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Why are kites so expensive?
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Post new topic   Reply to topic    Northwest Kiteboarding -> Gorge / Portland / Oregon Coast
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gorgebob

Since 25 Jun 2007
259 Posts
Portland, OR
Shop Owner



PostFri Jul 24, 09 7:00 am     Reply with quote

Wow .
Kites are not a money maker themselves , its a silly business plan if you pencil it out.
Shelf life is short, colors and sizes, they are expensive to buy, and dumped on line and sold direct from the manufacture.
Those kites being sold from last year at 50% off are a loss unless bought on closeout.
Support your local shop. Let them know what you want and allow them to at least try to get it for you. They will be putting money back into the sport (parts and support) and you will in the long run have more fun with better gear.
Please send me my Mercedes now, not a busted up one from next door.

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Gorge Performance
http://www.gorgeperformance.com/
Surf, Snow, Kite, Sail, Skate – Since 1983
Portland
503-246-6646

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bwd

Since 04 Aug 2007
385 Posts

Obsessed



PostThu Jul 30, 09 6:01 pm     Reply with quote

Got to dredge this one up again

From kiteforum.....

Quote:
I found this site while browsing on the internet http://www.made-in-china.com/china-products/productviewhbMnersHOxpJ/Bow-Kite-95062900-.html
300 is mad cheap

would never want to buy from a company like that and dont support it soo dont shoot down this thread down but im just curious what this is. is it a brand or a no name kite that some brands probably buy from and throw there logo on or send in there kite desighn orders too this company to produce for them at minimal cost???


So, there is your answer.
$300.

3-4x cost is normal.
5-6x cost is for suckers, like vegetarian sushi!
Makes me feel like a sucker...

The whole idea that the small size of the industry makes them expensive is largely cancelled by the fact the same few factories make all the kites. having made a 100,000's of them, they are now quite efficient....

Enjoy your kite$.

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KidCorporate

Since 10 Jul 2007
563 Posts

Addicted



PostMon Aug 03, 09 9:14 pm     Reply with quote

bwd wrote:
Got to dredge this one up again

From kiteforum.....

Quote:
I found this site while browsing on the internet http://www.made-in-china.com/china-products/productviewhbMnersHOxpJ/Bow-Kite-95062900-.html
300 is mad cheap

would never want to buy from a company like that and dont support it soo dont shoot down this thread down but im just curious what this is. is it a brand or a no name kite that some brands probably buy from and throw there logo on or send in there kite desighn orders too this company to produce for them at minimal cost???


So, there is your answer.
$300.

3-4x cost is normal.
5-6x cost is for suckers, like vegetarian sushi!
Makes me feel like a sucker...

The whole idea that the small size of the industry makes them expensive is largely cancelled by the fact the same few factories make all the kites. having made a 100,000's of them, they are now quite efficient....

Enjoy your kite$.


Kind of how I feel about the RPM's, the kites have roughly 40% less componentry thanks to the deleted struts but they charge just as much as a Rev... doesn't stop me from wanting them though! Confused

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Pepi

Since 16 Jun 2006
1832 Posts
Pure Stoke Sports
Shop Owner

CGKA Member


PostMon Aug 03, 09 11:22 pm     Reply with quote

bwd wrote:
Got to dredge this one up again

From kiteforum.....

Quote:
I found this site while browsing on the internet http://www.made-in-china.com/china-products/productviewhbMnersHOxpJ/Bow-Kite-95062900-.html
300 is mad cheap

would never want to buy from a company like that and dont support it soo dont shoot down this thread down but im just curious what this is. is it a brand or a no name kite that some brands probably buy from and throw there logo on or send in there kite desighn orders too this company to produce for them at minimal cost???


So, there is your answer.
$300.

3-4x cost is normal.
5-6x cost is for suckers, like vegetarian sushi!
Makes me feel like a sucker...

