When we started selling Bridge City Tool Works products in April of 2017, our pricing target for the officially licensed Chinese made versions of these tools was approximately half the selling price of the BCTW USA made products. We have generally met that target on most of our products and on some such as the HP-8, we actually have been selling at a price that is significantly half of the BCTW USA prices. And during this time, we have had selling prices far lower than most other international BCTW dealers.
Unfortunately, it appears that we won't be able to continue to meet that 50% pricing target. We've just received notice that the pricing on future orders of BCTW tools from the Chinese licensed manufacturer will be increasing in price by 20% - their justification for this is that manufacturing costs in China have been increasing due to both meeting new air quality standards and also material price increases.
So for now, we have increased the selling prices of the BCTW products on our website by an average of approximately 15%. We apologize for this, but it was the minimum change we could afford to make - we will now be making lower margins than we have previously and they were not that high to start with - we hope that this will allow us to continue to sell BCTW tools in the future. In spite of our price increase, our website prices for BCTW tools still appear to be lower than other international dealers.
Thanks for your understanding
Northwest Passage Tools