A buddy of mine is getting married in Costa Rica next year and the groomsmen want to buy him a longboard as a present.

I have been in touch with a few shapers(Robert August...etc) all prices coming back are $650ish.

Then why do we pay $1000 plus here??

Any answers??

650ish wow that's cheap

are they chinese pop outs ?

No they are not, my apologies a 9 footer costs $800

Im not bagging Aussie shapers by any means it was just a query.

Cost a lot more to run a business in Australia. Wages, rent and materials all cost more to name a few. Perhaps even volume, lot more potential customers in the states so can sell at a lower margin.
Maybe we need get rid of the minimum wage and open the borders, could lower the price of your boards? If our businesses have to compete on the global stage, how about our workers?
By the way alot of Robert August boards are made in China, particularly if you are getting one from somewhere other than California.

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P co said...
Cost a lot more to run a business in Australia. Wages, rent and materials all cost more to name a few. Perhaps even volume, lot more potential customers in the states so can sell at a lower margin.
Maybe we need get rid of the minimum wage and open the borders, could lower the price of your boards? If our businesses have to compete on the global stage, how about our workers?
By the way alot of Robert August boards are made in China, particularly if you are getting one from somewhere other than California.

Great Post

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McHenry said...

A buddy of mine is getting married in Costa Rica next year and the groomsmen want to hire him a shop assistant as a present.

I have been in touch with a few shapers(Robert August...etc) all prices coming back are $650ish.

Then why do we pay $1000 plus here??

Any answers??

Might make it a bit clearer.
Substitute shop assistant for any business imput.

why is the minimum wage in the states for a adult waiter $6 compared to the minimum wage in oz of $17.50......P.co summed up beautifully. i think some of our shapers do not charge enough

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P co said...
Cost a lot more to run a business in Australia. Wages, rent and materials all cost more to name a few. Perhaps even volume, lot more potential customers in the states so can sell at a lower margin.
Maybe we need get rid of the minimum wage and open the borders, could lower the price of your boards? If our businesses have to compete on the global stage, how about our workers?
By the way alot of Robert August boards are made in China, particularly if you are getting one from somewhere other than California.

throw in all the OH&S and environmental costs,public liability, 9 % super and holiday pay for any employees ,workers comp, sickies , non payers and minor ****-ups!
My hat is off to you Pco i don't know how anyone makes a living at surfboards nowdays

yes this is a tricky question.....and its been well answered here. I once posted a similar question about fins and CMC gave a fine reason why - will try and find it later....sadly with a strong dollar we are struggling to get a reasonable retail price for fins - when the AUD backs off its only going to get worse....but when it does the local producers will become more competitive all of a sudden. Its a well known fact that Australia is a very expensive place to do business......its also a well known fact that Aussies have been happy to pay overs for stuff for a long time and that this is often exploited if it can be (just ask adobe and apple).

I have made a board and have another in production at the moment.....I think that the prices that people charge for such hand-craftmanship are probably pretty fair if not on the cheap side.

How much does a builder make these days? - Approx $50 hr ard my parts including their tools and IP. A surfboard factory has lots of overheads as previously mentioned so by the time you add these on as well you have to be realistic that the shaper needs some form of return to stay in business - otherwise he /she is better off doing something else. Would you get out of bed for $50 an hour before paying all of your overheads, tools and super?

I think that we need to be careful about this industry....the barriers to entry are low but to build a sustainable business is very tricky. The bigger names have even attempted to join forces and still failed (eg BASE).....its a really tricky business that on surface does not appear to be scalable unless you go MASSIVE (eg cobra) and relocate. The old traditional models seem to be back in favour from what I have seen but I would also say that I am just an observer of the surfboard making industry not a participant.

Try and shape one and then see if you can complain about the price with a straight face....where else can you get a hand made peice of anything for the price?

Interesting thread. I was talking to someone the other day and he said $850 is a lot to pay for a board. (short board). I kinda thought that was the standard I am aware there are cheaper brands coming in from overseas that get sold for $500. So what is the average price to pay these days

My last few boards were a Superfish that i think was about $825 ish with fins
Then my Burton that was custom and frieghted around $945 with fins
and my Sweet Potato that was second hand for $475..But i think they are about $900 new plus fins..

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jbshack said...
Interesting thread. I was talking to someone the other day and he said $850 is a lot to pay for a board. (short board). I kinda thought that was the standard I am aware there are cheaper brands coming in from overseas that get sold for $500. So what is the average price to pay these days

My last few boards were a Superfish that i think was about $825 ish with fins
Then my Burton that was custom and frieghted around $945 with fins
and my Sweet Potato that was second hand for $475..But i think they are about $900 new plus fins..

My last 3 merricks were $750 sans fins...all customs...A blank costs you between $80 and $200 bucks depending on how many you order length and all that rubbish. Glass and resin will set you back $50 to $100. Consumables are probaly $10-$20 a board. Fin plugs and leash plugs are about $10. So all up it can cost between $150 - $250 just for materials, obviosly large scale production will reduce prices a fair bit but your still not paying a whole lot for the shapers overheads and experience...I used to complain about how much they cost now I wonder how they can do it so cheap....

Don't get me started on this topic. Please.

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CMC said...
Don't get me started on this topic. Please.

why cmc...i would like to hear it.. i was always thought boards were a rip off until i have seen a few being made and running my own business with overheads etc etc etc. so a good rant from you would be welcome

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CMC said...
Don't get me started on this topic. Please.

You mean the "knights" or "queensland"?

I feel like some people think I may be whinging about it. Im not it was just a questions about what everyone on the breeze thought of it. I know things are expensive in Australia, I grew up in Canada and I see the price difference on everything. Do I think its bad...no. I much would prefer to make more and spend more because I can cut back on my spending its a whole lot more difficult to make more money.

