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Go Back   WakeWorld > >> Wakeboarding Discussion Archives > Archive through June 07, 2004

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Old    Chad (maximum_carnage)      Join Date: Apr 2004       06-02-2004, 1:18 PM Reply   
I was wondering where the money goes into the construction and production of a wakeboard and bindings. How much do you think wakeboards and bindings are marked up after they are manufactured? Does the artwork featured on different boards affect the prices to? If anyone has any information or links about any of this, please let me know. Thanks
Old    C.I.E. J-Rod (jarrod)      Join Date: May 2003       06-02-2004, 1:24 PM Reply   
I'm sure any and every cost of doing business (overhead) is taken into account when equipment prices are established. Art design and print are a big part of it I'm sure.
Old    mango (mango)      Join Date: Mar 2004       06-02-2004, 1:45 PM Reply   
what i think is ridiculous is that some bindings cost more than a wakeboard.
Old    Karl De Looff (boarditup)      Join Date: Jan 2004       06-02-2004, 1:53 PM Reply   
Here is a partial list;

Worker's Compensation Insurance
Water
Sewer
Electricity
Natural Gas
Property Taxes
Building Maintenance
Office Supplies
Telephones
Cell Phones
Business Taxes
Fees and Permits
Environmental Compliance
OSHA Compliance
Trash Disposal
Lubricants
Patents
Licenses
Software
Website hosting

Engineering
Design
Art
Sublimation paper
Third party testing

Presses
Ovens
Routers
Drill press
Jigs

Printed graphics
Foam blanks or liquid foam
Inserts
Fins
Fastners
Resin and sealers
PBT sheets

Boxes
Plastic Packaging
Foam or cardboard bumpers
Tape

Shipping costs
Marketing costs
Warranty costs
Order Processing

Finally, there is the cost of labor.

All of this take capital, so there are funding costs and bank fees.

There is also business insurance.

At the retail end there is also cost and profit that needs to be made.

Frankly, I am amazed that the cost of the boards are so low. Even a used, nearly junk press is $40k.
Old    D O double G (d_o_double_g)      Join Date: Sep 2003       06-02-2004, 1:55 PM Reply   
Capitalism. Supply and Demand.
Old    Bill Montanye (bill)      Join Date: Feb 2001       06-02-2004, 4:10 PM Reply   
yup yup the price we are willing to pay has a lot to do with it..if we keep buying the stuff at the set price they will keep raising them up..

however thats the msrp and i know for a fact that boardshops do not pay anywhere close to what the msrp is...i wont stir the pot up but the reason most shops can afford to sell boards half price and help donate equipment to events is because of the markup so when they do mark them down they are stll breaking even or making a few dollars...
Old    Bill Montanye (bill)      Join Date: Feb 2001       06-02-2004, 4:23 PM Reply   
oh but to keep things even these shops are open to make money and they are a business so selling stuff for twice what they paid is not ripping us off its them trying to stay in business and make money which is what its all about..

i do apprecitate the occasional hookup they throw out though ..thanks guys..:-)
Old    chavezychavez            06-02-2004, 4:28 PM Reply   
Karl, I think you forgot sponsorships - unless you lump that into marketing.

Them damn pros cost a lot of money!
Old    holbywan            06-02-2004, 4:37 PM Reply   
Supply vs. Demand - Mr. Gony during Eighth Grade Economics
Old    Leo Lasecki (malibuboarder75)      Join Date: Jan 2004       06-02-2004, 5:03 PM Reply   
I bought a board and it came to me chipped. The store offered to send me a new 2004 or let me fix it and they would only charge me what they paid for the board. I decided to take the partial refund and fix it myself. They charged me $150 for a brand new liquid force balance 2003. If the store buys them for 150 and sells them for 350-400, then they are making a $200 profit. Remember that the wakeboard company also has to profit, so they probably make the boards for under $75. Its consumers and pricy pro wakeboarders who raise the prices.
Old    Tyler Hildebrand (ty540)      Join Date: Nov 2001       06-02-2004, 7:50 PM Reply   
Look at the Karl's list. Now remember that most dealers have a ton of costs as well. Paying employees, rent, utilities, etc. etc. With all these costs, generally speaking, businesses have to use a mark up of at least 35% to stay in business. So really, it isn't the consumers who are raising the prices. If it were, we would see a lot of people getting rich within the industry.
Old    Leo Lasecki (malibuboarder75)      Join Date: Jan 2004       06-02-2004, 10:03 PM Reply   
good point
But you have to admit that if you buy the board direct from the company it is way cheaper. But then you wouldn't have local shops to support the local scene. So I guess paying the extra $100 for a board is worth it in the end.
Old    Dan (wake2wake103)      Join Date: Jul 2003       06-03-2004, 10:19 AM Reply   
Alot of the time the board shops add a quite a bit of money to the boards. Go to http://www.adrenalinewatersports.com/ and e-mail them for a price on 2004 boards. They advertise one price that the factory makes them, but if you e-mail them you will get an great price. I was looking at the 2004 Parks. $396 everyware. E-mail them. The price drops to 335. And it is like this with bindings...ect. It is only LF,Hyperlite,and CWB.If you don't want to buy from them then you can e-mail that price to most other board shops and they will match it. I just e-mailed Maeghan Major and I am getting the Era 140 for $275. Trinity Board shop ofeers free shipping. So I am totally stoked.

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