Aussie Dollar UP US dollar down=cheaper kites

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Gone to dark side
Gone to dark side
NSW
394 posts
NSW, 394 posts
12 Jul 2007 12:36pm
Good time to start this one off
kitesurfbali
kitesurfbali
WA
531 posts
WA, 531 posts
12 Jul 2007 11:17am
you are so right.... Good for you..
Blaster
Blaster
WA
501 posts
WA, 501 posts
12 Jul 2007 11:39am
Mmmm yes, I noticed that the other day. I was checking a site I've been watching and 2 kites for $1500 US saving hundreds just on the exchange rate. Shipping is free too, yeha... Still not sure though, need some wind to demo the other kites I have in mind.Hope it stays that way for a while longer.
gruezi
gruezi
WA
3464 posts
WA, 3464 posts
12 Jul 2007 11:53am
Don't know about that.
NSW, 4382 posts
12 Jul 2007 2:12pm
Am I correct in understanding what you are saying?
You will demo the kites here from a local shop, then buy them from an overseas online vendor?

If the answers are yes to the above - Do you think thats a good way to keep your local store in business and to treat other fellow kiters (that happen to run a kite shop)?

Cya and

Goodwinds

Steve




quote:
Originally posted by Blaster

Mmmm yes, I noticed that the other day. I was checking a site I've been watching and 2 kites for $1500 US saving hundreds just on the exchange rate. Shipping is free too, yeha... Still not sure though, need some wind to demo the other kites I have in mind.Hope it stays that way for a while longer.

Juddy
Juddy
WA
1103 posts
WA, 1103 posts
12 Jul 2007 12:32pm
Ahhh, self interested capitalism. Don't ya just love it???
Blaster
Blaster
WA
501 posts
WA, 501 posts
12 Jul 2007 1:33pm
quote:
Originally posted by Kitepower Australia

Am I correct in understanding what you are saying?
You will demo the kites here from a local shop, then buy them from an overseas online vendor?

If the answers are yes to the above - Do you think thats a good way to keep your local store in business and to treat other fellow kiters (that happen to run a kite shop)?

Cya and

Goodwinds

Steve




quote:
Originally posted by Blaster

Mmmm yes, I noticed that the other day. I was checking a site I've been watching and 2 kites for $1500 US saving hundreds just on the exchange rate. Shipping is free too, yeha... Still not sure though, need some wind to demo the other kites I have in mind.Hope it stays that way for a while longer.





OK, I can see how you misinterpreted what I said. As your just thinking from a shop owners point of view....surprise surprise

So I've narrowed it down to about 3 or 4 kites I think I'm really going to enjoy riding. 1 out of those kites is sold on a website I frequently visit. The others are distributed by our helpful local instructor.
My favorite is out of my budget, I can't justify at my level that money (like Gruezi and others, the lucky buggers with the ion2). The others I've not had a chance to demo yet, but the reviews sound really good. Plus they are more realistically priced. That being the case I havn't purchased online yet and probably won't if the demo reveals what's been said about the kites to be true. In that case, obviously I'll purchase from a local distributor.

I have a different outlook on the who supports who...Not that I care to much to be honest. All I know is I support my wife and kids. So if I can get 2 kites online for the price of 1 kite from you. Well you go figure it out.

BTW I don't have a local shop, it's 30 min drive to nearest shop.

But whatever, Your response was typical shop owner stuff.

So the next post will be all the bad experiences you will suffer from buying from a website... let's see

Out of interest how many people have purchased online what are your experiences

Cheers for your concern KP anyone got any honest review on the LF Havoc please
airush geoff
airush geoff
974 posts
974 posts
12 Jul 2007 1:42pm
The local shops here mean that gear is available and can be demoed. The amount of kites I have tried and hated that had I bought them online I would have been stuck with.....

The kite shops in general also support comps, giveaways and schools- things we all need.

Imagine having to wait weeks to get a broken bit replaced or even worse dealing with a warranty claim from an online purchase!

I have no affiliation to any shop, just wouldn't want to be without the local..
890Falcon
890Falcon
NSW
383 posts
NSW, 383 posts
12 Jul 2007 4:09pm
Right on Darkside and the timing is perfect, the 15th is only around the corner.

