I had sent them an email about the price increase of their KH uni’s. I thought you guys might be interested in the result.
“I was planning on purchasing a KH24 and then realized you had raised the prices dramatically. Would you still be willing to sell one at your old advertised price?”
“Hello and thanks for your interest in our unicycles. Mr. Holm contacted us about not following his pricing requirements and his threats to cut us off from our suppliers so we complied.
I’m afraid we could get into some serious trouble if we do not sell at the price he dictates so
let him ( Kris Holm) know how you feel. I’m afraid our hands are tied.
Thanks for your inquiry and potential business.
Best regards, ____”
More or less what I was expecting, but I thought I’d share anyway.
BI = Bike Island. This was a response to the recent deal of the century they had, listing KH20’s at $360ish, KH24’s at $405ish, and KH29’s at $420ish. If you go to their site, the price has been increased by ~$200 across the board.
Edit: I’m not saying it’s not fair, I just thought it was interesting. I half expected them to do a deal under the table for a quick sale as the whole operation seemed a little shady. But they do have some business sense.
My (semi-educated) guess is that he sets a price which is profitable for whoever is selling his product. By having a set price the dealer is guaranteed profit without the risk of his prices being undermined by other companies. This takes the risk out of selling KH cycles and makes it a more likely that many companies would be willing to sell his products.
When businesses sell at less than the MRSP they can undermine their competition which may be good for them but ultimately bad for the manufacturer as less companies may be willing to sell their products. This is especially true in niche markets.
when a bike shop like BI or AE sell something, they rely less on the profits from a unicycle sale because they sell so much more than a unicycle specific company.
When they put something so cheap that people stop buying from unicycle specific retailers, this hurts the unicycle community way more than having access to cheap stuff because it means that the unicycle companies have less money to put back into development and community support.
So long story short, if you buy from a non unicycle shop you hurt the future of unicycling.