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Why Advanced Equipment Priced Higher than Entry-Level and Intermedidate Equipment?

Poll Results: Greatest Factor(s) in Advanced Equipment Costing More than Entry/intermediate.

Poll expired: Nov 18, 2004 This is a multiple choice poll
  • 32% of voters (22)
    Advanced models more expensive to manufacture; higher cost of materials / construction.
  • 17% of voters (12)
    Make fewer units of advanced models; have to charge a higher unit-cost to make up tooling costs
  • 35% of voters (24)
    Advanced skiers are willing to pay more. Manufacturers mark up their advanced equipment more.
  • 10% of voters (7)
    There's more advertising, promotion, and endorsement expenses for advance models
  • 4% of voters (3)
    Other
68 Total Votes  
post #1 of 14
Thread Starter 
Vote for which reason is the greatest factor in why advanced equipment is more expensive than entry-level and intermediate equipment. Feel free to rank the reasons (and add your own) in your comments.

THIS IS A PICK MANY POLL -- If you think most or all of the reasons apply pick most or all of them BUT if you think one (or two) of the reasons really outweigh the others, pick just that one (or two).
post #2 of 14
Flawed:

I think that one part of the 3rd choice is correct, Manufacturers mark advanced gear up more, but I don't think folks wanting more advanced gear are necessarily willing to pay more.

It is sort of required that they pay more---given the mark up's.

Thats a big distinction in my eyes.
post #3 of 14
I'm sure R&D is a factor too.
post #4 of 14
Good thing someone beat me to FLAWED!! I marked all the choices because they all apply. I think one thing to consider is advanced models ARE the startup tooling costs. Very often the lower end stuff is just making use of the old molds orginally developed for the high end stuff or using the same molds with cheaper materials to pump out a lower cost product. The high end market will support a higher price but has smaller sales and the intermediate and low end (rental) market will do more volume but must be supported by lower prices.

Look at the car industry or worse the computer industry if you want to go crazy thinking about these things.
post #5 of 14
At the very least, you need to add a subsection for "All of the above".
post #6 of 14
NO NO NO!!!

The poll is for the GREATEST reason, not EVERY reason! It's obvious that people are willing to pay, since they do. IMO, at issue is whether or not the prices are justified, in which case other reasons could be more important.
post #7 of 14
C'mon guys, the answer's obvious. Sure it's All The Above, coupled with the fact that Advanced skiers are the gear buyers of the world. Have you ever heard of a "Beginner Gear Whore". Other than me, of course.
post #8 of 14
Always wanted to say "Flawed"

BigE, good thoughts, but thats NOT how the option was worded. Hence the "Flawed" part.
post #9 of 14
All of the above.

If I had to pick one that has slightly more influence than the others, it would be #1: advanced/expert/race skis require more R&D and more expensive materials and production techniques.

Example #1: Most technologies relevant to high-performance ski construction come from ideas born on the World Cup, and that is a very expensive testing ground. The manufacturers pay upwards of $100k annually to be a US Ski Team Pool Supplier - and that's just for the right to be able to give race skis away. Then add on wax techs and travel expenses...

Example #2: Many high performance skis use materials that are not needed in the construction of entry level skis - like wood, titanal, and Carbon fiber/kevlar. Using Titanal or other alloys add $20 to the production cost of one pair of skis.

Skier_j: Margins, in terms of percentage, aren't higher for high-performance gear. Sure, the manufacturers make more $ per pair, but it is at roughly the same percentage as a lower end ski. Quite often it is the cheap skis that have larger margins because these skis are little more than polyurethane foam, base and edges. In the US, most manufacturers clear between 30 and 35% per pair sold at wholesale. If the retailer can sell them at a decent price, they'll make about 40%. However, once April comes, the retailer will be lucky to get their money back.
post #10 of 14
skier_j:

Quote:
Originally Posted by learn2turn
Vote for which reason is the greatest factor in why advanced equipment is more expensive than entry-level and intermediate equipment. Feel free to rank the reasons (and add your own) in your comments.
(my bolding)

I rest my case.
post #11 of 14
Quote:
Originally Posted by BigE
NO NO NO!!!

The poll is for the GREATEST reason, not EVERY reason! It's obvious that people are willing to pay, since they do. IMO, at issue is whether or not the prices are justified, in which case other reasons could be more important.
Dam, just when I thought the poll was flawed it turns out those taking the poll are actually flawed.... who knew.

L7 = FLAWED!!!
post #12 of 14
If they cost more they must be better, right?
post #13 of 14
Quote:
Originally Posted by BigE
skier_j:


(my bolding)

I rest my case.
Each statement should have been an option then. Hence: Flawed!!

I took the options to be the validity of the combination of statements, in which case, I rest my case.

Mark up percentage relative to lesser equipment aside, those that want top end stuff are still going to have to ante up more if they want the top end stuff, and I still don't think that implies they are willing.
post #14 of 14
Quote:
Originally Posted by troutman
All of the above.
Skier_j: Margins, in terms of percentage, aren't higher for high-performance gear. Sure, the manufacturers make more $ per pair, but it is at roughly the same percentage as a lower end ski. Quite often it is the cheap skis that have larger margins because these skis are little more than polyurethane foam, base and edges. In the US, most manufacturers clear between 30 and 35% per pair sold at wholesale. If the retailer can sell them at a decent price, they'll make about 40%. However, once April comes, the retailer will be lucky to get their money back.
Troutman,

Those are not my words---they are part of the pair of statements.

again, my impression was the combination of statements taken together is the option. I can't verify whether markup is higher or lower so how can the option be anything but

Flawed
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