bigbearfng 18 #1 May 27, 2009 This is not to slam any manufacturer as I realize that there is a lot of R&D etc. that has to be covered in costs. But realizing the mark up on a lot of items from gasoline to jewelry to whatever that can be seen in the wide range of prices to be found got me wondering.... (Especially since all of our dollars feel a lot tighter nowadays!) Quote Share this post Link to post Share on other sites
NiteQwill 0 #2 May 27, 2009 It's not just R&D but the cost of purchasing/making the material to make the equipment. Many businesses in the past year went out of business because they simply were not making enough to cover the cost of supplies from their suppliers, who, inadvertently hike up prices because fuel is expensive."Fail, fail again. Fail better." -Samuel Beckett Quote Share this post Link to post Share on other sites
theonlyski 8 #3 May 27, 2009 At the electronics store I used to work at in Houston (name kept because im sure there is atleast a couple guys that go there on here) We usually went 20-60%, depending on what the item was and how good of a deal we got on them."I may be a dirty pirate hooker...but I'm not about to go stand on the corner." iluvtofly DPH -7, TDS 578, Muff 5153, SCR 14890 I'm an asshole, and I approve this message Quote Share this post Link to post Share on other sites
diablopilot 2 #4 May 27, 2009 Having worked in gear sales for 5 years I'll tell you this: The manufacturer sets the retail price, then offers the dealer a discount off of this as dealer cost. The largest (high volume) dealers get 30% very rarely they might get 35% if they are very high volume or a long time dealer. Here is the catch: All dealers have to discount from retail just to compete. Some items only 10 to 15%, while others as deep as 25%. There are the "trunk" dealers who have very little overhead (a website, some flyers) who will even cut down to 30% but there is little to no service after the sale from them. Some manufacturers have set maximum discounts the dealers are allowed to offer, however enforcement of this is weak. So, a dealer is very lucky to make 10 to 15% on a complete rig, and most don't sell one every day, some not even every week. Most gear shops make a better living on t-shirt and rigging sales.---------------------------------------------- You're not as good as you think you are. Seriously. Quote Share this post Link to post Share on other sites
2shay 0 #5 May 27, 2009 Prices were high even a few years ago. Skydiving is expensive all the way around. When they told me how much they would sell me gear for initially, I laughed at them. I have had so so so many people jump and not continue because there was just no way of pursuing it financially. This will never happen, but it would be cool if they could get there costs to be a bit more affordable. Once again this will never happen, but it would be nice in a perfect world.don't try your bullshit with me!!! Quote Share this post Link to post Share on other sites
faulknerwn 38 #6 May 28, 2009 Just remember there are good rigs that can be bought even new much cheaper that are still good - Dolphins and Shadow Racers come to mind. If you buy some of the not as popular canopies many can be bought cheaper too... Don't get me wrong - the more expensive canopies and are absolutely good stuff - but there is also great stuff that is cheaper and perfectly good and functional :-) Quote Share this post Link to post Share on other sites
divnswoop 0 #7 May 28, 2009 Nice of you to disclose how you do business...good luck selling something above 10%.... Quote Share this post Link to post Share on other sites
diablopilot 2 #8 May 28, 2009 I'm not in the business. None of this is any sort of secret. And if all you're looking for is a low price, you can get it, but as the old saying goes, "You can get it cheap, you can get quality, and you can get it fast, but never more than 2 of the three." We're lucky that anyone wants to sell gear in this industry OTHER than the manufacturers. When I was in sales, I can't count the number of times I spent 10 to 20 man hours measuring, educating, filling out order forms, securing a production slot, making order changes for a customer, only to have them take all that completed hard work and go to a trunk dealer who sold at 5% over cost. Hell, I've been undercut by a manufacturer before. The worst part is when the customer gets the gear has a problem, and the trunk dealer wants no part in solving it, they want the local gear shop to handle it. For free.---------------------------------------------- You're not as good as you think you are. Seriously. Quote Share this post Link to post Share on other sites
