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Debunking the kiteboard growth myth
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bob

Since 09 Mar 2007
139 Posts
Madison, Wi
Stoked



PostSat Mar 28, 09 7:47 pm     Reply with quote

really interesting thread.

kites:
*back in 2003, the largest Slingshot kite retailed for $1599.00. Fuel 19m.
*in 2008, the largest Slingshot kite retailed for $1649.00. T3 17m.
*2008 Rev 15m retailed for $1599.00.

Boards:
2003 SX series retailed for $699.00.
2008 SX series retailed for $649.00.

it actually looks like efficiencies have actually kept prices the same for years especially when comparing to inflation, etc.

I did not include 2009 prices due to the ridiculous worldwide increase in oil, etc that put all suppliers into major increase mode.

well done slingshot for keeping prices level for years.

bob

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Speedo

Since 07 May 2007
264 Posts

Obsessed



PostSat Mar 28, 09 9:11 pm    Re: That's just, like, your opinion man Reply with quote

NateDogg wrote:
"If I were in this for the money, I would have left a long time ago"

I think if you asked, you'd find that most in the industry would agree with this statement. Nobody is ballin out of control, driving a Lambo and running a tight crew of string bikini
Walter Sobchak: Those rich fucks! This whole fucking thing... I did not watch my buddies die face down in the muck so that this fucking strumpet...
The Dude: I don't see any connection to Vietnam, Walter.
Walter Sobchak: Well, there isn't a literal connection, Dude.
The Dude: Walter, face it, there isn't any connection.
Thumb's Up


The Dude: She's gotta feed the monkey!

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pdxmonkeyboy

Since 16 May 2006
6081 Posts
forever labled as the
retired kiter & motorhead Unicorn Master



PostSun Mar 29, 09 4:00 pm    Re: That's just, like, your opinion man Reply with quote

NateDogg wrote:
"

Kiteboarding prices are going up because the industry is growing at the same rate as it's customer base. The problem here is it's the wrong type of industry growth. Instead of established companies taking bigger pieces of a growing pie, new companies are entering the picture and taking shrinking pieces of the same small pie. New profits (I'm talking revenue earned after initial investment) go to start up costs for smaller companies when they could have gone towards the bottom line for companies already beyond start up phase. Economies of scale are canceled.

Everyone wants to live the dream, and that'd be great if kiteboarding was growing at an exponential rate. Industry growth would be outpaced by rider growth 10 to 1. But growth in kiteboarding seems to be more in the linear stage than the exponential. Industry revenue growth is being soaked up by new companies, increasing costs are attacking the bottom line, and that's forcing everyone to raise prices just to stay above water. It's a precarious mix.


Thank Nate! that is just the explanation that I was looking for. I didn't think people were getting rich of kiteboarding but at times, when you look at the price of gear and what your buying, your like Damn, this cost 2k? Not being an economics major-or was it finance? - I kind of missed the part about more companies actually causing prices to go up do to less market share for each company.

Not a huge deal, like someone said, we want the stuff and will pay what it costs- just wanted a little insight into the market. Everyone knows the REAL money is teaching lessons. Laughing

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forrest

Since 21 Jun 2005
4330 Posts
Hood River
Hick

CGKA Member


PostSun Mar 29, 09 7:31 pm     Reply with quote

I didn't think you could debunk a Myth. Anyway, I don't think you succeed in debunking the argument that growth will lead to cheaper gear.

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pdxmonkeyboy

Since 16 May 2006
6081 Posts
forever labled as the
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PostSun Mar 29, 09 8:06 pm     Reply with quote

Well Forrest, it certainly hasn't helped to date now has it.

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NateDogg

Since 05 Mar 2005
627 Posts
I caught your mom on
cineaptic.com



PostSun Mar 29, 09 8:57 pm    Re: That's just, like, your opinion man Reply with quote

pdxmonkeyboy wrote:


Thank Nate! that is just the explanation that I was looking for. I didn't think people were getting rich of kiteboarding but at times, when you look at the price of gear and what your buying, your like Damn, this cost 2k? Not being an economics major-or was it finance? - I kind of missed the part about more companies actually causing prices to go up do to less market share for each company.



Haha...Finance. But my economics prof was the man.

Without transparency in the industry though, it's tough to tell for sure. This is just an opinion of me and a few others deeper in the know than I. Once a kiteboarding company rolls out an IPO, then I'd be worried about high prices and bros rolling Maserati's on kiteboarding money.

Until then, feel good that your money is going to a good place; it's driving the further development of the products you enjoy, it's supporting your local shop that strives to create a sense of community and support for local riders, and it's allowing photogs, filmers and pros to create the content that will eventually bring even more resources ($$$) to our small industry. Those resources fuel bottom lines, which then allow certain companies to take advantage of volume selling by lowering their prices. It just takes time

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forrest

Since 21 Jun 2005
4330 Posts
Hood River
Hick

CGKA Member


PostSun Mar 29, 09 11:17 pm     Reply with quote

Don't try and change the subject! I'm pretty sure you got this idea from my argument about how and why to grow the sport.

pdxmonkeyboy wrote:
Well Forrest, it certainly hasn't helped to date now has it.

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pkh

Since 27 Feb 2005
6549 Posts
Couve / Hood
Honored Founder



PostMon Mar 30, 09 6:00 am     Reply with quote

Luckily the used gear market is very good right now. For entry into the sport used has always been the way to go.

