Re: [Harp-L] Hohner Price Increase

[Vern <jevern@xxxxxxx>]

I don't think that you can attribute the increase in harmonica prices to the increased cost of raw materials.

A diatonic harmonica weighs about 2 ounces or .12 lb.
The most expensive material of the harmonica is the copper in the brass reeds and plates.
The current price of a pound of copper is $4.30
If the harmonica were made entirely of copper, its raw material cost would be only about 54c.
Actually, the harp also contains far cheaper zinc, steel, and plastic.
About 25c would be a pretty good rough estimate for its raw material cost.

The rest is the cost for tools and facilities, labor in all of its forms, marketing costs, and...of course...profit.  Because they are made in foreign countries, currency exchange rates are...as you say...a factor.  

If people are buying fewer harmonicas, the fixed costs become a higher proportion of the total and the price must rise. It is my guess that this is responsible for the increase.

It is easy to attribute a price increase to manufacturer greed.  A free market is pretty good at controlling greed.  We have plenty of competition including a struggling American startup and a failing Brazilian startup. If prices get outrageous  the startups and the repairers will flourish.  

Vern
 
On Jul 1, 2011, at 8:56 AM, fjm wrote:

> Anything metal is a lot more expensive than it used to be.  Steel used to scrap at 2 cents per hundred weight now it's about 20 cents a pound.  Copper is hovering between 3 and 4 dollars a pound scrap.  Zinc makes pennies worth more than their face value.  The recent spike in energy prices hasn't helped and the dollar is very weak against world currencies.  I'm not sure what Hohner's supposed to do.  Sell harmonicas for under cost and make up the difference in volume?  fjm