Contact   Imprint   Advertising   Guidelines

Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Forum for kitesurfers
Johnny Rotten
Very Frequent Poster
Posts: 501
Joined: Thu Dec 04, 2008 1:50 am
Style: Surf and wake
Gear: Vegas
Torch
Neo's
Hand made boards of pure excellence
Brand Affiliation: None
Location: No fixed address
Has thanked: 10 times
Been thanked: 29 times

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby Johnny Rotten » Tue Apr 29, 2014 4:14 am

ORSales wrote:
Johnny Rotten wrote: $500 up front on 1649 means your leasing a $1149 for $77 a month for 10 months with a fair market residual of 700
Yeah, you're kind of misunderstanding the structure here. Our lease rate is actually 4.2%. The initial payment is an upfront chunk towards the 12x monthly payments. As mentioned, we could have made the monthlies higher but it meant much higher risk for us up front and I couldn't get accounting to sign off on that. Instead, we put the inception payment up front and then made the monthlies much lower. The result is the same, after 12 months you have paid us roughly 55-60% of the retail cost of the kite.
Where's the 55-60% coming from

Using the 12m example you pay 1220 on 1649 and walk NOTHING that's 74% of the retail cost.
You don't need to do the math to realize that paying for 75% of a product and getting nothing at the end of a year is a shit deal! and is why most people have lit up this post.

using the 12m example:
From a financial perspective You have an 11 month lease, 1649 principal, with 429 down (Lease inception + last month payment) with a residual of 569 (which is excessivley conservative....in your favor)

To the penny that is an interest rate of 21.56% about as good as bad credit card
Image

Now if you use a reasonably conservative residual of 700 that number jumps to 34.73% Image


I think you guys need to check your math....The only way you are getting a 4.2% interest rate is if you forgot to include the 1st and last month payment in the calculation ......take it back to accounting.....

I think the idea is great and honestly don't believe you intented to stack the financial odds this heavily in your favour., but when you combine a mis-calculated target interest rate with a overly conservative residual the resulting offer is glaringly bad to your perspective customers.

OceanAdventures
Frequent Poster
Posts: 319
Joined: Thu Jan 21, 2010 2:23 pm
Local Beach: Leeside park - Fort Walton Beach
Gear: Wainman Hawaii
Brand Affiliation: Wainman Hawaii
Has thanked: 0
Been thanked: 0

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby OceanAdventures » Tue Apr 29, 2014 12:08 pm

Johnny Rotten wrote:
ORSales wrote:
Johnny Rotten wrote: $500 up front on 1649 means your leasing a $1149 for $77 a month for 10 months with a fair market residual of 700
Yeah, you're kind of misunderstanding the structure here. Our lease rate is actually 4.2%. The initial payment is an upfront chunk towards the 12x monthly payments. As mentioned, we could have made the monthlies higher but it meant much higher risk for us up front and I couldn't get accounting to sign off on that. Instead, we put the inception payment up front and then made the monthlies much lower. The result is the same, after 12 months you have paid us roughly 55-60% of the retail cost of the kite.

I think you guys need to check your math....The only way you are getting a 4.2% interest rate is if you forgot to include the 1st and last month payment in the calculation ......take it back to accounting.....

I think the idea is great and honestly don't believe you intented to stack the financial odds this heavily in your favour., but when you combine a mis-calculated target interest rate with a overly conservative residual the resulting offer is glaringly bad to your perspective customers.
First and last month payment is included in the initial. So you pay 10 more times for the year.

User avatar
The Captain
Frequent Poster
Posts: 380
Joined: Thu Oct 29, 2009 1:53 am
Brand Affiliation: None
Location: POOR SATELLITE RECEPTION
Has thanked: 0
Been thanked: 0

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby The Captain » Tue Apr 29, 2014 12:51 pm

ORSales wrote: Our goal wasn't to make more money. It was to find new ways to support our customers and get people on the water. This whole program supports local retail and has been constructed with our dealer input.
I thought that was funny too...but understand he meant higher margins.
Different strokes for different folks...I get where they are coming from, and programs like these have a way of sorting themselves out. Either they work, or they get adjusted. Time will sort that out.

User avatar
stakas
Frequent Poster
Posts: 280
Joined: Tue May 04, 2004 11:49 am
Brand Affiliation: None
Location: Key West
Has thanked: 1 time
Been thanked: 4 times

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby stakas » Fri May 02, 2014 9:34 pm

An other thing I would do if I were to have a kite company: I would offer to apply 50% of the original price of the kite towards the purchase of a new one within a year. The kite has to be in decent shape no holes or other obvious damage.
It would really make me buy a new kite lot more readily if I were to know for sure the residual value.

