Well I am thinking the number is too low, but play with the figures. It is just a rough calc.tautologies wrote: Foil, I think your numbers are off. No way north sold 60k kites. (?).
Kiting has yet to see a super compelling product appear that is direct, their is no Tesla or Apple. Pansh is I would say half way there, their prices leave people in disbelief, they lack a good bar and whole package. If the kites were exactly as good as Flysurfer or dare I say even better at their current prices they would wipe the market for foils. Switch are not really that cheap, and the designs well.. I am not going to comment.tautologies wrote: Look at the other product lines / brands that are folded in under. In any case sure you can say that direct benefits you, but best proved that foothold and growth kite companies needs presence....its not the resellers per se, but that we choose kites based on what other people ride. I'm guessing once we select a brand most are fairly stable in the next choice. ..so kite brands need people to use the kites on the local beach... ...and right now the best way to do that is schools, established shops etc.. That model works for this industry.
Free market? Sure look at for instance the legal trouble Tesla has faced. There is hidden cartels doing very shady things. The reason no big brands will undercut their resellers and go direct is because the resellers will all drop them for another big brand and bad mouth them till they are out of the market.iriejohn wrote: All you describe below takes place in a free market. Exactly how would you recommend that this market be 'reformed' and by which mechanisms?
Reform? Consumers just need to stop buying from the big brands. The brands that are so big they are scared of resellers, pretty sad.
Wow they really take the cool aid whole don't they, even their accounting is in the wrong year.Foxi wrote: I agree .. taken from a clip on youtube from their Dutone Launch meeting in Tarifa
~33,000 kites I am off a bit there. That is a tiny tiny supply of a product.
I really don't care what they do. If people want to pay for supporting team riders go ahead. As long as there is choice not to I am happy.Kykeon wrote: I'm with you for leaner kite companies!
Especially when it comes to team riders.
What happened to best was actually quite funny. They kind of proved the point that team riders do not equal success.
Are you gathering that from me posting here or I like Pansh lol.Kykeon wrote: But I bet you do not run (or contribute to the business part) of a company with physical goods that operates globally, do you?
So in the case of North this is 33000 kites. This is a minuscule number for products. There is direct businesses that would ship that per day to individual addresses. Amazon ships 1600000 items PER DAY. Accounts and payments are all automated IT problems. Seriously storage for 33000 kites? This is a joke right?Kykeon wrote: If a company goes through distribution, in order to sell say 20M worth kites and other products it needs
A few hundred
accounts, hundreds of shipments, small temporary storage space etc
Really payments are an IT problem, there is no ball breaking. Customs is the customers problem, why is it your problem they live in a shit country. Tell em to get some guns and have a revolution.Kykeon wrote: For direct you break your balls for a single chicken loop that did not get the payment through or did not pass customs
Rubbish it scales fine, again Amazon.Kykeon wrote: The biggest problem is that this does not scale and you can't benefit from economy of scale.
Certainly is. Most kite brands can be had at factory prices, just not easy to do. There is plenty of products that can be bought direct for less than shops buy them.purdyd wrote: there isn't a business model in place anywhere that sells to the public at the same price it sells to distributors or retailers
Nope, standing at a counter is not a necessary cost, nor is triple shipping items, stacking shelves, or talking shit.purdyd wrote: that is because those distributors and retailers incur costs that would otherwise have to be absorbed by the manufacturer
Exactly my point the reseller is not needed. If consumer can buy for the same price as reseller, reseller can't resell because he does not add any or much value. I would even go to say because of the hassle of some resellers they actually reduce value.purdyd wrote: if a manufacturer undercuts the price that a retailer sells for, the retailer will not sell that product
Direct only works if the product is compelling. That means price and quality are at a compelling point. Like really low price and reasonable quality or reasonable price and really high quality. Both compelling.purdyd wrote: i think direct to consumer only works if a small portion of the sales for kiteboarding is using that model
But Best failed after they went with the resellers! Overnight their prices went up after the went with resellers, they then became less compelling.purdyd wrote: even best kiteboarding which started out direct sales move to include retailers because retailers do perform a function
Exactly the market can choose. The question is what compelling direct kite products are there? The only easy one I think is Pansh, if you source any of the other major brands direct or say get closeouts then they are better then say Switch.purdyd wrote: now sponsored riders and fancy promotion videos? I guess the market can vote with their dollars if those things are worth paying for.