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Is Wilson going to kill the retailers ?

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Created by jarvo > 9 months ago, 2 Dec 2010
newo
WA, 250 posts
1 Feb 2011 9:42AM
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How many bottleshops and fuel stations do you own Kitepower?

bjw
QLD, 3687 posts
1 Feb 2011 12:01PM
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Kitepower Australia said...

bjw said...

Are you hinting that Kitepower is the Woolworths of kite shops?




Are you actually a complete idiot?



And the answer is "YES I AM"

bjw
QLD, 3687 posts
1 Feb 2011 12:02PM
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newo said...

How many bottleshops and fuel stations do you own Kitepower?


Did you know they own most Parking Meters at the beaches now?

BigBlock
53 posts
1 Feb 2011 10:53AM
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Kitepower Australia said...

Have a think about the bigger picture.

there are too many models and brands.


There are to many kites on the market, tru. This is because to many washed up hasbeens are trying to cash in on what remains of there image. Hoping they can get a small % of the market. Ben Wilson is no exception.

The way we are going in another 10 years there will be 1000's of companies selling directly on the net, they will have to. Kitepower will have to develop and sell kites to keep up, which is no big deal as BW has already proven.

poor relative
WA, 9106 posts
1 Feb 2011 10:59AM
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Personally i think that BW should have supported the Aussie retailers after all didn't they support him to start off with. He would have probably got more kites out there and earned more supporters in the longer term.

Undercutting the local shop guy on the corner who has been flogging away is fkn poor form and won't win BW many mates IMO.

phx
SA, 20 posts
1 Feb 2011 2:00PM
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Kite retailers add value to your kite by giving advice and demos.

Theres always going to be tightarses that scam free advice from the retailers and then buy online - ultimately a problem that can be solved by business models:

When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.

Travel had the same issue - its why your travel agent can often sell you the same **** as you can buy online while still making a buck - the industry wants people to have a good holiday so they buy more.

harry potter
VIC, 2777 posts
1 Feb 2011 4:55PM
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I am yet to see hoardes of BWS kites at my local ......so I think the retailers are safe for now.

Besides kiting has become very image driven I cant see BWS kites making much of an impact unless they team up with a well known wakestyle rider and develop wakestyle kites as well......then and only then could they begin to make an impact on the local retailer.

This is what all the Sub 25 yr olds want...... flouro look at me wakestyle setups

Maybe over in WA where there is more of a surf kite culture he is already having an impact.

getfunky
WA, 4485 posts
1 Feb 2011 3:20PM
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harry potter said...

I am yet to see hoardes of BWS kites at my local ......




Try looking at water level. They take kn aaaaggeesss to relaunch so you are bound to see one floating past eventually.

Bigwavedave
QLD, 2057 posts
1 Feb 2011 7:43PM
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poor relative said...

Personally i think that BW should have supported the Aussie retailers after all didn't they support him to start off with. He would have probably got more kites out there and earned more supporters in the longer term.

Undercutting the local shop guy on the corner who has been flogging away is fkn poor form and won't win BW many mates IMO.


BWS would have been in a difficult position. Adding another brand to the fold with no history of sales is a hard task. IMO not many retailers would have been prepared to support another new brand. By going internet direct with an initial program with 'test team' riders has created a brand name and a demand that has ensured BWS has hit the ground running.

Who knows where it will go? What I do know is that in a few short months, BWS has a recognisable brand name with a product that is popular and good quality.

Puts them in a very marketable position for the future!

Saffer
VIC, 4501 posts
2 Feb 2011 1:12AM
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Just my 2 cents from a random kiter:

1. Price won't kill the market. There are already other local brands just as competitively priced and if you're really price sensitive you could easily pick up a brand when their newer models are coming out.
2. I don't think BWS will damage the market. Everyone thought Best would do that with your direct approach, but the reality is that a lot of kiters want to try before they buy. There will be limited options for testing kites with a direct marketing model.
3. Kiters like to kite what they see other people are using. Just watch the brandaholics that buy the latest North/Naish/Cabrinha without bothering to test them or any other model for that matter.
4. Kiters support local shops if they get the aftersales service they like. Direct models make it hard to get repairs/warranty without a local agent.
5. I think BWS's approach is similar to Best. Go direct initially and try build a user base and then move to shops once they have a presence. Its been tried and has worked before. Whether it works now is a different question.

