The dynamic range of cost

Posted on March 1, 2024 in Blog News

Early in the week of March 4th, 2024, we will be changing our price range slightly.  The top end of the Power slider will remain the same, but there is a price increase at the bottom end.  As a result, all of the Power levels in between will see small price changes, with the change dwindling to zero at the top.  Our Pricing page has already been updated with the new rate schedule.

It is important to note a few details about our decision to shrink the price range of our service.  First, we have had the same price points for about 10 years now, with no increases or decreases.  Second, there have been cost-of-living increases in the USA almost every year since our beginnings 12 years ago.  Third, even after bringing up the low end, our lowest rates are still about one half of our competitors rates.  Lastly, the vast majority of jobs on our farm these days are run at the lowest Power levels.

When our previous price schedule was developed, it was made with the assumption (based on real-world experience) that there would be more utilization than current of low-mid, mid, high-mid, and highest Power levels.  Of course we tapered that curve as it approached the top.  For many years, actual utilization of the farm held reasonably closely to the predicted model.  The past two years, however, have seen a notable shift toward the lower end of the spectrum.  The previous model simply won’t allow us to continue to be viable, with the previous lowest cost being close to loss leader levels.  That’s not something you can make up for with volume, unless your goal is to go out of business faster.

While we have held off on this pricing change longer than we should have, hoping for a market shift, it is clear we have no choice but to institute the change as soon as possible.  Thanks for your understanding and continued support!


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