User avatar
ORSales
Very Frequent Poster
Posts: 1018
Joined: Tue Nov 15, 2005 6:29 pm
Has thanked: 2 times
Been thanked: 23 times

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby ORSales » Mon May 05, 2014 11:37 pm

Apologies, again, for the delayed answer here folks. I was attending our annual Crew Event in Hatteras, NC last week and spent very little time looking at forums. However, I have attempted to answer below!
soul19 wrote:Your goal isn't to make more money? Really? The whole purpose of this offer to get get more people to buy into this marketing strategy. Kudo's for coming up with another option for those that want to have new kites every season but this is conceived to help increase OR's market share.

James
Sorry James, you are exactly right. What I meant was that we were not aiming to make more money per kite sold but unapologetically are looking to get more people onto our kites, they are fantastic kites with a 13 year history in the market. Few other brands have this much experience.
shawn13 wrote:Personally, my quiver is large enough that I can spread my use out of my kites over a longer period (like 2 years). Do you think in the future you'll have a multi-year plan? I'd love to support a Canadian kite company. Ive heard great reviews from online and in person riders and now that you are no longer connected with JT I will be watching on the beach to try and test OR kites for the future replacement of my quiver.
Thanks Shawn! We are absolutely looking at a 2 year option but wanted to start somewhere. Please get in touch with us directly if you wish to discuss how this might work for you, we are open to trying something out with you to use as a pilot program!
Johnny Rotten wrote: Where's the 55-60% coming from?....

I think the idea is great and honestly don't believe you intended to stack the financial odds this heavily in your favour.
Johnny, I might not ever convince you this is a good deal but I love your username. As Curt pointed out above, once the 1st payment is made there are only 10 more payments... not 12 so that's where your math is confused.

However, to address your repeated caps locked reminders that after 12 months the consumer walks away with "nothing", I will again summarize our approach:

Currently, customers pay 100% of the kite upfront and hope to recover 50% a year later upon resale. Our option lets them pay 55-60% over that year and avoid the hassle of reselling the kite.

You might not like the sound of this program, but if any of your bandmates in the Sex Pistols are interested I encourage them to get in touch with us. We aren't forcing anyone to buy into this program... but, I am an anarchist.
stakas wrote:An other thing I would do if I were to have a kite company: I would offer to apply 50% of the original price of the kite towards the purchase of a new one within a year.
Stakas - This option is also one we have been tossing around. The key for us is to find a way to work with our dealers to implement it on a wider roll out. It's also not as attractive (in our mind) as it still requires a large up front purchase. Worth considering though, for sure!

The upshot is - this is a brand new program and as so many of you rightly point out, it will evolve over time. Truly appreciate all your interest in it though, keep the questions coming if you have any more! Otherwise, visit our website and sign up today! lol - oceanrodeo.com/lease

~JohnZ, OR

User avatar
ORSales
Very Frequent Poster
Posts: 1018
Joined: Tue Nov 15, 2005 6:29 pm
Has thanked: 2 times
Been thanked: 23 times

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby ORSales » Tue Jun 17, 2014 12:35 am

Thought I would revive this thread as we have taken all of your feedback seriously and have introduced some revisions to the Flight Plan!

The program is now a very simple 12x equal payments and we have introduced a Finance option to the original Lease proposal - clearing up any question of cost associated with those people who choose to buy out their lease after 12 months.

Here are some examples:

9.5m Prodigy Complete, Lease for $72.95 per month or Finance for $133.74
10m Razor Complete, Lease for $79.95 per month or Finance for $146.58
17m Flite Complete, Lease for $104.45 per month or Finance for $191.49

More details can be found online at oceanrodeo.com/flightplan!

User avatar
windfreak74
Very Frequent Poster
Posts: 566
Joined: Tue Mar 23, 2010 1:16 am
Kiting since: 2005
Weight: 70 kg
Local Beach: la trinchera
Favorite Beaches: maule region
Style: weird style!
Gear: switch helium3 7m 2018
Crazyfly 115 x 44 Chill 2021
nobile 2hd 134x42 2018
Manta foil 2015/2018
Brand Affiliation: none
Location: Chile/Brasil
Has thanked: 28 times
Been thanked: 8 times

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby windfreak74 » Tue Jun 17, 2014 3:52 am

Great news!!,
Now include the boards too so we can ride all new gear!