2shay 0 #9 May 28, 2009 yeah I got all my stuff used but, its better than most everything on the market and it was a steal.don't try your bullshit with me!!! Quote Share this post Link to post Share on other sites
skypuppy 1 #10 May 28, 2009 Back in the old days you could get a new 7-cell main like a pegasus for about $800, and rigs, like a new wonderhog or up here an innovator, for $295 to $375. Then there was an article in Skydiving Magazine that Bill Booth had hired a marketing firm to look over his operation and make suggestions. Their suggestion? Bill would never get rich until he started charging the same amount for a container as the canopy companies were making for their parachutes. Within a year that happened. And the cost has gone up ever since. Canopies got more cells, so they cost more.... They're smaller and more fidgety to make, so there' more labor involved.... Hell, a jumpsuit now costs as much as a rig used to. I've heard the argument that the other reason the cost went up was to help cover the risks of lawsuits involved. The solution? Until you're experienced to get a sponsor who may give you a deep discount on a rig.... Buy used. They're easier to pack, too. Of course, this is written by a cheapskate who spent over 25 years packing his own chute before ever paying someone else to pack it for him....If some old guy can do it then obviously it can't be very extreme. Otherwise he'd already be dead. Bruce McConkey 'I thought we were gonna die, and I couldn't think of anyone Quote Share this post Link to post Share on other sites
SPAWNmaster 0 #11 May 28, 2009 QuoteBack in the old days you could get a new 7-cell main like a pegasus for about $800, and rigs, like a new wonderhog or up here an innovator, for $295 to $375. Then there was an article in Skydiving Magazine that Bill Booth had hired a marketing firm to look over his operation and make suggestions. Their suggestion? Bill would never get rich until he started charging the same amount for a container as the canopy companies were making for their parachutes. Within a year that happened. And the cost has gone up ever since. Canopies got more cells, so they cost more.... They're smaller and more fidgety to make, so there' more labor involved.... Hell, a jumpsuit now costs as much as a rig used to. I've heard the argument that the other reason the cost went up was to help cover the risks of lawsuits involved. The solution? Until you're experienced to get a sponsor who may give you a deep discount on a rig.... Buy used. They're easier to pack, too. Of course, this is written by a cheapskate who spent over 25 years packing his own chute before ever paying someone else to pack it for him.... it seems that that's what's going on in the base community. you'll find new gear thats super marked up to make up for the R&D and production costs of the very specific canopy types. not to mention that rigs are given hefty price tags because of bells and whistles. Quote Share this post Link to post Share on other sites
JerryBaumchen 1,365 #12 May 28, 2009 Hi skypuppy, QuoteCanopies got more cells, so they cost more.... They're smaller and more fidgety to make, so there' more labor involved.... I disagree. I have built more than just one sport harness/container. I have also built one ( yup, just one ) canopy. The canopy ( once I had the pattern worked out, which went fairly fast ) was way more faster than any rig that I have ever built. There are a lot of parts in a rig. And the parts count is the killer. Oh, and there is all of the goofy colors that have you changing thread on the machines far too often. One thread color in a canopy. Just my thoughts, , , , , JerryBaumchen Quote Share this post Link to post Share on other sites
skypuppy 1 #13 May 28, 2009 Hi Jerry Quote -------------------------------------------------------------------------------- Canopies got more cells, so they cost more.... They're smaller and more fidgety to make, so there' more labor involved.... -------------------------------------------------------------------------------- I disagree. I have built more than just one sport harness/container. I have also built one ( yup, just one ) canopy. ________________________________________________ No argument here. I was alluding to the fact that when a 7-cell Pegasus, cloud, titan, whatever, for example, was replaced by a 9-cell, or even a 21-cell, then the cells got smaller, airlocks were added in, etc., so now we have canopies on the market in the mid $2000-2500 range or more.If some old guy can do it then obviously it can't be very extreme. Otherwise he'd already be dead. Bruce McConkey 'I thought we were gonna die, and I couldn't think of anyone Quote Share this post Link to post Share on other sites
