark's overhead (tools,
taxes, shipping, blah blah blah) he better be prepared to use actual
numbers and real information than simply saying the numbers are wrong,
magical formulas....etc.etc.etc. Give us information - not argument. I
would be curious how much of that stuff you deduct from your taxes - and
you actually show a lesser profit - thereby lowering your tax bracket and
gaining more profit? Too little information means nothing.

> ==================================================
> VOLUME is KING ---- it seems to be difficult to refute the demands/results
> of MASS MERCHANDISING. Plastic appears to be the SOLUTION that pays the
> rent for the retailer.

My point exactly. What does that have to do with choices for the band
director? Back to my posting in which I stated that I don't recommend
plastics for my beginning students. That seems to be what caused Clark's
blood pressure to go up and for him to feel the need to get nasty! Let's
be honest - plastics are affordable for the consumer and Clark makes a
good profit and gets his name out there for people to see. What's wrong
with that? Absolutely nothing. What's my beef? I don't recommend
plastics generally.......that's it. Nadda, nothing more.....fine'

> SO, unless the consumer DEMANDS another solution,
> Plastic mouthpieces (in mass quantities) are KING. If anything, this sounds
> like a retail conspiracy --- the artist is forced to deliver what the middle
> man wants. And, since that is a cheaper mouthpiece any Consumer Advocate is
> going to be hard-pressed to find fault with the seller or detriment to the
> consumer. Roger's point is well taken. The relative markups makes
> absolutely no business sense --- the retailer demands his "daily bread" ....
> a "keystone markup" ---- "100% markup on cost" ----- "50% markup on
> retail". <all 3 are the same> The situation is clearly an anomaly. I am
> trying to find a corollary to other retail products which would "share" this
> situation or replicate this dilemma. Can't quite get there right now.
> Markup is usually with a given range in vertical products, at least that has
> been my experience in business. That is, manufacturing markups & middle
> man/retail markups don't have a significant variance within most industries.

There are actually many - but I leave that for others. Maybe Mr. Fobes
can reach in his Clintonise way of explaining things and tell the rest of
us? LOLROF

The Debut is a fine mouthpiece. It is plastic. For those who want the
lower cost of plastic and don't mind the edgier qualities it brings to the
horn, this is probably the best on the market. Although, I like
Ridenour's plastic mouthpiece also - I tried one at IMS last spring that
I actually took for approval for the second clarinetist to try in our
symphony. It was a hell of a good plastic! I can't remember the name of
it right now.
Roger Garrett
Professor of Clarinet
Director - Concert Band, Symphonic Winds & Titan Band
Advisor - Recording Studio
Illinois Wesleyan University

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