Pricing

[David Klaus]

We have no price changes planned or scheduled on the Local 206 engine.

Our program goes through an annual review in September. The only things that would impact pricing would be a huge increase in commodities (not likely) or vendor part pricing increasing which, given the economic environment, I don't see happening.

I can never say never but we have no plans or reason to believe that it will. Our program has actually been able to decrease our engine pricing year over year.

Compare this with a TAG, a Comer, or even a clone over the 18 months. Let's see, the BS project was $180 8 months ago and is now $350ish 'ready' to race last time I checked??

I feel pretty confident that our products, comparing pricing, has not even adjusted to keep up with the standard cost of living average over the past decade.

In just the last 3 years-- All our racing engines are now hand built, we have invested millions in tooling to limit the impact of emissions and tolerance variance, and made some great product advancements along the way without a real impact to our engine pricing.

We actively promote, support, and give back to the sport, in addition to just holding costs down.

[John Matthews]

Thanks Dave,

I really appreciate the program and I can honestly say that nobody in karting offers as much support to the dealers, racers, clubs, etc.

I haven't had so much interest in a new karting product in years and it's really what we need now to keep the sport alive and growing.

Keep up the good work
_________________
John Matthews
Heartbeat Power, LLC.