The whole idea that the small size of the industry makes them expensive is largely cancelled by the fact the same few factories make all the kites. having made a 100,000's of them, they are now quite efficient....

Enjoy your kite$.

Yes, time to enjoy your brand new 4yr old knock-off model, chinese no-name, non-warranty-able, non-brand supported, unproven $460 (sorry, but add in airshipment and customs/duty to your $300 kite for it to be legit) brand new kite.Wave

Or, you could support your local/domestic brand and local shop that promote, test, sell and provide follow up support for your new 2009 or 2010 well known, well tested and very well proven kite package.Thumb's Up

For those of you who have never taken a business or economics class, here is the simple dumb dumb price breakdown of costs for you to better understand why your kite costs what it costs (or for those closeout junkies, areas where your local dealer does not make any money on a kite when he/she has to sell it at closeout price).
Here is your ballpark "secret" cost breakdown - $400-500 out of factory (for a 'good' 7m2 kite/minimum production order of 1000-1500 kites), add in customs/duty, then shipping cost and you have a landed kite at $599-699, then add in your profit margin to cover costs for actually developing, testing and marketing the kite, as well as providing salary/wages for your staff -$999-1099, then add in a similar profit margin requirement for your local dealer who also has to pay for shipping costs as well as pay for rent, marketing, local community support, and staff wages to end at a retail price of $1399-1599, which in the end gets cut by 10-25% after giving customers deals to prevent from losing out to unsupported bro-deal brands that under-sell over the internet or in the parking lot of the beach that your local shop has worked hard to keep open so that you can just drop in and kite any day on.

As Bob had so kindly put it, once you start to look at the realistic investment/profit margin breakdown in the kiteboarding industry, it does not really make much economical sense for attempting to support a successful retail business.
If everyone is so upset about kite pricing, they should get even more upset at t-shirt pricing and jeans pricing mark ups. Those are the categories where people are driving the real banktrucks.

Class is over, the "secret" is out and the kitepolice will now be looking for me . Time to begin working on your mandarine chinese so that you can begin working on your teamrider deals from your new kite reps at the Feilong Factory in Weifang, Shandong, China.

No more kiting for me. While you guys are saving so much money buying your no-name factory kites, I'm off to become the new t-shirt and jeans retail king of Hood River so I can take all of your money that you saved buying cheap kites from China Twisted Evil

_________________
Pure Stoke Sports
Hood River, OR
http://www.facebook.com/pages/Hood-River-OR/2nd-Wind-Sports/35891485558?ref=mf
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bwd

Since 04 Aug 2007
385 Posts

Obsessed



PostTue Aug 04, 09 6:26 am     Reply with quote

Well, I hope you weren't taking that too personally.
Clearly criticizing the cost structure keeps hitting nerves.

I am not calling anyone a bad person or bad businesman.
I have taken some econ myself as well, when I was a young lad Wink
I know the old iffy kite is not a great example, but it serves a point.
It is a real price, and that's why I put it up.

It still burns me up that I can hire a designer to deliver a custom sail for 2x cost, but have to pay 4x+ for a production kitesurf kite.
The high markup cuts it for tees, jeans, and other cheap crap with screen printed logos and a fashion lifespan measured in months.

It doesn't apply for boats, houses, cars, boat or windsurf sails.
It needn't apply to kites.

The industry is on a lame path. Evil or Very Mad

But it's still a good sport, so I keep playing the sucker,
-and sometimes buying gear that is just getting its "2nd wind,"
so to speak
Wink

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trevorsmith

Since 25 Apr 2005
501 Posts
PDX
Addicted



PostTue Aug 04, 09 7:45 am     Reply with quote

bwd wrote:

It doesn't apply for boats, houses, cars, boat or windsurf sails.
It needn't apply to kites.