Naish Helix bring it on and then all we need is some wind.
waveslave
waveslave
WA
4263 posts
WA, 4263 posts
12 Jul 2007 2:19pm
quote:
Originally posted by Kitepower Australia
Am I correct in understanding what you are saying?
You will demo the kites here from a local shop, then buy them from an overseas online vendor?

If the answers are yes to the above - Do you think thats a good way to keep your local store in business and to treat other fellow kiters (that happen to run a kite shop)?




So Steve,
If an overseas customer wished to buy a kite from you thru the Kitepower Australia online shop,
would you politely suggest to him that it would be more supportive of his fellow kiters,
if he bought that kite from his local corner kitestore ?
trevor1
trevor1
WA
598 posts
WA, 598 posts
12 Jul 2007 2:43pm
quote:
Originally posted by waveslave

quote:
Originally posted by Kitepower Australia
Am I correct in understanding what you are saying?
You will demo the kites here from a local shop, then buy them from an overseas online vendor?

If the answers are yes to the above - Do you think thats a good way to keep your local store in business and to treat other fellow kiters (that happen to run a kite shop)?




Or for that matter, someone from WA?

So Steve,
If an overseas customer wished to buy a kite from you thru the Kitepower Australia online shop,
would you politely suggest to him that it would be more supportive of his fellow kiters,
if he bought that kite from his local corner kitestore ?

IANC
IANC
QLD
130 posts
QLD, 130 posts
12 Jul 2007 5:13pm
It's always good to research and shop around for a best price. Then goto a local shop with cashola (if you can) and negotiate on the Recomended Retail Price. (it is recommended after all) You may just surprise yourself on how good a deal you can get.

That way if your local shop helps support you, you can help support them. It's a win win situation, and you are likely to be a repeat customer.

It works for me.

Happy negotiating....

NSW, 4382 posts
12 Jul 2007 6:10pm
Yes, and yes, especially for lessons and support after the purchase and we generally do not sell overseas anyway. The only exceptions would be for a couple of brands and only if the person is known to us. There are certain brands that specifically ban us from selling outside Australia, and we are happy to comply, as we actually agree with most of the reasons behind the policy.
We actually don't sell many kites online, and wherever possible we do recommend people go see their local dealer.

However Australia is a country with 30,000klms of coastline, not everyone has a local.

I just thought it was rough to demo kites from a local store and then buy from some other outlet.

Walk in and negotiate, my old arm can be twisted a lot easier these days!!!

If you think about it, most of us consume lots of imported goods, including our fuel, and most of those goods are paid for in U$D, so therfore, based on Dark sides logic, everything should be going down in price. But you know it won't!!!!!
The percentage change in the $ is only one of the costs of running a business, and most of us in the business had to order and pay for kites some time ago, and at exchange rates that are set in the past too. Virtually all businesses average costs, if workers get a pay rise, all the goods made by that company don't automatically rise immediately do they?
You can't have it both ways.

Cya and goodwinds

Steve

quote:
Originally posted by waveslave

quote:
Originally posted by Kitepower Australia
Am I correct in understanding what you are saying?
You will demo the kites here from a local shop, then buy them from an overseas online vendor?

If the answers are yes to the above - Do you think thats a good way to keep your local store in business and to treat other fellow kiters (that happen to run a kite shop)?




So Steve,
If an overseas customer wished to buy a kite from you thru the Kitepower Australia online shop,
would you politely suggest to him that it would be more supportive of his fellow kiters,
if he bought that kite from his local corner kitestore ?

xtortya
xtortya
WA
322 posts
WA, 322 posts
12 Jul 2007 4:21pm
i used to be in export, and as soon as the aud went up, my pay went down. It's a shame its not as quick the other way. Someones making money [}:)]
echostorm
echostorm
QLD
1245 posts
QLD, 1245 posts
12 Jul 2007 10:57pm
hehehe... i have to pay one of my contractor in US so everytime the dollar goes up I save more money[}:)]

Just means the stronger AUD and weaker US is good for imports bad for exports and tourism. So yes, kite prices will go down. That said most are made in China anyway.
user
user
WA
1140 posts
WA, 1140 posts
13 Jul 2007 6:33am
Kite prices ARE down!

