The Importance of Pricing Adjustments: Why Saleae is Raising the Price of Logic

As a consumer-centric company, Saleae has always prioritized keeping prices low. However, due to various challenges and unforeseen circumstances, the company has been forced to reevaluate its pricing strategy. In this article, we will explore the reasons behind the price increase of Logic, Saleae's popular logic analyzer, and what this means for customers and the company's future.

The Need for Pricing Adjustments

Saleae's CEO, Joe Garrison, has always been committed to providing high-quality products at affordable prices. However, the company's aggressive pricing strategy has led to cash flow challenges, particularly with the development of new products. The introduction of the new Logic lineup required significant investments in engineering talent, which put the company in a moderately cash-flow negative position.

• The company hired additional engineers to support the development of new products, resulting in increased costs.
• The development process took longer than anticipated, leading to a longer pre-order period and delayed shipping.
• The pre-order period was not as successful as expected, with many customers preferring not to pre-order due to the nature of the product.

The Reality of Cash Flow Challenges

Despite the company's best efforts, the cash flow reality is more dire than expected. Saleae requires working capital to manage inventory and cash flow gaps, which has been depleted due to the delayed shipping and pre-order period.

• The company's cash reserves were burned down during the pre-order period, leaving limited working capital.
• The introduction of in-house pick and place manufacturing has been problematic, resulting in slow and delayed production.

The Decision to Raise Prices

Given the current challenges, Saleae has made the difficult decision to raise the price of Logic. The new prices are as follows:

• Logic 4: $109
• Logic 8: $219
• Logic Pro 8: $479
• Logic Pro 16: $599

This price increase will help the company to:

• Ensure its near-term survival
• Invest in future cost reductions
• Develop new features and improve the pace of development

A Commitment to Customers

Saleae values its customers and appreciates their feedback. The company is committed to providing high-quality products and services, and the price increase will enable them to do so.

• Customers can provide feedback and suggestions through the company's website.
• Saleae is raising a small amount of debt financing from private individuals to support its working capital requirements.

Conclusion

The decision to raise the price of Logic was not taken lightly, but it is necessary for the company's long-term success. Saleae is committed to providing high-quality products and services, and the price increase will enable them to do so. For more information on Saleae's products and services, visit their website. To learn more about the company's manufacturing process, read our article on transitioning away from in-house manufacturing.