It might benefit the industry to promote the used market just to get more riders into the sport, especially young ones. This year's used market buyer will be next year's new kite buyer.

You don't want young athletic kids looking at the sport and saying "that's too expensive for me, I am just going to go snowboarding."

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Bonetti

Since 29 Apr 2007
411 Posts
So. Cal./Oregon
Obsessed



PostMon Mar 30, 09 7:13 am     Reply with quote

Screw all that!!!! I remember when "BEST" had the buy one get one free deal!!!!!! If more kite companies did that they would sell lots of kites and still make money!!! Look how big best is now, I've never owned a BEST but there sure are a lot of them flying around everywhere I go so....
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Sol-flyer

Since 21 Mar 2006
1280 Posts
Dude, where's my Bus?
Otto Mann



PostMon Mar 30, 09 7:40 am     Reply with quote

Bonetti wrote:
Screw all that!!!! I remember when "BEST" had the buy one get one free deal!!!!!! If more kite companies did that they would sell lots of kites and still make money!!! Look how big best is now, I've never owned a BEST but there sure are a lot of them flying around everywhere I go so....


correct me if i'm wrong,....but was'nt best the first to try online sales thru the're website??? And does that seem like the ultimate slap in the face for there dealers?

What happened to best now?...I think i see a pattern emerging Wink

Its all very simple,....if you wonder where all the money goes. Take a look at "CALIBRATE" and you'll see some Lambo's Twisted Evil and uber special attitude Laughing .

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NateDogg

Since 05 Mar 2005
627 Posts
I caught your mom on
cineaptic.com



PostMon Mar 30, 09 8:13 am     Reply with quote

Sol-flyer wrote:

Its all very simple,....if you wonder where all the money goes. Take a look at "CALIBRATE" and you'll see some Lambo's Twisted Evil and uber special attitude Laughing .


Haha, yeah, a rental maybe.

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pdxmonkeyboy

Since 16 May 2006
6081 Posts
forever labled as the
retired kiter & motorhead Unicorn Master



PostMon Mar 30, 09 9:18 am     Reply with quote

Forrest wrote:
Don't try and change the subject! I'm pretty sure you got this idea from my argument about how and why to grow the sport.

pdxmonkeyboy wrote:
Well Forrest, it certainly hasn't helped to date now has it.


and I'm pretty sure your reading into it too much. The point of my post was to try to shed a little light on the economics of the kite industry and the ability of growing numbers of kiters to reduce prices. Something Nate shed some light on. It was just a passing interest for crying out loud, not some statement about where the sport is going how how to make it grow. I guess it is related to why to grow the sport as you did mention lower gear prices as one of the perks. Just got to thinking as to how that would really work and if it would actually happen.

At any rate, why so agro? Have I not been doing things to grow the sport or open new avenues for expression-- or supporting your efforts to do the same? Is that new baby keeping you up at night?

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fokiten

Since 04 Mar 2005
188 Posts

Stoked



PostMon Mar 30, 09 10:05 am     Reply with quote

"It puts the lotion on its skin or it gets the hose again"...wink !!! hehehe

So what do you think? is it still growing in the gorge?

It's not growing round here, and that's perfectly ok with me...

Nobody pays retail here anyway, never did...
f

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Moto

Since 03 Sep 2006
2698 Posts
Still a gojo pimp!
Moto Mouth



PostMon Mar 30, 09 10:11 am     Reply with quote

Yes dude - it is still growing in the gorge. Every year it gets more and more crowded - every year more and more people start spilling over from the hood to surrounding spots - some people call these guys hood river refugees. Guys that live in HR but travel else where to kite on the weekends cus they can't take the crowds at the sand spit.

Even sauvie is starting to get crowded - before that place used to be the place to go to get away from the crowds - however, now the launch area is crowded (not as crowded as the spit but still crowded) - you have to work to make room. And if you want room to throw down your moves you have to travel way up wind - almost to the nudey part of the beach.

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fokiten

Since 04 Mar 2005
188 Posts

Stoked



PostMon Mar 30, 09 11:01 am     Reply with quote

that's a shame...

there's hope though, as

Yogi Berra once said,

"Nobody goes there any more, it's just too crowded"

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pdxmonkeyboy

Since 16 May 2006
6081 Posts
forever labled as the
retired kiter & motorhead Unicorn Master



PostMon Mar 30, 09 11:13 am     Reply with quote

Wow, Yogi Berra has been to the sand bar!! The sport is for sure growing pretty damn fast. Nate probably knows how many people crank through the Real system on any given season. I think there are some inherent things that will keep the numbers relatively low though. Chiefly, somewhat mandatory lessons, the risks involved, and the lack of rentals -cost of gear. I.E. anyone that wants to try snowboading can go to a resort, rent a board, and make their way down the hill without the risk of drowning or dieing so its a little more weekend warrior or family oriented.
Who knows though, gear innovations could jack up the safety level even more and maybe one day Joe Schmo could see guys kiteboarding and just walk down to the beach, rent some gear and give it a go. I would think that if there was an easier way for people to experience the thrill, the sport would really explode.

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fokiten

Since 04 Mar 2005
188 Posts

Stoked



PostMon Mar 30, 09 12:03 pm     Reply with quote

Nice,

Of course Joe Schmo would still have to pull it, and that seems to be the fly in this almighty safety ointment.

read: wide eyed is still the default reaction to horror...

O' the Horror

T.S. Eliot

we measure out our lives in coffee spoons...

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