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Rant: Dealer markup on windsurf gear
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nodak



Joined: 13 Nov 2012
Posts: 116

PostPosted: Thu Oct 11, 2018 9:37 pm    Post subject: Rant: Dealer markup on windsurf gear Reply with quote

What do you guys think is the dealer markup for windsurf equipment? Is it somewhere between 30-40%? Is it fair to say the dealer nets a couple of hundred on an $800 sail? Things are way overpriced in my opinion but that's mainly because it's a fringe sport with specilized gear. It seems they charge however much they please. They sure cant sell the stuff in bulk to keep prices low. Not many dealers would be in business period had they specialized in windsurfing alone. Lots of questions here that require complicated answers. That's why it's a rant.

A nearby dealer is offering me the new Starboard Foil 147 in Carbon Reflex @ $2,600, so probably less picked up. Is the new Exocet RS D2 really worth $3,349 retail? There's something wrong if a 2016 Ultrasonic 147 is selling at a 35% discount at $2,000. These prices are out of control.
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NOVAAN



Joined: 28 Sep 1994
Posts: 1065

PostPosted: Thu Oct 11, 2018 11:21 pm    Post subject: Reply with quote

Windsurfing is like a drug. Once your hooked your hooked. You will pay what ever the cost to get your fix. Just remember that its free once you get to your spot. Almost free. A lift ticket at some ski mountains is pushing 200 bucks. I just spent 400 bucks for a half days fishing trip on the Rouge river. How about the $450 new driver in my golf bag. The price of a new f150 4x4 is 60 grand. Life is expensive. Windsurfing gear doesn't seem over priced. So you pay $800 for a new sail. If you care for it properly it could last 10 years.
That works out to $80 a year. if it lasts 5 years its $160 a year. Still cheaper than a one day lift ticket. That new truck I just got holds 36 gallons of high grade that just top 4 bucks. Thats $144 each fill up. I have a 5 year old chinook carbon boom that cost $750. It gets used almost every time I sail, and it looks really good. I'm guessing its going to last at least another 5/10 years. Not very expensive for high quality gear that lasts a long time...
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GarryW



Joined: 11 Mar 2001
Posts: 142

PostPosted: Fri Oct 12, 2018 12:27 am    Post subject: Reply with quote

Prices are not set my dealers but by distributors and manufactures. If you sell for less than than suggested retail price sometimes you risk losing having that line in your store.
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U2U2U2



Joined: 06 Jul 2001
Posts: 4848
Location: Shipsterns Bluff, Tasmania. Colorado

PostPosted: Fri Oct 12, 2018 9:51 am    Post subject: Reply with quote

Price structor to me is.
Retail so MSRP, for most set by the manufacture /company
Wholesale , determined by the distributor, sold to ??
Dealer cost.. could vary due to volume discounts.
Cost to distributor , volume discount, shipping accounted for.
Net cost to company for the finished product.


Fair market value, TBD by the consumer, supply and demand. Discounts happen when a package deal is considered.
No debate that stores have discounts, for valued customers , locals , etc.

The parent company will , normally, set a discount price for whats referred to as leftovers. 30% off fairly normal on sails.

If something falls into your purchase price bracket is your justification, no one lease can say, except your significant or other
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cgoudie1



Joined: 10 Apr 2006
Posts: 2160
Location: Killer Sturgeon Cove

PostPosted: Fri Oct 12, 2018 10:28 am    Post subject: Re: Rant: Dealer markup on windsurf gear Reply with quote

I think the dealer mark-up for big windsurf gear is probably around 20%.
I think that because that's their typical take for a board if I bring it in for
them to sell. Small stuff, like bases and universals, is probably more like
30-40%. The fin markup is probably 50%. Deals can be had, if you
feel your dealer is taking you for a ride, vote with your wallet and buy
stuff elsewhere, it's pretty much all on-line. This will of course have
the disadvantage of putting your local dealer out of business (ooh ooh
a clue that the mark-up is not outrageous). There are some great deals
on new stuff out there. One of my "local" dealers is Windance. They
have a killer deal on a Slingshot foil board and Foilworks foil right now
that can be had combined for $1500.

I guess a dealer might get close to 2 bills profit on an 800 dollar sail
if they sold the thing for retail. Wait and see what it sells for if it's still
in stock 2 years later. It's probably lost most of its markup by then.

Used gear (where I shop for it) can be had very reasonably. For example,
I just bought a 2013 Fanatic Skate in really good condition for $500 at
another local shop (Gorge Surf Shop). 99Ltrs, 15 lbs (with straps and
fin). I'm not a freestyle kinda guy, but you slap a 28cm fin in that thing,
(I bought one off a guy in my condo complex for $10) and I'm expecting it
to be a planing machine for 6.2 conditions.

