Pricing?

One issue we’ve been discussing for a while as a team is how to price our kites. In small production batches, each kite will cost us around ~$500 including shipping. Kites sell anywhere from $800-$1500. However, many kite companies offer their products at severely discounted rates or bundle them with lessons or other products. A strategy some of the smaller kite companies we talked to employ, is giving lessons then offering a “pro discount.” People like to feel like they are getting a deal, so setting a higher price point initially with the intention to aggressively discount may be good strategy to just get the product out there. Especially as a new company, we are going to need to add some incentives to get people to go Engine.

To test our pricing and wind sensor hypothesis, I walked around Crissy Fields and Ocean Beach for a while chatting with as many kite surfers as I could find. Grand total of 13.  100% indicated interest in getting up-to date wind conditions at their favorite beaches, so good stuff there. While I couldn’t get anyone to agree to buy one of the kites on the spot, I did get email addresses from 10 people and overall there seemed to be some genuine interest. People said they didn’t want to commit to purchasing without seeing the product and maybe a review or two first, fair enough.  I started off telling people the kite was $1000 bucks, and while no one’s jaw dropped many people asked if they could get a discount for agreeing to purchase an untested product. Basically, it seems like setting the 1k price with the option to discount and then bundling our product with other services like free lessons and repairs should be our initial strategy.

 

Kitesurfers at Ocean Beach

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