They have been getting cheaper and cheaper.

You can get a new kite from 1400-1500 now,a few years ago they were 2400 !
Blaster
Blaster
WA
501 posts
WA, 501 posts
13 Jul 2007 9:16am
I do agree with IANC's comment about going to your local with some cash, that at least gives them the opportunity to beat or match a the cheaper price. I would do that before ordering online, perhaps I should have stated that previously.

I'd imagine shops would want to start getting rid of 07 stock around now ready for the 08 gear. I realise different manufactures have different release dates, but the majority will be coming out soon right.

Surely shop owners will be one of the first to be cashing in on the exchange rate at the moment. Good time to be paying up any outstanding bills and purchasing new stock with American suppliers for example. Does the customer see any of the savings Generally not.

Hey look the slave's got some green thumbs up..

robbo
robbo
WA
306 posts
WA, 306 posts
13 Jul 2007 1:16pm
ill fix that...
waveslave
waveslave
WA
4263 posts
WA, 4263 posts
13 Jul 2007 8:32pm
quote:
Originally posted by Kitepower Australia
The only exceptions would be for a couple of brands and only if the person is known to us.
We actually don't sell many kites online, and wherever possible we do recommend people go see their local dealer.




So Steve,
Are you saying that if folks don't reside in southern Sydney, your local area,
then don't bother Kitepower Australia about any goddamn kite purchases ?
Is that your policy ?
The strict local dealer policy.
But then you say you can make an exception.
If you know the customer, you can do a deal.
lol.
You certainly have a lot of stupid rules for a shopguy.
dave......
dave......
WA
2119 posts
WA, 2119 posts
13 Jul 2007 10:01pm
Buy local? No-way. Shops have to earn your loyalty and exclusivity. We're spending big bucks and unless the personal factor is there I'd always go the cheapest.3 kite shops in relative distance to me, I use 1 unless somethings unavailable. Why....SERVICE.
eg. a long time ago I popped a bladder in a relatively new kite. No questions asked, when I dropped it off, I was given a demo of the same kite whilst mine was getting fixed.
Little things like this have got the shop another 4 kite purchases, 2 board purchases, 2 harness,etc.
Bigwavedave
Bigwavedave
QLD
2057 posts
QLD, 2057 posts
14 Jul 2007 12:12am
Shop owners don't benefit from the exchange rate unless they import the kite directly.The difference between a 75c and 85c dollar value is about $100 on a kite. Often the kite you buy today was paid for over 6 months ago.

Most retail shops buy from the importer at fixed prices regardless of the exchange rate.

If anyone benefits, it's the importer. Don't assume the shops are making a killing. For every demo kite they use (which aren't free and often abused by test riders) they have to sell 10 kites to pay for it. Then they have to hope that all their stock moves before the end of the season or else it's superceded and worthless.

Often your local kite shop has another business or sideline because the money in kitesurfing just ain't there. For me it's a lifestyle choice.
jan
jan
WA
1119 posts
jan jan
WA, 1119 posts
13 Jul 2007 10:35pm
quote:
Originally posted by user

Kite prices ARE down!

They have been getting cheaper and cheaper.

You can get a new kite from 1400-1500 now,a few years ago they were 2400 !



but we are talking about a 10-12% change in the usd-aud exchange rate in the last few months alone... why do kite prices not reflect this! (as i've mentioned before some kites are dealt in euros and i haven't looked at that exchange rate)
Bigwavedave
Bigwavedave
QLD
2057 posts
QLD, 2057 posts
14 Jul 2007 12:59am
The kites on the shelf now were paid for months ago when the exchange rate was different.

Your reasoning would really only apply to the kites coming off assembly lines now.

However, of the $2000 price tag of a kite (before arm twisting), only about $900 (educated guess) would be subject to exchange rates. A 10% change in exchange rates would work out at $90

Once a kite lands in Australia there are lots of home based charges that are not subject to a favourable exchange rate. Import duty, freight into Australia, agents fees, freight to the wholesaler, wholesaler's margin, freight to the retailer, retailer's margin and GST.

I doubt whether any kite company are going to adjust their prices around an ever changing exchange rate especially while freight prices are increasing every day.

