I get it that whenever we make changes, some will be welcoming and some won’t. You are all entitled to your individual opinions on the upgrades, but I would like to set the facts straight.
The Oladra technology is not being put in the K50 case. That is why it took us 12 months to adapt the technology to hit a lower price level, and it means it hits a lower performance level too.
The cost of upgrading the Oladra is NOT cheaper for us to perform than it is for the K50.
The cost of the upgrade is not driven by the price increases.
The upgraded Oladra is quite a different animal than the upgraded K50. Very much more open, deep and natural. The K50 benefits mainly from getting the kind of ease and flow that the Oladra possesses, and this is a bigger gain for the K50 owners, for sure - no argument there.
We have a simple pricing policy. We multiply parts costs by a number that covers our other costs and then do some rounding. The multiplier is constant across all products. We have to have a different multiplier for upgrades because ‘other costs’ are a higher proportion of the total costs. The multiplier is the same across all upgrades. We do not have a higher multiplier for the Oladra. Our prices are cost-based, rather than value-based, because we see that as being more ethical.
When we get ready to do upgrades we try to pack in as much value as will make the upgrade cost worthwhile. For example, if we only added the new USB output in the upgrades, the upgrade cost would not have been much less and would have been disproportionately driven by the cost of getting the units to us, dealing with two border authorities, unpacking, testing prior to upgrade, testing after upgrade, packing, shipping the units back to you and dealing with two border authorities again. I realise you derive no benefit from those procedures but they do involve real people that want to be paid for their work.
So, what if you decide not to upgrade this time round? Just as we have upgrades for the K30 and early K50, we won’t leave you behind. You will just need to pay a bit more in the next upgrade offered if you choose to take it. How much more depends on the extra parts involved.
We are super happy to have you guys as customers and will do our best by you, consistent with me being able to meet all the bills and keep my wife in shoes. It is incredibly valuable to us to understand how you feel about what we do, and I don’t want to interrupt this very interesting discussion. I just wanted to state our position on a few statements that have been made.