:thumb:
Pedro

Westozzy
Very Frequent Poster
Posts: 2918
Joined: Sat Jun 30, 2012 11:25 am
Local Beach: Mandurah
Style: Freeride, wave
Gear: Rebel, Vegas 2012
Brand Affiliation: None
Has thanked: 0
Been thanked: 1 time

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby Westozzy » Tue Jun 17, 2014 4:11 am

So there is no upfront initial payment just the monthly cost, re lease or finance option.

If this is the case I really think this would be a fantastic option, to resolve your kite costs down to a monthly cashflow position.

Excellent idea that may have evolved to a workable model.

Okay accountants or those in the know from the last posts, redo your calcs and let the rest of us financial bunnies an analysis of the new deal.

Could you couple it with a 30 day try before you buy aka switch model??

User avatar
shawn13
Very Frequent Poster
Posts: 811
Joined: Tue Sep 04, 2012 3:21 pm
Local Beach: Cherry Beach, Toronto
Sherkston, Lake Erie
Wasaga, Lake Huron
Favorite Beaches: In Order:
Mauritius, Soma Bay, Egypt/ Cape Town, SA/ Cayo Guillermo, Cuba/ Sherkston, Canada/ El Gouna, Egypt/ Paje, Zanzibar/ Oliphant, Canada/ Kalpitya/ Dakhla, Morocco/ Boracay, Philippines/ Sri Lanka/ Wasaga Beach, Canada
Style: Freeride/Race
Gear: Cabrinha
Location: GLOBAL
Has thanked: 0
Been thanked: 2 times
Contact:

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby shawn13 » Tue Jun 17, 2014 4:01 pm

This is great news! Good on OR to listen to the consumer!


Westozzy - No one is ever going to send a kite to beat down for a month and send back. This is what demos are for.

User avatar
dracop
Very Frequent Poster
Posts: 885
Joined: Thu Nov 21, 2013 4:37 am
Local Beach: Naska Beach - Kanaha - Maui, HI USA
Waipuliani Park - Kihei - Maui, HI USA
South Point - Hawaii, HI USA
A-Bay - Hawaii, HI USA
Favorite Beaches: _
Kanaha - Maui, HI
Kihei - Maui, HI
South Point - Hawaii Island
Kite Beach - Cabarete, Dominican Republic
Tableview - Cape Town, South Africa
Style: Big Air :D
Gear: 2022 Dice 10m/12m SLS, 2022 Rebel SLS 12m, 2022 15m Aluula Juice
2017 Core Choice 2 142, 2020 Duotone Jaime Textreme, 2014 Best Breeze 145,
Brand Affiliation: The Maui Kitesurf Company
www.mauikitesurf.com
Location: Maui, HI
Has thanked: 28 times
Been thanked: 77 times
Contact:

Re: Ocean Rodeo: Introducing Flight Plan - Lease New Kites

Postby dracop » Tue Jun 17, 2014 4:32 pm

windfreak74 wrote:Great news!!,
Now include the boards too so we can ride all new gear!

:thumb:
Pedro
If they did a similar 12mo lease or finance option, this would improve OR's position as the boards depreciate far less than the kites. I am amazed they don't do it as a package deal, extending the finance/lease to include the board, it would really anchor their stake imo.

While kites depreciate 50-60% in year 1, boards are very slow to depreciate. After the initial 15% hit for being Used vs New, the board maintains for years. I spent three months trying to buy a LItewave Wing, Spleene Door, or Mako King used for a good price, they never come up for sale and they sell fast when someone puts a 30% discount. Watched one Wing go for $600 on eBay - it was a Used 2011 model with small dings/scratches. Guy had to have been loving it, he had use of the board for years and suffered minimal depreciation. I was bale to find sales on New boards of the same make for about the same price. So, I believe OR could improve their security by bundling boards in as a package in the finance/lease option while simultaneously making it easier on the end client to load up on their gear.

Shame these options did not exist sooner, at this point I am geared out for awhile lol.


Return to “Kitesurfing”

Who is online

Users browsing this forum: BillyGoatGruff, bragnouff, Clem, crosisca, duddd, Exage, Faxie, Google [Bot], grigorib, nixmatters, Pitu, plasma180, PullStrings, purdyd, rnelias, rStorms, tonester, universalflush, Windwarrior and 442 guests