As I have said before, the Folbot community feels very much like a family. And families usually share news — the good and the bad. For a company family, they call that sort of sharing ‘corporate transparency.’ While that doesn’t really sound warm and fuzzy, we do believe it’s important to be open and inclusive – and we hope that the more we are, the happier and closer we will grow together.
It has been said that it’s better to do the hard stuff first-. so, let’s get that out of the way. For the last couple of months our suppliers have been sending us notices of price increases. Naturally, the more materials cost, the more expensive it is to make your kayaks – and the more our margins erode. The more our margins erode, the less viable Folbot is as a company. Tony and I have spent a lot of time the last couple of months taking a long hard look at the cost of everything Folbot does, and the reality is that we are going to have to increase prices. If we don’t make money, we can’t make kayaks.
But, there is good news too. First, we promise to do our very best to control the costs and limit the price adjustments as much as we can. Our kayaks will still be priced way lower than our competitors and continue to be an outstanding value. We will not cut corners and you will still get the same high quality kayaks and excellent customer service that Folbot is known for.
And second, right now we are running a huge sale before prices go up (20% off everything you buy if one kayak is ordered, and 25% off of everything if two or more boats are ordered — until January 31st). This is likely the best pricing opportunity for buying boats going forward, because we also realize that we can’t continue to have such frequent big sales in the future. So buy now!
Of course, this raises the question, ‘how can you run such a great sale if your costs are rising?’ The answer is- cash flow. Having bought Folbot in September, Tony has compared our timing to that of buying a ski slope in April. Well, we have been ‘fixing the chair lifts’ and the ‘patching the ruts in the slopes’ – but most people don’t buy lift tickets and ski in April. So, as a way to get some cash flowing inward, and to honor our customers before our ‘season’ begins, we hope that the volume of orders now will offset the smaller margins we will make on the boats. So buy lots!
Plus, what a way to kick off 2008, our 75th anniversary year — which we are really looking forward to celebrating with you all in April!