Hi Guys,

I have noticed in the last couple of weeks that the shops are running some sales and I have to admit that some of them are offering massive discounts. Could this be because the season is coming to an end and they just want to get rid of what is left?
Would you suggest to wait till next year gear arrives? Do you know when they will be releasing 2015 gear?
Will it be worth it to grab one of these deals doing a little bit of shopping around this time of the year?
Does anyone know a website or online store that runs competitive deals?

Cheers...

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Zamet said..

Hi Guys,

I have noticed in the last couple of weeks that the shops are running some sales and I have to admit that some of them are offering massive discounts. Could this be because the season is coming to an end and they just want to get rid of what is left?
Would you suggest to wait till next year gear arrives? Do you know when they will be releasing 2015 gear?
Will it be worth it to grab one of these deals doing a little bit of shopping around this time of the year?
Does anyone know a website or online store that runs competitive deals?

Cheers...

WOW talk of 2015 gear already............ some ones keen!!!!!!!!!

The prices in these sales will only come down further once the 2015 gear is out so wait it out i say.

New gear starts coming out around August/September for most brands.

No wind hey spark??

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Zamet said..

Hi Guys,

I have noticed in the last couple of weeks that the shops are running some sales and I have to admit that some of them are offering massive discounts.
Does anyone know a website or online store that runs competitive deals?

Cheers...

Hey Zamet,

If there are, as you say "massive discounts" being offered from your local shops, why would you be looking for competitive prices from online stores or other websites? If you guys don't support your local shops, it wont be very long before you wont have one to go to and then you won't have the choice!

Support your local, trust me, none of us are getting rich selling kites, we made a lifestyle choice.

DM

If you have to ask then the answer is yes buy the special kites! The difference between a 2012,13,14,15 kite is minimal. Unless you want the very latest of a particular type of kite for a specific reason then the 2013/14 kites will be awesome.

My guess is all the kiters that kite in the "in season" will pack their gear away soon and go into hibernation. The sales for kiting products over winter will drop off significantly and by the time spring rolls around there will be another generation of kite to peddle.....

So....

Stock held over winter is dead money and worth less at the end of winter. Sell in now before the weekend warriors pack up for the year!.

Wait till Easter...

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ActionSportsWA said...

Zamet said..

Hi Guys,

I have noticed in the last couple of weeks that the shops are running some sales and I have to admit that some of them are offering massive discounts.
Does anyone know a website or online store that runs competitive deals?

Cheers...

Hey Spark,

If there are, as you say "massive discounts" being offered from your local shops, why would you be looking for competitive prices from online stores or other websites? If you guys don't support your local shops, it wont be very long before you wont have one to go to and then you won't have the choice!

Support your local, trust me, none of us are getting rich selling kites, we made a lifestyle choice.

DM

Totally agree with all of that. Not sure why you quoted the OP and then addressed me?

Anyway, spot on DM

'Massive discounts' is a very subjective thing.

Any examples?

Saw this come up on FB www.facebook.com/kitepower.sydney

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pdl said..

kiterboy said..

'Massive discounts' is a very subjective thing.

Any examples?

On the weekend I bought a brand new, unopened 2013 North Race LTD 59 for $450. Even though I can't ride it (yet), I was pretty stoked.

Sounds good; where'd you get it from and why so cheap?

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dwdw said..

Saw this come up on FB www.facebook.com/kitepower.sydney

15% isn't massive.

$500 off a 2014 board is good, but having to buy a 2014 kite to get it negates that saving, making it non massive.

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kiterboy said..

dwdw said..

Saw this come up on FB www.facebook.com/kitepower.sydney

15% isn't massive.

$500 off a 2014 board is good, but having to buy a 2014 kite to get it negates that saving, making it non massive.

Meh. KP should give discounts as their online prices are way over full retail in some shops. Sorry Steve, I don't mean disrespect but putting up the Chrono for nearly $2900, for example when the 15mt with freeride bar can be purchased for around $2600 new from other shops (won't say who), is a bit much IMO. Just my opinion on prices.

www.kitepower.com.au/

:)

Also our prices are exactly the same as the "full RRP" set here - ozonekites.com.au/products/chrono/

10-15% is what you would expect to get as a discount if you had build a good relationshiop with a shop.
30-40 % is clear out stock pricing with possibly some margin still left for the shop owner
50%+ is a shop quitting dead stock at a loss.....

Well that's my uneducated guess anyway.

So... 30+% to me = massive and definately worth buying compared to full retain on this years goods.

Hey Plummet,

Anything more than about 30% discount and a shop is losing money on a kite due to fixed overheads and costs in running the business. A 15% discount is the shop owner giving away 50% of his or her gross profit which we then pay tax on.

A kite at 50% is a huge loss for a shop and we are trying to recoup some money.

DM

I recently purchased my first kiting related item online..... it came from the US. I purchased it thinking I would not be able to get it here for the same price, then just a few weeks ago whilst in a local kite shop i notice they had the same item almost 20% cheaper..... was somewhat of a lesson learnt.......


