HOG Service Kit price bump, more than 50% more expensive

[diveprof]

Wow, I can't believe this.

Look at DRIS pricing, $25 and $20 for 1st and 2nd stage kits are not unreasonable. they are compatible with what other manufactures are charging. HOG still let you buy the kit and service your own reg.

Then think about the entire situation, Chris/Edge/Hog is already offering some of the best performing gear at value pricing. If you ever even talk to Chris, you know he is not the kind of businessman that takes advantage of his customer. He needs to make a living too. Either way, you are still coming out on ffar top with Edge/HOG in terms of performance/cost. And imageine without HOG, you will be paying much more for the same performance and quality. I don't like price increase either, who does. But I absoulutely hate to see people turn their back to Chris just because he decided to raise price to cover his cost.

Did you read my remarks before bashing? I made it clear that I'm not bashing HOG, actually the opposite. However, a 50% price jump is significant and to me represented a departure from his previous business model of offering great gear at an inexpensive price. My reference to AWAP's comment supported AWAP's stance that Chris find another supplier if needed. Not talking about substandard parts, but a better price on comparable parts. That would be something Chris would do....

 

[ktomlinson]

This is a VERY high increase in price (and the pricing on service kits was recently a deciding factor to change over some regs I had from DiveRite to HOG).

What were you paying for dive rite kits? I have dive rite regs and am under the impression that service kits are free for the life of the regs. You have to buy one kit and then send in the ones you replace and they will send you a new kit free. My LDS told me that "this is only for dive shops" but I think they are full of it. HOG gear is great gear, I just didn't know how you were evaluating the service cost.

 

[cbm32]

Unless I missed something...this is about 2 things. One is perception and the other is a math error.

The math error has been corrected and hopefully everyone read that part and understands it.

The perception part may be getting over looked by most everyone because I havent seen a comment on it since Chris posted what he did.

The HUGE jump in price....is really more like 2 or three increases and not just this one. HOG kept the price down low and made very little on the kits and less and less as they held the line as prices went up. Then, they got in a huge shipment which allowed them to keep the prices down while the market went UP because they had already purchased ahead and didnt have to restock. NOW they got to a point where they had to restock at the higher prices and MUST increase prices dramatically to make any profit at all.

Said a different way...when HOG had a large supply of kits on hand and didnt need to buy any they could have kept track of the market and raised prices according to the market a long time ago even though they bought the kits at the lower prices. NO ONE would have known the difference but them. No one would have been shocked at a ten or fifteen or twenty percent increase and HOG would have been making significantly more on their kits. Then this increase would have been along the same lines and most people would have said...oh they went up a little.

Combine the delayed price in crease with the math error and it is "OH MY GOD THE SKY IS FALLING".

Just goes to show you that no good deed goes unpunished

 

[ElGaucho]

Being the OP, I now see this more clearly. I still think Chris should make an official announcement that really clarifies this the way it should. Otherwise it´s just looking like Hog has made a huge bump in price for service kits, when it actually only made a slight increase (which is PERFECTLY understandable). I found it REALLY weird that the price hiked so much, that´s why I posted. Evidently, there were other factors in play.


From my understanding we had two factors:

- A need to increase the price on the kit (understandable, reasonable), so a new price list was issued

- A change (or new option, this is the part where I am not clear about it yet) in the components the kit uses, from original buna to viton (O2 compatible) o-rings


When you look at the price difference with hike AND a change from buna to viton (that nobody really knew about) it did look bad, because there was no apparent reason for a more than 50% increase. Now that it is clear that there are more factors involved, I think there is no reason to panic.

A clear statement from Chris, would definitively put this thread to rest, since there seems to be two new kits you can order and people should be aware of that.

 

[diveprof]

Post removed.

 

[Dive Right In Scuba]

Being the OP, I now see this more clearly. I still think Chris should make an official announcement that really clarifies this the way it should. Otherwise it´s just looking like Hog has made a huge bump in price for service kits, when it actually only made a slight increase (which is PERFECTLY understandable). I found it REALLY weird that the price hiked so much, that´s why I posted. Evidently, there were other factors in play.


From my understanding we had two factors:

- A need to increase the price on the kit (understandable, reasonable), so a new price list was issued

- A change (or new option, this is the part where I am not clear about it yet) in the components the kit uses, from original buna to viton (O2 compatible) o-rings


When you look at the price difference with hike AND a change from buna to viton (that nobody really knew about) it did look bad, because there was no apparent reason for a more than 50% increase. Now that it is clear that there are more factors involved, I think there is no reason to panic.

