1992 Cost Comparisons - Bergstrom Skegs, Inc.

Our products
keep
your money
in your pockets longer

The finest wear rods and... we can prove it!

*Cost comparisons of similar carbide wear rods*
Year	Bergstrom Skegs 4"	Roetin 4"	Sno-Stuff 3 3/4"	Woody's 4"
1988	n/a	$29.95	$37.90	$58.50
1989	n/a	$29.95	$44.50	$58.50
1990	n/a	$39.95	$38.50	$58.50
1991	n/a	$39.95	$40.50	$57.95
1992	$34.95	$39.95	$39.50	$57.95
1993	$34.95	$39.95	$39.99	n/a
1994	$34.95	$39.95	$39.99	n/a

*Cost per inch*
Year	Bergstrom Skegs 4"	Roetin 4"	Sno-Stuff 3 3/4"	Woody's 4"
1992	$8.74	$9.99	$10.66	$14.49

*How much more you're paying for "their's"*
Year	Bergstrom Skegs 4"	Roetin 4"	Sno-Stuff 3 3/4"	Woody's 4"
1992	x	31%	31%	39.7%

*Retail Prices*
X	Bergstrom Skegs	Sno-Stuff & Roetin	Woody's
Retail Price	$35.00	$40.00	$58.00
Percent of Profit
10%	$3.50	$4.00	$5.80
20%	$7.00	$8.00	$11.60
30%	$10.50	$12.00	$17.40
40%	$14.50	$16.00	$23.20
50%	$17.50	$20.00	$29.00

This chart shows why dealers preferred to sell Woody's bars. They generated higher profits (more out of your pocket) when they sold Woody's.

Marketing types would call their strategy brilliant - maximizing the retailer's profits along with the distributor profits. Not by providing the best product, but by selling an average product at a higher price. Each level is making the same margins but on larger dollar amounts. The American dream, to some, if you are at the receiving end. But, it's like paying more taxes without receiving any new benefits, if you are at the other end. Guess what end they put you at?

We understand the profit motive, but we believe durability will generate product loyalty which, in turn, will generate long term profit. Our $17.00 hardsurfaced wear rods were out wearing carbides for years when the profit motive took over the customer service motive in the industry. We started making carbide when their nerve became intolerable.

Dealers that offer our products show they have your best interests at heart and do not look at you as their personal revenue source.

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