In short, no, he won't kill the retailers. Will he go under? Who knows. There are plenty of startups that succeed and plenty of established brands battling so who knows where the market will be in 5 years time.

gavo
WA, 127 posts
1 Feb 2011 10:19PM
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getfunky said...

harry potter said...

I am yet to see hoardes of BWS kites at my local ......




Try looking at water level. They take kn aaaaggeesss to relaunch so you are bound to see one floating past eventually.


oohh you just jealous Ian..you know you want one They are sick kites..I love them

BigBlock
53 posts
1 Feb 2011 10:33PM
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BWS sales to date, 248kites world wide. lol

top 5 brands, 30,000+ per year!

Mr float
NSW, 3452 posts
2 Feb 2011 9:09AM
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BigBlock said...

BWS sales to date, 248kites world wide. lol

top 5 brands, 30,000+ per year!


248 .Not bad for a retailer .I would be pretty happy with that

hitch_hiker
WA, 492 posts
2 Feb 2011 8:57AM
Thumbs Up

BigBlock said...

BWS sales to date, 248kites world wide. lol

top 5 brands, 30,000+ per year!


Doubt there would be 150,000 new kiters each year (30,000 x 5 top brands), so these kites must be 'quality' haha, either that or they are bought by douche bags with to much coin whose only really claim is that they buy a quiver of top 5 brand kites each year. To all the Aussie brand kites: NEW, Griffin, & BWS () much respect!!

Bigwavedave
QLD, 2057 posts
2 Feb 2011 11:15AM
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When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.


It is illegal in this country for wholesalers to enforce retail prices or attempt to control pricing in any way. (Trade Practices Act)

They provide a recommended retail price list but each retailer can sell for whatever price they like.

The ACCC looks very closely at manufacturers, wholesalers and retailers who try to restrict competition by 'enforcing' RRP's.

Mr float
NSW, 3452 posts
2 Feb 2011 12:30PM
Thumbs Up

Bigwavedave said...

When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.


It is illegal in this country for wholesalers to enforce retail prices or attempt to control pricing in any way. (Trade Practices Act)

They provide a recommended retail price list but each retailer can sell for whatever price they like.

The ACCC looks very closely at manufacturers, wholesalers and retailers who try to restrict competition by 'enforcing' RRP's.


Accc = toothless tiger .

BigBlock
53 posts
2 Feb 2011 9:42AM
Thumbs Up

hitch_hiker said...

BigBlock said...

BWS sales to date, 248kites world wide. lol

top 5 brands, 30,000+ per year!


Doubt there would be 150,000 new kiters each year (30,000 x 5 top brands), so these kites must be 'quality' haha, either that or they are bought by douches bags with to much coin whose only really claim is that they buy a quiver of top 5 brand kites each year. To all the Aussie brand kites: NEW, Griffin, & BWS () much respect!!



These are quality companies including North, cabrinha, fone etc.

I didn't claim there were 150,000 new kiters starting each year?. My guess is that most kiters update there gear on a regular basis.

If you look back 5 years ago they were pumping out around 120,000 kites a year between all of the manufacturers, since then kiteboarding has grown probably 10 times. So the total no of kites would be huge. Companies like cabrinha make a lot more than 30,000 kites a year. There are a lot of people on this forum that cant see the big picture and can't realise that Australia only holds a couple of percent of the world wide kiteboarding market.

myusernam
QLD, 6155 posts
2 Feb 2011 11:57AM
Thumbs Up

BigBlock said...

hitch_hiker said...

BigBlock said...

BWS sales to date, 248kites world wide. lol

top 5 brands, 30,000+ per year!


Doubt there would be 150,000 new kiters each year (30,000 x 5 top brands), so these kites must be 'quality' haha, either that or they are bought by douches bags with to much coin whose only really claim is that they buy a quiver of top 5 brand kites each year. To all the Aussie brand kites: NEW, Griffin, & BWS () much respect!!



These are quality companies including North, cabrinha, fone etc.

I didn't claim there were 150,000 new kiters starting each year?. My guess is that most kiters update there gear on a regular basis.