A clear statement from Chris, would definitively put this thread to rest, since there seems to be two new kits you can order and people should be aware of that.

The new pricelist wasn't just because of service kits New products, new pricing, and every year there is new price lists with ALL companies. Nothing new

As for the parts kits, Chris has only ever sold the Viton kits...Remember this is a technical line. Most people aren't running air in their tanks with these regs. With a HUGE price jump on the Viton kits, they also brought in the Buna kits. I doubt we will sell many Buna kits....

Let's face it, these are service kits. Chris MAY make $1000 dollars a year selling these things....and you want a "response" from him to put this to bed? I'm sure he will respond, but GEeeeez people...its a service kit....I would really hope you would rather he comes out with new products, better pricing, and other things to keep other manufacturers on their toes other than telling you the same info that was already made available. There are better things he can do for you....

 

[mathauck0814]

I would really hope you would rather he comes out with [...] better pricing

As the brand gains popularity and volume picks up, one would hope that he'd be using that leverage to drive prices down, not up.

 

[Griffo]

So i'm a little confused. WHen I look on the DRIS website now, the kits are $19 and $14, isn't what they were previously?

On DGE they are $34. What's the correct MSRP ?

 

[cerich]

Folks, we messed up on the MAP on the new price list, EXACTLY as I stated, it was actually based off a formula I gave the person doing the new price list, that formula had the dealer price and the MAP higher, I told him to lower the dealer price to lower than the formula showed (in other word made the decision to take a lower margin on kits) but forgot to have the MAP changed to reflect that. I held the price too low too long, I HAD to raise them and even still the margin SUCKS. In fact I should have put the price higher two years ago and again last year and again this year and it should be higher now. Offering individual parts not kits may (or may not) be part of the solution. For now we will be offering buna as well as viton kits.

I'm sorry that people feel this is some huge departure from the way we do things here, it isn't. Some brands believe that a x% per annum price increase is always justified, I don't and try to always work from what it actually costs me to get product in hand.

The reason that Dive Right In Scuba has the correct price and DGE express does not is that Mike saw this post and we talked today. He got it corrected and to be honest I haven't had a chance to talk with DGE (or any other dealers yet).

One common thread that I see EVERY time any price increase comes along is people are quick to jump in with a "the sky is falling" or better yet "now that EDGE/HOG has a name they are going to raise prices" all of which is predicated that what we are doing here because it is so different is some type of loss leader to get a toehold in the market. It isn't. Our mission is to offer the highest quality products at the best value, it really is that simple.

So i'm a little confused. WHen I look on the DRIS website now, the kits are $19 and $14, isn't what they were previously?

On DGE they are $34. What's the correct MSRP ?

 

[Belmont]

Unless I missed something...this is about 2 things. One is perception and the other is a math error.

The math error has been corrected and hopefully everyone read that part and understands it.

The perception part may be getting over looked by most everyone because I havent seen a comment on it since Chris posted what he did.

The HUGE jump in price....is really more like 2 or three increases and not just this one. HOG kept the price down low and made very little on the kits and less and less as they held the line as prices went up. Then, they got in a huge shipment which allowed them to keep the prices down while the market went UP because they had already purchased ahead and didnt have to restock. NOW they got to a point where they had to restock at the higher prices and MUST increase prices dramatically to make any profit at all.

Said a different way...when HOG had a large supply of kits on hand and didnt need to buy any they could have kept track of the market and raised prices according to the market a long time ago even though they bought the kits at the lower prices. NO ONE would have known the difference but them. No one would have been shocked at a ten or fifteen or twenty percent increase and HOG would have been making significantly more on their kits. Then this increase would have been along the same lines and most people would have said...oh they went up a little.

Combine the delayed price in crease with the math error and it is "OH MY GOD THE SKY IS FALLING".

Just goes to show you that no good deed goes unpunished

Very good analysis, I made that same mistake in my business. I kept prices low on some accessories, absorbing increases from my suppliers for a few years and then, when I could no longer support it, having to change my price list.

It made a noticeable difference and I had some serious explaining to give my customers.

Now, I have a feeling that the scuba diving world is populated by a higher percentage of low budget cheap skates ready to shave pennies as compared to say, the motorcycle or the ski crowd. Thats my take on what I read in threads like this on the various forums.

I hear of bikers not blinking when buying an $800 chromed pipe for their Harley or skiers a $5000 pair of skis.

One more thing, HOG should review their distribution system in Canada. They have a master distributor here that seems to take his cut without providing much service to his dealers.