The industry is on a lame path. Evil or Very Mad


Seriously believe that? You think an avg car out of Detroit actually costs $20K-$30K to make? And talk about "Markup", what about the 5 to 6% cost you paid your realtor for when you sold your last house? For a $300k house, you think they did $18k worth of work? Do the math, split between 2 realtors @ $30/hr that means they would have to put in 300 hrs of work each or 14 weeks of work together. I don't think so.

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pkh

Since 27 Feb 2005
6549 Posts
Couve / Hood
Honored Founder



PostTue Aug 04, 09 7:55 am     Reply with quote

First, I know a lot of industry folk and I don't know any rich people in the kite industry... just people making (sometimes) living wages while working their butts off so that we can have fun.

I used to be the biggest proponent of cheap kites (search on kiteforum for posts by "Dax") ... and I still would love to see the cost of entry into this sport lowered so that more youth and underprivledged folks could join up.

BUT, truth be told kiting is expensive, especially if you do it a lot. Gear breaks, needs to be replaced, you need a lot of it to ride varying conditions. Lessons cost money, gas is expensive, you need medical insurance, you need free time.

Kiting is also a lifestyle choice IMO, if you really want to be a kiter you will find the money. You will drive a crappy car, eat ramen noodles, do whatever you can to get your fix.

Getting deals on gear is great, but so is having killer local support from shops like 2nd Wind, Gorge Performance, Windance, etc.. I like that these companies employ local rippers who kill it out there, more jobs, what a concept.

So if saving a few hundred bucks is worth it to you, then there are brands out there that minimize the retail component and have price point kites. Otherwise, let people know you support local shops and fly a brand that is available from the shops.

The good news is kites these days still fly great even after a hundred sessions of abuse. They have servicable parts that can be replaced with components from... your local kite shop! See you out there Very Happy

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mschulz

Since 29 May 2007
530 Posts
Reno, NV
Addicted



PostTue Aug 04, 09 7:57 am     Reply with quote

This is going to sound lame, but I actually think the cost of kites is reasonable. Look at how many of us update our quivers every year or two? I know I do. If people can't or do not want to put up the cash for new gear, buy someones 1-2 year old gear. If that is to expensive, maybe this is not the sport for you.

As for internet vs retail shops. About three years ago there was an article in Kiteboader magazine. It talked about the need for local shops. What will you do when you are on vacation and your bridled breaks, blow out a bladder, or the simple things of needing new lines. Do you have time to wait for them to be shipped. I don't think so. Time is money, and when i am kiting, I would charge $500-1000 per hours to convince me not to. I sure hope Pepi and Bob keep their shops open because they have helped me out in a pinch (many times over).

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fokiten

Since 04 Mar 2005
188 Posts

Stoked



PostTue Aug 04, 09 8:04 am     Reply with quote

just buy used kites...

your savings will be 70% off..

Kites have all been about the same since 2004.

So many gear heads, so many who think you can by a gybe.

Remember that maxim?

no need to buy a 2010 kite, no need to spend any money until your old gear falls apart.

the pretentious spend...

but, you still can't buy a gybe
fo

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tinyE

Since 21 Jan 2006
2004 Posts
not really an
XTreme Poster



PostTue Aug 04, 09 8:07 am     Reply with quote

Pepi wrote:



Yes, time to enjoy your brand new 4yr old knock-off model, chinese no-name, non-warranty-able, non-brand supported, unproven $460 (sorry, but add in airshipment and customs/duty to your $300 kite for it to be legit) brand new kite.Wave



the fact is though, not everyone buys brand new kites already, so warranty and support are pretty much out the window... and, unfortunately, the pricing structure has created this.

Kiteboarding is a worldwide sport, millions of kites are sold every year, but still prices rise...and rise.

I understand needing profit margins to stay in business for both companies and distributors/local shops... but the real reason for kite cost is supply and demand. They make just enough to satisfy the ever growing market, and then some "new, ground breaking technology" creates the need for a new year's design. Funny how that happens year after year. Ironically, as long as people keep trading their last year's kites in for new ones, the prices will continue to rise.

