PD Announces Price Increase & New Pricing Policy
In response to escalating costs in petroleum-based raw materials, as well as the impact of continual rising costs of other supplies and overhead expenses, Performance Designs, Inc. is implementing a price increase effective June 23, 2006.
"We've experienced increases of more than 20% in some areas," said John LeBlanc, PD Vice President. "PD has absorbed these steadily rising costs for as long as possible, but it is time to make what has come to be an inevitable price increase on our products. Knowing that our dealers face many of the same cost pressures, we anticipate the same increases will be passed along to the skydivers."
In a related move, PD is modifying its pricing policy to be wholesale-based rather than discount-based.
"This means that while the suggested retail price will remain the same, wholesale prices will be increased on a canopy-by-canopy basis. We are pricing our canopies based on our costs - which our ERP software allows us to measure for each canopy - and using that to determine the wholesale price to our dealers," LeBlanc continued. "We expect PD dealers to begin quoting prices in fixed dollar amounts instead of a discount off of suggested retail, because that is how we are setting our prices to our dealers."
Rob Wilson, PD Marketing Manager, added, "For a long time, skydivers have had to calculate the percentage discount, figure out what that means in terms of price, and then shop around for the 'best' price. We believe the market would benefit from a more straightforward approach to pricing - moving from bothersome calculations to simply: 'this is the price.'"
"We understand the sensitivity to prices," he continued. "But there is another part of the purchase equation called value. We believe that skydivers know that canopies manufactured to international quality standards, that go through multiple levels of inspection throughout production, that are development-tested more than any other canopies in the world and that use the best materials money can buy results in a stronger, better performing and longer lasting canopy.
"For skydivers seeking such quality, value far outweighs price considerations. That is what we will be focusing on in the coming months and years - quality has a price, and it is well worth it."
"Part of our goal is to help the dealers take the focus off of price discounting and put it on helping the skydiver become a better skydiver. Making sure they are getting the right canopy for their skill level and their progression in the sport is a whole lot more important than shaving a few dollars off the price", said Wilson. "This simplified dollar-based approach to pricing is a step in the right direction."
"The key thing is to call your PD dealer, use that conversation to make sure the canopy you want is right for you. And then get the purchase price", he said.
Performance Designs, Inc. is the world's premier sport canopy manufacturer, setting the standard for innovative design, unmatched quality of materials and manufacturing excellence. PD's premise of "the dream of flight" is enjoyed by skydivers on 5 continents across all disciplines. PD products are preferred by skydiving professionals for their superior flight characteristics and performance capabilities. To learn more about PD products and services, or to find the PD dealer near you, visit PD's website at www.performancedesigns.com
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