^^^didnt think you were whinging...only pommies like mac do that

what ever the price its all good fun surfing wouldn't be without a board

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chrispychru said...
^^^didnt think you were whinging...only pommies like mac do that

Low buggers

Just been thinking about this topic on the long drive home (in the rain again) and its amazing how much value I get out of my boards.....eg my sweet potato was $500 second hand and I have surfed that thing non-stop for almost 2 yrs....must have cost me just a few dollars a surf now which is cheaper than a bike tube! Other boards I have not been so lucky with but on the whole my boards last me well and I always feel like I get my monies worth. The last custom I got was the most expensive board I have ever brought (my Burton) and it freaked me out when I transferred the dosh over.....however that thing has paid for itself in spades. When I used to live in Manly a normal Friday night out would cost me $100 plus and Sunday arvo's a bit as well.....hard to think that surfboards are over-priced / expensive when I have pissed so much against the wall over the years

Now do not get me started on wetsuits.......I find those things the best value for money after leg ropes......my O'Neill pschyo last me 4 winters!!!! Bargain at twice the price!!

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chrispychru said...
why is the minimum wage in the states for a adult waiter $6 compared to the minimum wage in oz of $17.50......P.co summed up beautifully. i think some of our shapers do not charge enough

This is a great topic, and CMC hasn't even started!

Chrispy, most things are cheaper in the USofA, so that helps hold down their wage rates. They have cheaper houses*, and cheaper interest rates* (*on average - by a chunk), plus cheaper fuel, and theirs cars are about 1/3 cheaper as a rule. Don't ask my why, they just are! Modern exchange rates!

Food and beverage is also quite cheap. Beer is very cheap with minimal excise (tax). This helps keep restaurant prices down... and all indicators lead towards cheaper wages because the general cost living is reduced.

So an American produced Longboard is probably on par with our Aussie produced Longboards, in terms of average wage, etc.

I reckon average wages in each country rough match the average new Longboard differential.... Law of Averages at work...

Vice versa to what CMC said, don't get me started on averages.

^^^^you missed the point i was making by being all technical and stuff i was just trying to show the difference in coin for the same things. sometimes the simple things in life are often the best grom man

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Simondo said...
and theirs cars are about 1/3 cheaper as a rule. Don't ask my why, they just are!

Subsidises and tariffs are the simple reasons on this one Simondo.....a topic best left for Heavy Weather

Flick the coin to an Oz shaper to keep them in Oz .... at least here you still have the chance of getting your Porn hand crafted and that will become priceless in time

The next big challenge is finding the next generation of Oz shapers willing to do the yards - it's a big one


Oh and McH just on ya mate ..... get a GODDARD up him

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thePup said...
The next big challenge is finding the next generation of Oz shapers willing to do the yards - it's a big one

You have hit the nail right on the head there Pup.

It's kind of off topic in a way but here goes.

It's all been said here about wages, rents, insurance etc. The other factor is materials. Most cloths, resins etc are from the US. Even the 'Aussie made' ones the raw chemicals came from the US, Europe or Korea. Even the foam chemicals come from these countries. From the ground up once you add shipping to this remote part of the world, Aussie wages with the distributor or manufacturer the materials are more expensive as well.

BUT

Anyone with a calculator will tell you that to make a profit you can either reduce your costs or increase what you sell it for.

Enter the problem. Many Aussie manufacturers will tell you that 'Chinese Popouts' have destroyed their margins. Or cheap boards from Asia or whatever. In a meeting for the Australian Surf Craft Industry Association to which I was making a presention my head was nearly removed from my body for suggesting otherwise.

If price was the motivating factor I ask how it might be possible that a surfboard made in Thailand out of all kinds of Potatoes might be chasing #1 position with prices well above local pricing or how a carbon fibre railed Epoxy shortboard could be constantly sold out for $920 a pop??

Indeed, how?

I'll leave that one with you for now, let you discuss and come back later on.

Come on you lazy ba$tard$ I wanted to start some debate here. Not even a red thumb......

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CMC said...
It's kind of off topic in a way but here goes.

It's all been said here about wages, rents, insurance etc. The other factor is materials. Most cloths, resins etc are from the US. Even the 'Aussie made' ones the raw chemicals came from the US, Europe or Korea. Even the foam chemicals come from these countries. From the ground up once you add shipping to this remote part of the world, Aussie wages with the distributor or manufacturer the materials are more expensive as well.

BUT

Anyone with a calculator will tell you that to make a profit you can either reduce your costs or increase what you sell it for.

Enter the problem. Many Aussie manufacturers will tell you that 'Chinese Popouts' have destroyed their margins. Or cheap boards from Asia or whatever. In a meeting for the Australian Surf Craft Industry Association to which I was making a presention my head was nearly removed from my body for suggesting otherwise.

If price was the motivating factor I ask how it might be possible that a surfboard made in Thailand out of all kinds of Potatoes might be chasing #1 position with prices well above local pricing or how a carbon fibre railed Epoxy shortboard could be constantly sold out for $920 a pop??

Indeed, how?

I'll leave that one with you for now, let you discuss and come back later on.

My first board was a popout, but it was not particularly cheap. To be honest, I knew nothing about boards (and I mean nothing) so I liked the idea I was buying had a brand name and was a model that was selling well, in case I wanted to sell it later. Different things motivate first time buyers, price was one thing but not everything.

Good point kadi.

The boards I made examples of are high performance shortboards though, even Ted rides one.

Why would shapers refuse to admit that these boards made in Thailand would sell so many at such a high price? How could it be?