However........ when my item arrived this morning inside the package was an A4 sheet with a list of prices ... the heading had
"confidential and first in first served only 1 of each of the items below is available these prices only available over the phone or via email quote your number "

needless to say the prices quoted where far far below what the shops here are quoting

How does a Brand new 2014 8m Switchblade ( Kite Only ) for under $1000 or Brand new 2014 Ozone kite bar for $220 sound... got me thinking anyway

It does seem strange to me that a shop I visited once online can offer me a far bigger discount than one I have been going to to for over 10 years .

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harry potter said..

I recently purchased my first kiting related item online..... it came from the US. I purchased it thinking I would not be able to get it here for the same price, then just a few weeks ago whilst in a local kite shop i notice they had the same item almost 20% cheaper..... was somewhat of a lesson learnt.......


However........ when my item arrived this morning inside the package was an A4 sheet with a list of prices ... the heading had
"confidential and first in first served only 1 of each of the items below is available these prices only available over the phone or via email quote your number "

needless to say the prices quoted where far far below what the shops here are quoting

How does a Brand new 2014 8m Switchblade ( Kite Only ) for under $1000 or Brand new 2014 Ozone kite bar for $220 sound... got me thinking anyway

It does seem strange to me that a shop I visited once online can offer me a far bigger discount than one I have been going to to for over 10 years .

I'm by no means an expert here but I'm thinking a few things (and assuming the retailer still has a shopfront in home country)

Sales volumes: bigger markets in US (and probably to some degree lower cost) means easier to dilute fixed costs as DM pointed out above,

Distributor costs: These significantly affect what pricing your local guy can give as he must make margin on the distributors margin so suspect that there is probably additional benefits there in that the OS distributors (again with bigger markets) are also able to keep prices down through same mechanism and being less exposed in terms of managing stock (i.e. not left holding heaps of last years models etc.)

Internet Market: depends how you view the internet market, if they were to already have lower local pricing then the internet market adds the additional benefit of increasing the market base (i.e. if you can put out pricing that does not discourage your local customers from buying through your shop front, as they've done by constraining the way they advertise it, then the additional sales over the internet can be made a lower cost with the intent of not having to cover your full cost base as they are incremental profit.

There's also import costs and in some cases I'd suspect the internet guy isn't actually holding the stock, just moving it either direct from a distributor (in a locality with low import costs) to the purchaser.

Doesn't matter how you view the local v internet discussion, not having the same cost base does make it much harder for the local guy over the internet guy........

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ActionSportsWA said..

Hey Plummet,

Anything more than about 30% discount and a shop is losing money on a kite due to fixed overheads and costs in running the business. A 15% discount is the shop owner giving away 50% of his or her gross profit which we then pay tax on.

A kite at 50% is a huge loss for a shop and we are trying to recoup some money.

DM

Well i'll push back and say gross profit (gp) Is what you sell the goods for minus the cost price and freight. You should not add a % fixed cost to the product for running costs and call that your break even point. That is not entirely correct.

Your fixed cost does not change regardless of the quantity of product your sell (within reasonable limits). The greater the quantity you sell the lower the fixed cost per item.

What puts food on your table and pays the bills is GP$. eg

Option 1) Buy a product for $60 sell it for $100 yourve made $40 gp. You have made 40% GP.
Option 2) Buy 10 items for $90 sell them for $100. You have made $100gp. But only 10%GP

So....

option 1 looks better as a %, Option 2 puts more $$ in your back pocket and pays more of your fixed cost.
But if you run your model needing cover a fixed % on every item you sell you would chose not to sell that item because you would be "loosing money" at a 10% margin.

In short 10% of something is better than 50% of nothing.

I'm not saying sell all your products at low margins. Sell them for as much as you can! but don't walk away from a sale because of the gp%. If it puts $ in your pocket and you would loose the deal otherwise then do it!.

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Plummet said...
Your fixed cost does not change regardless of the quantity of product your sell (within reasonable limits).

Insurance premiums go up without a claim. Workchoice cover goes up without a claim. Wages go up without an increase in productivity. Leasing a premises goes up on renewals. Council rates go up annually. Finance rates change with the currency rates.

All these things effect the price ur gear, regardless of group buys or bulk orders.

Pay shid get shid imo. Support locals, buy when uv got the cash and keep stoked

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gcdave said..

Plummet said...
Your fixed cost does not change regardless of the quantity of product your sell (within reasonable limits).

Insurance premiums go up without a claim. Workchoice cover goes up without a claim. Wages go up without an increase in productivity. Leasing a premises goes up on renewals. Council rates go up annually. Finance rates change with the currency rates.

All these things effect the price ur gear, regardless of group buys or bulk orders.

Pay shid get shid imo. Support locals, buy when uv got the cash and keep stoked

Oh yes of course fixed cost stuff goes up. But what I was trying to elude to is that you should not put a blanket market up % across all items then refuse to sell stuff bellow a particular % because you are "loosing money"

What looses you money is not selling a product that you could have otherwise sold at a lower margin.

