w_ndrunner wrote:
Tony,
for the past four years, the shop that I patronize has year end kite sales and the savings have been more than 30%, so what would be the incentive for a store to sell at a loss...
given that the store is still in business does that mean they make very very close to 30% on most item allowing them to sell some items at a loss to gain a broader customer base who in the future will buy at the 30% mark up price...
windr
This means the shop is losing money on the Item..This is how it works. You the shop pay 1000 dollars from a company for a kite to sell. You charge 1300 for the kite. (almost all distributors charge the dealer 30% less then retail for their items)..What they stock and how much of it may effect their margins slightly but only by a percent or two. The shop then works their ass off to sell the kite, and lets say they do not.
The new model year comes around and they still have the kite, and the start marking it down trying to make ANY profit what so ever off it,,,Then at some point the retailer has to make a call. Do I allow a 1000 dollars worth of stock sit and decrease in value or do I take a hit on it to use that 1000 dollars to fund new product that I may make money off of and keep my doors open for one more year......
When you get a item at 40% off the store eats that 10% there is no magic here, No shop is ripping you off, they take the hit and hope you will thik of them next time and then they can make the 10% they lost back. The store needs to sell items at a t least 20% mark up to stay alive and open.
Auto parts are a different story. they have a different margin because of reuse,(core charges rebuilds, plus dishonest shops reusing parts after a coat of pant etc. Plus Millions of people own and use cars while only thousands are kiters so making a 1000 dollar part in kiting cost 500 then gets 20 percent at the distributor to import, cover fees (shipping, and import taxes mostly) then 30% at the retailer. If it sells for less then 20% it cost them money becuase you need about 20% margins to keep the lights on and the doors open, in the end you are lucky to make 10% if every thing sells and such. A 1000 dollar part in the auto industry cost about 300 so there is much more room for savings, because of the numbers made at a time.
Please support your local shop. Mine bust ass to keep beaches open, trains new kiters to be safe, promote brands that have solid reputations...But of coarse they could not make it alone as a kite shop..They have to also sell Para gliders, and lessons, as well as big boy toys, speed wings powered skateboards and such..and even then they only make about a 5% profit a year, just enough to pay the employees and the owners....
Mostly because of internet sales that do not stock and drop ship from the manufactor at a smaller profit margin more like 20% so you save 10% but they do not take the risk of having unsold items..
If you really want good deals Buy used gear from people that are going to buy new gear from shops.
Stretching a shop out so it loses money and trying to use the Kiteforum.com so you can save a few hundred while putting your local shop under seems like weak sauce to me... Look at the ads from people trying to get you to spend money with them all over this place...
I have tons of 2012 North gear for sale PM me for list and prices.