posts: 223482
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| 223482 | 11440 | Molded, Reverse Engineered, Handshaped by One Only...WHAT IS ACCEPTABLE TO YOU? | 97 | Bruce Fowler | Oct 15, 2021 | 2021-10-15T10:48:03-0400 | Ricksurfin said: I repeat, the shop cost for Firewire boards is not $150, try 3-4 times that. The landed price for Firewire may be $150, but that's what Firewire has into them, not what the shops cost is. Click to expand... Okay,, so the "landed price" meaning they paid themselves for overhead, materials, labor, shipping, marketing to get the product to market at $150....... so who distributes them at this end charging shop accounts $450 to $600? That actually doesn't make sense. A distributor doesn't make that kind of profit esp. when dealing with volume distribution. The classic formula back when, was a manufacturer has to produce a product for $1 and sell it @ $3 before it ever makes it to the consumer. The retail entity buying the product would often 'keystone' aka double the price they bought it for. Some products have less margin (like yachts, aircraft) while others have more. Now days you see all the hopeful entrepreneurs on "Shark Tank" pitching their product(s) and the margins are a 1 to 12 ratio or much more than 1:3.......... and the ones that are lean on margin are always told to go offshore to have the product made. If the shops are taking them on consignment, and many are, then perhaps the pricing is reflected for that method of selling to the shops, but I seriously doubt it is 3X to 4X the landed price. I guess I can ask shop owners I know what their price is........ either way, Firewire flooded the market w/their product from SF to the Mexican border, and I think there isn't a high demand for the boards. I've had plenty of guys that had a Baked Potato or some other model that they were getting off to get one of mine. II don't care how Firewire spin doctors it, the boards are cheap to make in Asia, and that allows them the margin for marketing, demo vans to hit beaches, freebies to pro surfers, and the gamut. That money has to come from somewhere and unless they are operating at a loss the nuts & bolts making for a bottom line has to be attractive unless your looking for a tax write-off (not even sure how you would enjoy that when owning an offshore, non domestic business). |