If you look back 5 years ago they were pumping out around 120,000 kites a year between all of the manufacturers, since then kiteboarding has grown probably 10 times. So the total no of kites would be huge. Companies like cabrinha make a lot more than 30,000 kites a year. There are a lot of people on this forum that cant see the big picture and can't realise that Australia only holds a couple of percent of the world wide kiteboarding market.


dont forget the power of marketing and advertising. Maccas get sold not because of the product but because of the advertising

coastflyer
SA, 601 posts
2 Feb 2011 12:37PM
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Kites and lines/bars can be made in China for a cost of approx $250USD, this is for a 12m. Several of these kites are in use on the South coast of Adelaide and I have had a close look at them, and to be honest, the quality is very good and they look exactly like a late model Switchblade. One owner told me that he landed the complete kite package for just over $500AUD. That said, I prefer to support my local shop, and most of my gear is all late model North. If BW is selling his kites for $1100, good on him, as he still will be making some profit. I personally would love to try one of his kites, but that may be very difficult, with no one here to demo it.
Here is a link to just ONE generic kite manufacturer in China.

http://www.chinese-kite.net/product.asp?MID=0&SID=1

Dawso said...

bjw said...

Cheaper kites cannot kill the industry.
Windsurfing killed itself when it got expensive as hell.


Windsurfing? ........ Is that that ancient sport my grandfather told me about?


grrumpysam
QLD, 26 posts
2 Feb 2011 12:10PM
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YAAAAWWWNNN!!!!
No matter what the topics start out to be
They always end up a mispeltd pissing contest
If u people are so bored between seshuns
Why not build a bridge and bungee jump off it!!!
Just remember to forget to tie the bungee on!!
Dumasses!!!

Bigwavedave
QLD, 2057 posts
2 Feb 2011 3:08PM
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Mr float said...

Bigwavedave said...

When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.


It is illegal in this country for wholesalers to enforce retail prices or attempt to control pricing in any way. (Trade Practices Act)

They provide a recommended retail price list but each retailer can sell for whatever price they like.

The ACCC looks very closely at manufacturers, wholesalers and retailers who try to restrict competition by 'enforcing' RRP's.


Accc = toothless tiger .


Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.

kyteryder
NSW, 692 posts
2 Feb 2011 4:19PM
Thumbs Up

Bigwavedave said...

Mr float said...

Bigwavedave said...

When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.


It is illegal in this country for wholesalers to enforce retail prices or attempt to control pricing in any way. (Trade Practices Act)

They provide a recommended retail price list but each retailer can sell for whatever price they like.

The ACCC looks very closely at manufacturers, wholesalers and retailers who try to restrict competition by 'enforcing' RRP's.


Accc = toothless tiger .


Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.


A question to Big Wave Dave. If this is the case, how does Apple control the retail prices of their products in their stores? Ipad prices seem to be controlled by Apple through all various resellers.
Maybe i am incorrect, but when i bought in December, they were the same price in all outlets, and when i tried to get a discount through a reseller, i was told they were not able to offer discounts on Official Apple prices.

2 Feb 2011 4:47PM
Thumbs Up

Bigwavedave said...



Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.


ACCC=Toothless Tiger manipulated by big business and big money. It was set up for political reasons.
Wholesalers can stop supply to a retailer for any reason, in fact they don't have to give one to the retailer and they can just tell ACCC they did not have enough stock or some other crap.
Retailers do not have a right of supply, I got this direct from an ACCC staff person.

Pricing, well based on the above then there are means to enforce pricing as Kiteryder clearly points out with his Apple example. JB HiFi don't discount Apple products, unlike most other things they sell.





Saffer
VIC, 4501 posts
2 Feb 2011 5:02PM
Thumbs Up

Kitepower Australia said...

Bigwavedave said...



Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.


ACCC=Toothless Tiger manipulated by big business and big money. It was set up for political reasons.
Wholesalers can stop supply to a retailer for any reason, in fact they don't have to give one to the retailer and they can just tell ACCC they did not have enough stock or some other crap.
Retailers do not have a right of supply, I got this direct from an ACCC staff person.

Pricing, well based on the above then there are means to enforce pricing as Kiteryder clearly points out with his Apple example. JB HiFi don't discount Apple products, unlike most other things they sell.








JB Hifi do 10% off regularly on Apple goods, as do many other suppliers.

Mr float
NSW, 3452 posts
2 Feb 2011 5:10PM
Thumbs Up

Bigwavedave said...

Mr float said...

Bigwavedave said...

When the industry gets more sophisticated the problem will arise that people buy gear without the advice and then ditch the sport. Manufacturers will have to give retailers more of a break to support the sport - possibly by giving physical retailers discount gear, or enforcing retail prices, etc.


