Equipment prices, the economy, exchange rates and the future

Shoot the breeze and stay in the loop with the unhinged and unhooked word on the street.
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timba14
Posts: 1034
Joined: Sat Oct 30, 2004 12:31 am
Location: Shoreham Bitch

Thu Nov 27, 2008 11:02 am

So is there any British owned kite manufacturers ?

I guess it won't make a difference tho as all the factories are in far off lands and everybody trades in $ or Euro.

But if the pounds is weaker surely that will mean wholly British produced kites/boards will be cheaper to Jonny foreigner abroad ?

Could we see kite manufacturing actually coming back to the UK or are our overheads still bigger compared to the rest ?

Anyway kit will be 2.5% cheaper on Monday :lol: will you kite shops be passing on the cut ?
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CoNaN
Posts: 229
Joined: Wed Jan 31, 2007 9:02 pm

Thu Nov 27, 2008 11:09 am

GRF wrote:
at least the internet's not gonna close
Open to trading up your kite as part of the deal on the next £1200 one then is it?
what taking my kite at a cut price deal as a trade in and then flogging it with another 150 on top ? i can do that myself

Interested in helping you exchange the busted buckle on your warrior 2 harness?
no, and neither were any of the shops, I

There to teach enough newcomers to buy your last years kit so you can get new stuff?
id rather give the sudents to my mate Dave Sands, at least i know that hes a decent instructor and if i send them to him direct. I know that they will have a decent lesson and wont get fobbed off with shite, ive seen it too many times and its always the instructor who gets the flack not the shop owner who is never there to explain stuff to the clients

The internet store offering employment for local rider/instructors?
no but there was no employment for experienced instructors in the shops either, why, cos we actually asked for a decent percentage of the £40 per hour per person per hour that was the gong rate when i taught seeing as the wind is so fickle here ont he south coast. instead they shipped in rookie instructors so they could keep paying them £12 ph before "charges" so all the long term local instructors had to give up and go find a real job to make enough money to live. oh an then a certain shop in hove waited till it was time to pay up and then shafted its instructors and f*cked off. if that is the pheonix then i will be first in the door to welcome that little fucker,

Ready to deal with the local council in order to secure or protect beach rights?

Nope but if you have a look on the forum we are dealing with this ourselves afaik none of the local shops have ever bothered to try to do anything with lancing, shoreham in the beginning (4-5 years ago) maybe cos there was a buisness interest there.

You might not have a store in your locale right now, but you can bet your socks internet driven sales didn't exactly protect whatever may or may not have been in place in the past, nor did any of these direct sell operators with no back up school support.[/quote]




I don't want to get into a big argument on this one but as u can see am pretty disillusioned with shops... they open expect us all to flock and support and then return f*ck all, well thats the pattern in this area, it may be totaly different in other areas, and bonda, when working in shops i have seen certain brands of kites punted out with a 50% markup, granted this was 4 or 5 years ago and this may be different now but i cant imagine that it would have changed too much
I no longer look at shops through rose tinted specs, I work hard for my money, i want a good result for it and in my experience shops have never justified the extra expense. I would be over the moon if one could please prove me wrong

rant over
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dbinit
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Thu Nov 27, 2008 11:31 am

the 2.5% is a laugh.

Costs have risen by 30% on average since last year in many sectors. Many retailers have not been able to put their prices up at all (despite the rising costs) , because of the lack of spending they have kep the prices low to tempt buyers and move some stock, which means that they will likely not be lowering prices by 2.5%, and will be keeping the margin for themselves to try and offset rising costs and shrinking margins.

Of course MS and similar will announce it as a publicity stunt. But it will be in their pocket by the end of january.

Its only around a 2.1% decrease too, if you work it out .You gotta spend £1000 to save £21.. If you spend £100 on vatable products every week , you are £2.10 better off (save it up for 10 years and you can almost buy a new kite). Not a lot of help. However an extra 2.5% profit to struggling businesses will make a big difference to their year end and could make the difference for them to stay afloat.
What's a Griffin?

And if you're that worried about the dollar hitting 1.30, you should be hedging now whilst it's at 1.54

Since your Griffin will have to compete with better known brands hedged at 1.80..
Thought you'd never ask... You can almost buy 3 of them with bar and lines for £1200. And did I mention the warranty. It's amazing ...and from an internet retailer too... :shock: :shock: I guess a link would just be blatant right now.. I'll pm you with details.


We hedged a while ago, luckily saw much this coming as i deal with china and international markets on a daily basis. But those funds will run out sooner or later and then its the inevitable price increase. But until then we can swallow a lot of this. Thankfully

There is no doubt though that the better known brands will ride this out, but thats more than i can say for some of the retailers. Its a tough situation for them right now.
blue_eyes
Posts: 723
Joined: Wed Jan 18, 2006 2:58 pm

Thu Nov 27, 2008 8:21 pm

Cabrinha UK wrote:Yes I hear those jungle drums a beating!!! God help those boy's who live down that way!!!
.Lets hope its not a bunch of out of towners just trying to cash in selling kites and not caring about the local area and its problems....thats just what this area needs...just as well use the internet.
bonda
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Thu Nov 27, 2008 10:10 pm

CoNaN - those haven't been the margins for the top brands over the last 5 years.
And then when you factor in that shops (and distributors) usually have stock left at the end of the year that they have to discount, then the average margin is reduced.
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timba14
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Location: Shoreham Bitch

Thu Nov 27, 2008 10:14 pm

So if ain't Boost then is it Circus to air ?

