Agreed about the purpose of the store event - as noted earlier.

However, does your justification for higher price (namely, higher profit) see the purchases at the store event soley in the context of the dollars spent at that event? If I was a shop keeper I would much rather sell 25 models @$25 to 25 customers than 10 models to 10 customers @$65 - even if the latter sale nets me a few bucks more.

Why? For the same reason I'd rather have 25 people come through my shop than 10. I get 2½ times as many chances that the customer will make other purchases and/or come back later. Don't forget the whole notion of collecting and collectibles implies repeat purchases. And we've already spent considerable time discussing how to prevent the market from stagnating - ie., from being satisfied with its current customer base. Between $125 Hillsboros and re-issued Portland Heads, surely a $25 Event Piece is not too much to ask as a token attempt toward garnering new customers and thus even greater future profits.

I think Sean's point here fits the case perfectly. How many people are more likely to make an additional HL or other giftshop purchase when they buy a $25 event piece than when they buy a $65 event piece? Based on that equation, could the $65 event piece end up costing business?

I do completely agree with you that we should first and foremost attempt to understand anything done by Harbour Lights in terms of maximizing profit. There may be lots of warm and cuddly reasons why they do what they do, but the first place to look for any explanation is at the bottom line. Don't get me wrong - nothing wrong w/ making a profit - its the American way. :-) We're talking about marketing and market dynamics.

And to speak to your question - frankly I'm not at all amazed that HL can design, produce, market, and distribute 10 new limited editions (100,000 models) for 3.75 million dollars. The first 10 of each are probably real expensive - the rest are probably real cheap. Goodness only knows what the manufacturer pays all those 14 year old Chinese girls who paint the little dears - care to take a guess? This is not a knock on anybody - just a nod towards HL's obvious (as opposed to amazing) profit making capabilities.

Also agree with Rod. The EP is/was a great opportunity for HL to do smaller lights - ones not naturally suited to a full size LE. I personally would really much prefer a cute little Cheyboygen crib light than the Profitable Pineapple. :-)

Eating fruit salad in the Fog Signal Building,
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/im