Gregg,
I'm sure you realize that the folks on this forum are a minority of the club racers out there. Not only that, but I would venture to guess they are for the most part more technically inclined and safety conscious.
So, I try to answer the question from the point of view of many of the guys I race with. With that in mind, I think you would be pissing in the snow at a $500 price point. It is simply too much. You and I, and others on this board can pontificate about the importance of safety, $10 helmet/$10 head, yada, yada, yada, till the cows come home.
It's not going to change the market out there. Which is all about perceived value and price. We are a nation of walmart shoppers looking for the blue light special in every aspect of our lives.
Lets take a look at how the "typical" person does the "value math" in their head. "Restraint system" hmmmm, I can buy a full set of belts (restraint system) for $120 nowadays. Head and neck "restraint" system = $700. That math just does not work. Let's take it a bit further. Belts = a bunch of webbing, some buckles, latches, hardware etc. $120. H&N system = some small cables, a couple little shocks, and some hardware. $700... THAT math really doesn't work.
Being in business for a number of years now, specifically product development and new business start-ups. I'm painfully aware of the costs associated with product development. But the bottom line is, the customer doesn't care. It's not their problem (I know you realize this, just making the point).
If you want to sell more h&n systems to this group of people, one of three things need to happen:
1. They have a serious wreck that serves as a wake up call.
2. One of their close friends has a serous wreck that serves as a wake up call.
3. The price point is "reasonable", such that it is not an agonizing financial decision any more. "ok, might as well get an h&n now that they are down to $200".
All the graphs, and data, and technical mumbo jumbo are not going to sell quantities of this product.
We are a short attention span, what's in it for me, materialistic, high shock value, instant gratification society these days. A society who learns best visually. Want to sell more of your existing h&n system? Make a mobile sled test demo trailer, and take it to the major events.
You need to "shock" people into understanding the seriousness of this issue. Graphs, data tables, pictures, videos etc are not enough. It needs to be in their face. They need to see, in person, that dummy slamming its head on the steering wheel. With this approach, you capture them in their environment. It becomes real for them, they can imagine themselves as the dummy. Yes, I know there is issues with costs, staffing, and access to events. But it was a thought.
As far as differentiating this new, less expensive product as being "slightly less effective". I might be a bit uncomfortable with that type of marketing strategy. Again, keep in mind your audience (not the people on this board). They tend to view an h&n system as either being "good enough", or not. If you come out with a $400 system that "maybe" "slightly less effective" (dependant on the situation) then the $700 system. They are likely to view the $400 system as "good enough" and write off your $700 system as price gouging.
I realize you can justify the price/performance differentiation with technical data, but there is just too much gray area here, and "black magic" for the average person. They just don't care about this percentage or that percentage. In their mind, it is either "good enough" for "most situations" or it is not. They want to buy a "reasonably priced" h&n system, that works "good enough", under "most circumstances".
From a business stand point, what it really comes down to I suppose, is the opportunity costs associated with bringing the lower cost system to market. If the design is in the can, and the costs to bring the thing to market and support are next to nothing. Then I suppose the incremental sales of the lower cost model might be worth it. However, if the costs are objectionable, you may be better off allocating those resources towards selling more of your existing system. Particularly if you envision the new system stealing sales from the existing one.
Wayne