Blaster
Blaster
WA
501 posts
WA, 501 posts
13 Jul 2007 11:35pm
Well you've talked me out of opening a kite shop... I'd be stuffed, by the time I paid some dude to work in it that knows what he's talking about there would be nothing left from what your telling us.

Anyhow I think selling womens bikini's would make more business sense. Less shop space consumed, probably 300% mark up a pair Here's the bonus don't have to leave the shop for a demo...

I witnessed someone get semi rich out of removing equipment from the store and replacing it with clothing, mainly womens. Took him a while to realise, now he orders boards etc out the catalog at request with a couple weeks waiting time.
Bigwavedave
Bigwavedave
QLD
2057 posts
QLD, 2057 posts
14 Jul 2007 9:12am
I run a little kite shop purely because it makes my wife think I have a real job. Lessons and sales and a great lifestyle.

If you saw my books you'd realise that to get rich in this game you have to be an asshole, have no team riders and give no discounts.

But I love the life, and work in a pub 4 nights a week to pay my bit of the rent.

I feel for the shops that have to pay wages and huge rents.
jquigley
jquigley
WA
205 posts
WA, 205 posts
14 Jul 2007 9:21am
quote:
However, of the $2000 price tag of a kite (before arm twisting), only about $900 (educated guess) would be subject to exchange rates. A 10% change in exchange rates would work out at $90



Hey Bigwavedave, with reference to the quote above, does this mean the wholesale price is $900 and markup is 120% or so?

J-P
Bigwavedave
Bigwavedave
QLD
2057 posts
QLD, 2057 posts
14 Jul 2007 2:05pm
Nope. Importers cost would be about that. Then add all the other things and gst.

The shop's margin is not as big as you think. In fact, I lost money on kites this year just to get them out of the door before the new season's stuff is available.

Every product you buy has the same middle man costs.

Manufacturing cost + R & D costs + freight to dock + Kite Co margin + export duty + freight to destination + handling fee + import duty + freight to importer + importer's margin +freight to retailer +retailer's margin + GST = the price you pay.

In all of that you have marketing, advertising, wages, rent, blah blah blah

Shops have to make enough margin to pay wages, pay rent, pay insurance, provide t shirts, advertise their business, cover damage and demo stuff.

So when you screw a shop down a hundred dollars or so, that is his cream (not the kite company's) he is giving to you. He still has to live and eat. The only way to make good money is to turn over a lot of stock. The kitesurfing market is very small so you won't see a lot of shops getting rich unless they sell other high margin goods.

Is it worth it? Bloody oath. You can't beat kitesurfing as a lifetstyle and you'll die happy...not rich.
user
user
WA
1140 posts
WA, 1140 posts
14 Jul 2007 2:39pm
I never got a T shirt !
VIC, 203 posts
15 Jul 2007 4:05pm
quote:
Originally posted by user

Kite prices ARE down!

They have been getting cheaper and cheaper.

You can get a new kite from 1400-1500 now,a few years ago they were 2400 !



User - U da man, you are correct and that is why you won't see discounting.The reason kites stay the same is because margins are nothing on kites compared to almost anything else you can buy.
Take pity on your poor shop as prices have gone from 3 - 4 thousand to between 1-2 thousand over a few years as supply and demand increase so does competition. Also I think you have to be very lucky and know someone to get a kite for $1400.

However, in light of this argument I will knock a serious amount of $ off in the order of 20% for Gin Nazca (normally $1879 for 12m) and EH Ripper kites (normally $1749 for 12m)between now and Sept.On line only of course
This should go a long way to making up for the weak US dollar or our stron Aus Dollar which will have cacked out again by then with an election looming.

How do you like that User? 08 models amd the only licensed bow kite to win a round of the PKRA for around $1.4k and an awesome 5 line hybrid bridled C kite as good as anything on the market also under $1.5k.delivered to your door

user
user
WA
1140 posts
WA, 1140 posts
15 Jul 2007 5:04pm
Right on man !
Mr float
Mr float
NSW
3452 posts
NSW, 3452 posts
15 Jul 2007 7:56pm
Oh you should have bought PLK .Free doona with every T shirt

quote:
Originally posted by user

I never got a T shirt !

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