I'm not saying this isn't an expensive sport, because it is expensive.
I'm just suggesting some of that can be mitigated. There's a lot of high-tech
materials and composite engineering (and manufacturing) involved to
get this stuff into the hands of those that want it. I'm not sure the dealer
is necessarily the issue (but I don't know your dealer).

.02

-Craig

p.s. I hear Frisbee Golf is pretty inexpensive ;*)

nodak wrote:
What do you guys think is the dealer markup for windsurf equipment? Is it somewhere between 30-40%? Is it fair to say the dealer nets a couple of hundred on an $800 sail? Things are way overpriced in my opinion but that's mainly because it's a fringe sport with specilized gear. It seems they charge however much they please. They sure cant sell the stuff in bulk to keep prices low. Not many dealers would be in business period had they specialized in windsurfing alone. Lots of questions here that require complicated answers. That's why it's a rant.

A nearby dealer is offering me the new Starboard Foil 147 in Carbon Reflex @ $2,600, so probably less picked up. Is the new Exocet RS D2 really worth $3,349 retail? There's something wrong if a 2016 Ultrasonic 147 is selling at a 35% discount at $2,000. These prices are out of control.
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kmf



Joined: 02 Apr 2001
Posts: 485

PostPosted: Fri Oct 12, 2018 11:08 am    Post subject: Reply with quote

I like this quote...off of the Sailworks site..

A WORD ON PRICES ...

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

It's unwise to pay too much. But it's worse to pay too little.

When you pay too much, you lose a little money that is all.

When you pay too little, you sometimes lose everything,

because the thing you bought was incapable of doing the thing it was bought to do.

The common law of business balance prohibits paying a little and getting a lot. It cannot be done.

If you deal with the lowest bidder, then it is well to add something for the risk you run.

And if you do that, then you will have enough to pay for something better.

There is hardly anything in the world that someone can't make a little worse and sell a little cheaper --

and people who consider price alone are this man's lawful prey.

John Ruskin / 1819-1900

KMF
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U2U2U2



Joined: 06 Jul 2001
Posts: 4848
Location: Shipsterns Bluff, Tasmania. Colorado

PostPosted: Fri Oct 12, 2018 11:51 am    Post subject: Reply with quote

Bet John never had to deal with China
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http://4boards.co.uk/
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U2U2U2



Joined: 06 Jul 2001
Posts: 4848
Location: Shipsterns Bluff, Tasmania. Colorado

PostPosted: Fri Oct 12, 2018 11:57 am    Post subject: Reply with quote

Supply and demand dictate , availabity and price to extent.

A dealer is not a non profit organization, he is entitled to make a profit,think it says that in the Constitution somewhere .

You could have noticed the days are gone that 1 or 2 year old stuff is availabe like it used to be. They cant afford to stock what doesnt sell, and its now sold before it gets old.

Windsurfing is as expensive as you want it to be. Plenty of good stuff on the used market.
And if in doubt ask ISO and he will find a 1YO setup thats pristine

_________________
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4Boards....May the fours be with you

http://www.k4fins.com/fins.html
http://4boards.co.uk/
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DanWeiss



Joined: 24 Jun 2008
Posts: 2248
Location: Connecticut, USA

PostPosted: Fri Oct 12, 2018 12:31 pm    Post subject: Reply with quote

A long time ago, many windsurfing shops existed. Quite a few simply were run as the personal quiver of the owner. Those shops shut doors in the late 1980s or early 90's. Those around now either started after the great contraction or figured out how to keep the lights on.

As for profit, hard goods make most dealers very little because of the cost of credit and carrying inventory in-house. The best way to finance the carry cost of boards, sails and masts is to dedicate much of the space to service or soft-goods where margins are typically 100% above dealer cost without a high risk of loss over time. In other words, a board bag three years ago will sell for the same price now as if it was made last week.

To the original post, I say that if you seek advice at a shop you should repay with your loyal wallet regardless of what percentage you suspect the shop makes on your purchase.

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NOVAAN



Joined: 28 Sep 1994
Posts: 1065

PostPosted: Fri Oct 12, 2018 12:55 pm    Post subject: Reply with quote

I started in 1982. I was making $1200 a month. By 1985 I was seeking wind any where it blew. I had a white ford van full of boards, sails, booms, masts and bases. Most of the parts were not interchangeable. The gear was less than good but we made it work. Today I make a lot more. I have a f150 with a 6.5 foot bed and a cab high shell.. I only need to carry 2 boards, four sails, 2 booms, two masts and two bases to cover my needs. The gear is lite stable and rangy. It all fits easily in the short bed with lots of room for golf clubs, fishing gear and all the things my wife needs for a month stay at South Padre. Windsurfing is so much easier and cost effective now
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