I was just reading some threads on Windwing and the departure of their designer Bill Hansen. I was reading a thread on their own forum where someone said that WW's production started falling apart because Best is made in the same factory, and Best was pressuring the factory to limit WW production otherwise they would have withdrawn their contract with that factory.
Anyone heard anything about this? Just thought it was interesting. I always hear about some companies sharing product, design, parts, etc.. There's no reason to reinvent the wheel, but i was surprised to hear they would have the same factory. What about the same designer? What about the same managment.
I know Naish started off as a spin off of Mistral. Cabrinha started off as a spin off of Neil Pryde. Etc... and etc...... and more etc.....
If we import stuff from outside the E.C. we have to pay 20% taxes.
So a $500 kite costs $600 over here ,wouldn't that be margin enough to start a production facility in one of the new eastern Europe countries.
solo flight wrote:If we import stuff from outside the E.C. we have to pay 20% taxes. So a $500 kite costs $600 over here ,wouldn't that be margin enough to start a production facility in one of the new eastern Europe countries.
Virtually all production in this industry is "outsourced". These factories are part of industrial groups that make multiple products... efficiency scale... Even if you can get east European manufact cost down to southeast Asian countries... you still don't have distribution efficiency... take a typical air package and price from eastern Europe to US versus from Asia to US... there is enormous cost differential (US/Australia is > 50% of market). Also, what's the internal VAT for a $600 product? I doubt the "net" difference is as large as 20%... and it varies by EC country... lower in Spain, Ireland, e.g.; higher in Norther EC countries...