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Mark _australia said..
Legless I am not having a go at retailers. It is the whole system, the biggest margin is the importers / distributors who have exclusitivity in many cases.
Like examples in a thread here a couple of years ago about an australian product available WAY cheaper online from USA - inclusing postage - than you could buy it in Oz.
Yes small market size etc but I think distributors bung obscene markup on many items.
You will get no argument form me that running a windsurf shop must be bloody hard and have a lot of overheads but I think u need to blame the middle man cos we all know you are not making $600 on a boom.
My point was that you can't blame high prices on retailers having to hold stock like FBRoy asserted. I was countering that as I think the causes lie elsewhere, I was not having a crack at retailers.
Mark lets go through the facts.
There are hardly any windsurfing importers in Australia anymore and the few that are left often do not hold windsurfing stock. Most shops are importing directly or via a importing group. Like shops Imorters find it hard to make money from windsurfing and have closed or moved to other watersports.
Some importer's refuse to sell windsurfing gear to shops unless they sell SUP's!
There are many offical /unofficial exclusitivity agreement preventing windsurfing shops from certian brands.
Now lets look at this dodge boom:
It is a boom that retails for $500 not $1000 and at $500 it is a hard sell.
A boom that retails for $1000 will cost a shop more than double what the Dodge boom costs.
You need to buy 20 to get that price so you are going to have to transfer to taiwan US$4000 Aus around $4400.00
freight from Taiwan is expensive you are looking at $500 plus for a box of 5 booms you might say well it is cheaper to send by sea unfortunately not for 20 booms. It is only cheaper for very large shipments the landing costs in Australia make small shipments by sea not viable also the time it takes to get to australia by sea . People might say you can get cheaper rates if you are willing to pick up from the airport....big mistake when you get to the airport you will need to pay additional handling fees and employ a broker to clear the shipment through customs it is almost imposible to do it yourself customs no longer deal direct with the public for freight. So any saving you think you will make will be gone.
The shipment is going to be over $1000 so it will attract import duty of 5% GST of 10% and customs fees so the booms are now costing $6500-$7000
Now you have to sell the booms. You need a shop (rent/morgage/or dead asset), you need insurance, advertising, you need a van, you need other stock as it is not a shop if it is selling only booms, staff.
Maybe you can sell on ebay but ebay and paypal fees are stupidly high.
If the customer is not able to get to the shop the cost of freighting single booms around Australia is high making interstate sales even harder.
What happens if the boom breaks.....dodge would likely be willing to replace it but the cost of freight for a single boom from Taiwan is stupid so you would need to buy another 4 to make it worth while but then you are stuck with 4 more booms you heed to sell and selling them has got much harder now as customers know one has broken even if it broken in a 30 plus knot whipe out caused by hitting something people still think it is the booms fault.
So by the time you have taken everyting into account there is no money to be made.....I know I have imported booms from dodge and i can't justify doing so anymore because there is no money to be made.
By the way for those planning to order the booms get the 32 grip the boom arms are much stronger than the 29 grip I have been catapalted into mine at 30 knots and they survived and many others have had big wipe outs with them ( last weekend there was a big wipe out from hitting a carp harness hook was bent straight the clew of the sail was ripped out but no damage to the dodge boom). I have yet to come across a 32 grip boom arms breaking. The weak point on the boom is the plastic mast clamp which can break with a major wipeout. Some have changed their's for a Gun Sails one as it is a perfect fit and much stronger but a new one cost $60, There are also a few other minor issues that you are less likely to get with a $1000 boom.
I am lucky I don't need to make money to keep the shop going. It would be nice to make money but at the moment I am just trying not to lose money.
Unfortunatly for Australian windsurfers I have seen the prices for 2015 gear all go up particularly sails I do not see this trend changing.