It is illegal in this country for wholesalers to enforce retail prices or attempt to control pricing in any way. (Trade Practices Act)

They provide a recommended retail price list but each retailer can sell for whatever price they like.

The ACCC looks very closely at manufacturers, wholesalers and retailers who try to restrict competition by 'enforcing' RRP's.


Accc = toothless tiger .


Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.


Sorry Dave but i speak from experience here .the ACCC were about as useful as a boob job on my granny particularly when it comes to big business vs small fry. what about 2 large grocery/booze,pubs,pokies,fuel retailers in Aust they are proven guilty of collusion and predatory trading and they get a slap on the wrist and are straight back too it.How about fuel prices at the moment ? The price per barrel drops and retail goes the other way big time and no-one competes against it and no one says or does anything about it except for a page 4 bleat in the papers yesterday.

Mr float
NSW, 3452 posts
2 Feb 2011 5:21PM
Thumbs Up

Saffer said...

Kitepower Australia said...

Bigwavedave said...



Believe it or not the ACCC is one of the most powerful bodies in Aus. When they decide to investigate you there is nothing they can't or won't do.

If a retailer decides to sell a something at cost and the wholesaler tries to control the prices or block supply, one phone call to ACCC gets them off your back.

As a sales manager for a national company I had a card in my wallet with the '10 commandments' of the ACCC. If I was in breach of one or more of those I was liable to a huge fine and my employer was liable X 10.

One of those 10 was trying to control retail prices, or refusing supply to a customer because they were cutting prices. The TPA is one of the most enforced acts.

If someone starts a price war, suppliers cannot get involved.


ACCC=Toothless Tiger manipulated by big business and big money. It was set up for political reasons.
Wholesalers can stop supply to a retailer for any reason, in fact they don't have to give one to the retailer and they can just tell ACCC they did not have enough stock or some other crap.
Retailers do not have a right of supply, I got this direct from an ACCC staff person.

Pricing, well based on the above then there are means to enforce pricing as Kiteryder clearly points out with his Apple example. JB HiFi don't discount Apple products, unlike most other things they sell.








JB Hifi do 10% off regularly on Apple goods, as do many other suppliers.


woopy chook .Lets have a party next time the apple sale comes around

Bigwavedave
QLD, 2057 posts
2 Feb 2011 4:23PM
Thumbs Up

The legislation is there.

ACCC only enforce it when they receive complaints.

Apple are walking a fine line. If retailers don't discount because they are asked not to, it's called collusion and there's hefty fines. It will only take one retailer to start the discounts.

When Allan Fells (sic) was in charge of ACCC he reamed many big companies for price fixing and collusion.

When a customer is big enough, no supplier will stop supply based on selling prices. Wesfarmers and Woolworths are the two hugest examples. No hardware supplier says no to Bunnings even if they are bastardising their brand by selling it at or below cost.

In the kiting industry, most shops stick to the wholesaler's RRP because thats the price they need to make a profit on. However, I mentioned the TPA because someone said the kite manufacturers need to control pricing.


Any kite shop can sell their product at whatever price they choose to. Look at the end of season specials.

Funny how these threads always end up with kiters thinking the shops are ripping them off. Funny how kiters won't drop their wages to benefit their customers/bosses yet they expect the shops to throw away money just for one sale! And we try and screw the retailer for our once every two year purchase of a new kite !!

We are a unique insular community!!

getfunky
WA, 4485 posts
2 Feb 2011 2:37PM
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gavo said...

getfunky said...

harry potter said...

I am yet to see hoardes of BWS kites at my local ......




Try looking at water level. They take kn aaaaggeesss to relaunch so you are bound to see one floating past eventually.


oohh you just jealous Ian..you know you want one They are sick kites..I love them



Actually i was curious to fly one but I wasn't takin the pizz about relaunch. Every time i have seen one hit the water it has taken a LONG time to get up again. That's a fail for my selection criteria. Er.. not that i ever drop my kite.. right.

Wonder if SS is pizzed about 'borrowing' the SS style stripes BTW?

kyteryder
NSW, 692 posts
2 Feb 2011 5:52PM
Thumbs Up

Saw my first BWS yesterday, and funny you should talk about relaunch. - A guy at our Local mention yesterday relaunch was very hard compared to his fuel.

KnutH
VIC, 427 posts
2 Feb 2011 6:03PM
Thumbs Up

Isn't especially a surf kite meant to have very easy relaunch?



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"Is Wilson going to kill the retailers ?" started by jarvo