Don't sell stuff below actual cost. That is stupid. But not selling something to protect your margin % is equally as stupid.

Can we all learn the difference between loose and lose, loosing and losing please.

And here and hear
to and too
your and you're

If you are in the market for new kite and it looks like a great price just go and buy it. It will always be cheaper somewhere else next week. If you wait until next week for a cheaper price, it will be cheaper somewhere else another week later. But you've just lost another week to a ****ty old kite when you could have had a brand new one weeks ago.

Once you buy a new kite stop looking at the prices after that and you will remain happy with what you paid for yours.

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Plummet said..

ActionSportsWA said..

Hey Plummet,

Anything more than about 30% discount and a shop is losing money on a kite due to fixed overheads and costs in running the business. A 15% discount is the shop owner giving away 50% of his or her gross profit which we then pay tax on.

A kite at 50% is a huge loss for a shop and we are trying to recoup some money.

DM

Well i'll push back and say gross profit (gp) Is what you sell the goods for minus the cost price and freight. You should not add a % fixed cost to the product for running costs and call that your break even point. That is not entirely correct.



What puts food on your table and pays the bills is GP$. eg

Option 1) Buy a product for $60 sell it for $100 yourve made $40 gp. You have made 40% GP.
Option 2) Buy 10 items for $90 sell them for $100. You have made $100gp. But only 10%GP

repectfully mate i would suggest that most retailers are interested in net income!
gross profit can mean didly squat if your operating expenses are too high

just by the way 40% on $60 is $24 ie $84 total (before GST )
stick with kiting
cheers

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Prawnhead said..

Plummet said..

ActionSportsWA said..

Hey Plummet,

Anything more than about 30% discount and a shop is losing money on a kite due to fixed overheads and costs in running the business. A 15% discount is the shop owner giving away 50% of his or her gross profit which we then pay tax on.

A kite at 50% is a huge loss for a shop and we are trying to recoup some money.

DM

Well i'll push back and say gross profit (gp) Is what you sell the goods for minus the cost price and freight. You should not add a % fixed cost to the product for running costs and call that your break even point. That is not entirely correct.



What puts food on your table and pays the bills is GP$. eg

Option 1) Buy a product for $60 sell it for $100 yourve made $40 gp. You have made 40% GP.
Option 2) Buy 10 items for $90 sell them for $100. You have made $100gp. But only 10%GP

repectfully mate i would suggest that most retailers are interested in net income!
gross profit can mean didly squat if your operating expenses are too high

just by the way 40% on $60 is $24 ie $84 total (before GST )
stick with kiting
cheers

hehehe..... 40% markup is $24...
Gross profit % is worked out from the difference between cost and sell price.
Of course they are interested in net profit. The way to get the most net profit is to make every sales you possibly can. That is what I am trying to say.

Sadly what I see from a lot of kite retailers is that they are addicted kiters but they are definitely not business people or sales people. I see them missing opportunities because of their lack of sales and business skills.

Depends where you are - mark up here can be over 100% of US RRP so unless the manufacturers are gouging their dealers...

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Kamikuza said..

Depends where you are - mark up here can be over 100% of US RRP so unless the manufacturers are gouging their dealers...

Unfortunately australia is a relatively small market, far from the main centres meaning transportation costs per volume of units are high when ordering from os. If you want wholesale prices go direct to factories in Thailand/China and pick up a real bargain.

I'm a huge fan of online shopping; we buy a lot of stuff over the web.

However, in my search for a board recently I contacted 2 local shops. Both offered me multiple boards to try (leave your licence and sign a form and take the board for the afternoon - not 5 mins, see you in couple hours). One of these shops is where I had my lessons and have purchased before, they said upfront no questions asked "20% off RRP for you as a regular". I tried a couple different boards, and purchased for not much more than 2nd hand prices and significantly less then online.

Add to this that I found (while trialing) I didn't like the 2014 straps/pads on my prefered board, and actually prefered the 2013. So I ended up with a new 2014 board with new 2013 straps/pads.

Now I'm after a dedicated light wind board, with one email, my prefered option has been quoted at more than 10% below what they are listed for online in the US (where they make it) before shipping. And of course the email stated that I'm welcome to "try before I buy" to "ensure I like it".

So, I agree with the statements above. Create a good relationship with your local. I can't try anything from an online shop, and what my trials showed was the amazing difference that shape makes to a board of the same size, and how IMO one manufacturer has cocked up the new straps which I would have been stuck with.

Buy for $60, sell for $100, you have made 66.7% gross profit on your buy price.

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goog64 said..

Buy for $60, sell for $100, you have made 66.7% gross profit on your buy price.

Well done young man, now where is my good work stamp.

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eppo said..

goog64 said..

Buy for $60, sell for $100, you have made 66.7% gross profit on your buy price.

Well done young man, now where is my good work stamp.

Nah that's an F for fail! Go straight to jail and do not collect $200.

Its a 66.7% mark up.
40% gross profit!


Now thats enough about percentages from me. Its not a maths forum so lets move on.