Howard Hitchcock, in his statement, made the following observations:
"The closing of the California office and retirement of Ken as well as rapidly diminishing sales are all material factors leading to this business decision."
"ERR has received nearly half a year’s worth of orders since the announcement."
Note the words "rapidly diminishing sales." I think that's the salient point in the whole announcement. Also note that sales didn't pick up until after the announcement was made. So when the smoke clears on all this, and those customers currently in the market have gotten all they need, what happens then? It's likely that the business situation for ERR products will return to the way things were before the announcement, that is, a diminishing sales situation.
As an aside, those diminishing sales numbers aren't going to be much of an inspiration to a company that might be in a position to take over ERR's business. It's unfortunate that Ken is retiring at this time; that may have been the straw that broke the camel's back. But a business with diminishing sales can't be supported forever.
So.....does raising prices support diminishing sales? Is that the cure? Obviously, it isn't, when a company's sales are already diminishing.