Pray tell, oh what the feck, who cares, if ain't local I'm gonna stick with bacon sarnies :roll:
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Dick.E.D
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Thu Nov 27, 2008 11:30 pm

james wrote:would be nice to see a shop open that is able to pay its bills....

james

naish uk


nice one james,,,,,,,,,,,,,, been in that situation too

conan talks shit

and the bacon sarnies are fecking expensive but they are made from teijin bacon and cooked on a kevlar grill by a highly trained operative who`s just had a pay rise

best thread for ages,
beats all those "for sale" posts
M Shinn
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Joined: Wed Nov 23, 2005 5:29 pm

Fri Nov 28, 2008 7:54 am

I don't think a 2.5% margin increase at the end of January will go far to offset the 30% hit on the exchange rates.
realistically the shop price of kites can not rise more than 10 to 12% as we know that they are already too expensive....
The rest of the change will have to be absorbed by the distributors and the manufacturers...... the shops can not work on a lower margin as their exposure to risk is the highest.

It's not all doom and gloom but it has to be said, there have been better days ;-)

Shinn
bri
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Fri Nov 28, 2008 9:40 am

I think the bottom line for most people will be ( and not just kiting products ) you'll see a drop off in sales of expensive what is considered non essential luxury items. Convincing the missus £2K a year on kites is going to be a tough sell for anyone. I was listening to an interesting interview with Alan Sugar the other day and small business. His view was that if your company is important to you along with your staff then maybe you have to consider not making any profit for the forseeable future to secure your long term position.

I wonder how many companies are considering that position. So you balance your books and for the next what 2 years we kick the profit back to the consumer / business to exist. Then when it does turn you have a strong loyal customer base.
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CoNaN
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Fri Nov 28, 2008 9:43 am

Dick.E.D wrote: conan talks shit
nah mate am just not pally pally with /a defender of shop owners anymore. I've learned my lesson
loyalty works both ways . . .
Cabrinha UK
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Fri Nov 28, 2008 9:57 am

bri wrote: I was listening to an interesting interview with Alan Sugar the other day and small business. His view was that if your company is important to you along with your staff then maybe you have to consider not making any profit for the forseeable future to secure your long term position.

I wonder how many companies are considering that position. So you balance your books and for the next what 2 years we kick the profit back to the consumer / business to exist. Then when it does turn you have a strong loyal customer base.
Speak to many Importers and Shops I'm sure that they have been doing this for a while now :lol:

Chris

Cabrinha UK
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timba14
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Location: Shoreham Bitch

Fri Nov 28, 2008 10:05 am

Looks like the Circus 2 air mob are barging into Hove into waveriders old shop. (even tho they said Brighton on the e-mail)
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Mike B
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Fri Nov 28, 2008 10:06 am

As importers/brands and shops commit to less and less the fatories may well have their production runs halved... If this is the case they may start to compete with each other..

I'm not sure what their production profits are, but with the relatively specialist and limited production facilities available I would think they have had the better side of the coin for quite a few years now...

just guessing, but cost at manufacture is the biggest knock on effect... I wonder if they are looking at the situation as close as we are...?

Have a look at these two graphs;

first is Pound to euro rate since the summer... remember we started at 1.4...; http://www.x-rates.com/d/EUR/GBP/graph120.html

Second is the pound to Dollar rate, and it shows where it peaked at 2.01...; http://www.x-rates.com/d/USD/GBP/graph120.html

this give you a graphical representation of what we are looking at.. remember the dollar/gbp ratio is forcasted to drop to 1.34 - 1.37
Last edited by Mike B on Fri Nov 28, 2008 10:50 am, edited 1 time in total.
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Mike B
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Fri Nov 28, 2008 10:11 am

Cabrinha UK wrote:
bri wrote:
Speak to many Importers and Shops I'm sure that they have been doing this for a while now :lol:

Chris

Cabrinha UK
maybe for a few months... oh hang on.. that's the winter! There is an army of debtors waiting for any business... most shops have a running turnover.. if the shop is not taking they are at least 30days behind their suppliers bills.. it's a really bad position if they do not have a buffer...

maybe we should be careful what we say incase special branch comes knocking! couldn't believe that on the news...
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GRF
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Fri Nov 28, 2008 11:06 am

timba14 wrote:Looks like the Circus 2 air mob are barging into Hove into waveriders old shop. (even tho they said Brighton on the e-mail)
I'm sure they're not 'barging into' anything or anywhere, they may well have been 'invited' to take over the retail business whilst other areas are restructured and I'm sure they will continue to pay their bills where others have failed to.

I'm also sure they will consider all the times when they've bought stock, and demonstrated it only to watch it be purchased 'online' some times by the products so called 'distributor'.

They will probably also consider the times when suppliers who they've supported by purchasing 50 or so kites, placed them in their school, only to be told they can no longer order them whilst a nearby rogue beach trader still has access then 'dissappears' without paying his bill having severely affected their local market.

A local market they helped build, negotiated with the local council organized the first kite only zone, supported a club, produced free rider vests, organized insurance all whilst introducing newcomers that will buy new and used kites going forward.

But most of all I'm sure they'll welcome all and any fellow kitesurfers and continue to try and offer a reasonable 'service' as well as a fair selection of what kites and boards on the market are available to them or they are happy to recommend..

Either way, having a kitesurf shop locally has to be better than not having one.
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