The unfortunate thing is, most of the people on the yearly trade up program are paying somewhere around manufacturing cost for their new kites (they have told me), and they aren't really spending a dime...so it's just dumping more and more used kites out on the market, which means local shops and manufacturers aren't making money on sales, and at the same time, are driving up costs to fulfill those profit margins off of the few new sales to people who aren't getting the "bro deals".

I'm riding 4 year old kites now....getting bagged out... lines starting to wear...
$300...or $460 sounds very tempting.... who knows, they might be as good as what I've got? The only damage I see is that I wouldn't be promoting one of the 'big' guys by flying a big advertisement for them each time I go out. Perhaps that's just what the industry needs to shake it out a bit.

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bulae99

Since 12 Jul 2006
1692 Posts

XTreme Poster



PostTue Aug 04, 09 8:13 am    MeoFo is right Reply with quote

Buy used gear! The best deals are 09 kites with one seson on them. Save money on your board by getting an old board for $200.

If your smart and patient you can get a good 09 kite in winter for less, but you gotta know what you want.

If I was going to buy a used kite I would look at kites that last and have support. Take a look at the kites up in the air at the event site.

As you know I'm a tool, but I can tell you that Sling Shot lasts longer than many of the other brands. Sling shot is like the Toyota of kites here in Da Grudge.

Oh yea I'm selling my RPM's in September, Look me up.,

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fokiten

Since 04 Mar 2005
188 Posts

Stoked



PostTue Aug 04, 09 8:23 am     Reply with quote

Bye the way,

I don't sell my old kites...

if you want to start a museum just let me know...

I've even got a proto hellfish..

we don't even have shop in my neck of the woods, can't say I feel a bit disadvantaged by it though

go figure?
fo

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cosmodog

Since 06 Oct 2005
205 Posts

Stoked



PostTue Aug 04, 09 8:53 am     Reply with quote

Quote:
millions of kites are sold every year

Not what I heard, more like 150,000-200,000. Does make you wonder how that supports 35+ brands.

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pkh

Since 27 Feb 2005
6549 Posts
Couve / Hood
Honored Founder



PostTue Aug 04, 09 9:00 am     Reply with quote

Brett - bro deal = ~30% off retail, not at cost. You could get the same on closeout gear.

Team riders might do better than that but that's a select few per brand.

Also I know bro deals are getting cut back big time. Times are tough, kite companies are laying people off. Again, nobody is getting rich here.

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Hein

Since 08 Mar 2005
1314 Posts

Possessed



PostTue Aug 04, 09 9:19 am     Reply with quote

Want to pay even more for kites...and everything else? Just wait for the VAT. So much for not taxing the middle class (<250K/yr) Teeing Up the Middle Class

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eric

Since 13 Jan 2006
1872 Posts

XTreme Poster



PostTue Aug 04, 09 9:23 am     Reply with quote

I like taxes. I am paid by taxes. I feed from the public trough. Having visited many countries with no, or scant taxes, I think I like what we get here, and the price we pay for it.

that's just me

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pdxmonkeyboy

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



PostTue Aug 04, 09 10:05 am     Reply with quote

Hein wrote:
Want to pay even more for kites...and everything else? Just wait for the VAT. So much for not taxing the middle class (<250K/yr) Teeing Up the Middle Class


If your going to quote something, try to quote something with some facts or numbers in it. Not some op-ed opinion rant with no listed author. i.e. "Democrats have already taxed the middle class by raising cigarette taxes to pay for the children’s health-care expansion".

Those BASTARDS!! HOW DARE THEY PROVIDE HEALTH CARE TO CHILDREN BY TAXING SMOKERS.

How is the middle class supposed to flourish if they can't purchase cigarettes at an affordable price? Tell me that? If they can't invest in a smoking habit, in hopes of reaping all the health and financial benefits of smoking, how are they ever going to get ahead?



Those liberal terrorists!

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