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frmercado
Since 16 Feb 2011
33 Posts
PDX
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Mon Mar 23, 15 6:51 pm Strong dollar, cheap kites? |
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With the weakening of the Euro and European deflationary trend I would expect that the European brands will start getting a lot cheaper and the American and Australian brands will have to lower their prices in order to compete with the resulting European pricing.
When do you think the current monetary divergence between the Euro and the Dollar will translate into cheaper kites on the retail end? Right now you can get brand new kites in Europe from North and Core starting at the equivalent of about $870 dollars full price retail... This effect should also trickle down to the used kite market relatively quickly.
Any idea if waiting to buy kites for a couple of months would be a good idea? |
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pkh
Since 27 Feb 2005
6549 Posts
Couve / Hood
Honored Founder
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Mon Mar 23, 15 9:15 pm |
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Does that price include the VAT? That was always a big factor in the pricing of kites for Euros. |
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muthergoose
Since 14 Oct 2013
169 Posts
East Couve
Stoked
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Tue Mar 24, 15 5:11 am |
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that would be pretty sweet if the prices did come down a little. Prices do seem a little excessive, beyond the usual markup. So can you buy kites for that price from europe or does taxes and shipping ruin the deal? |
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Slappysan
Since 13 Jun 2012
309 Posts
Obsessed
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Tue Mar 24, 15 8:52 am |
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The Yuan/USD hasn't really changed though so I don't see why prices would come down. The only kites not made in China are probably Flysurfer. |
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Sasquatch
Since 09 Mar 2005
2084 Posts
PNW
Bigfoot
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Tue Mar 24, 15 9:28 am Re: Strong dollar, cheap kites? |
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frmercado wrote: | Any idea if waiting to buy kites for a couple of months would be a good idea? |
I guess a good question to ask yourself, is what price do you put on your mental health?
Watching on the sideline/beach while it's windy and all your friends are scoring a session/s while your crying in your cold beer as you didn't the proper kite as you wanted to wait a few weeks to save a few bucks. ;-0
One has to factor in the opportunity costs of a lost session/s. |
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frmercado
Since 16 Feb 2011
33 Posts
PDX
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Tue Mar 24, 15 10:56 am |
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Slappysan wrote: | The Yuan/USD hasn't really changed though so I don't see why prices would come down. The only kites not made in China are probably Flysurfer. |
Although the manufacture of most, if not all kites is done in China, the manufacturing cost of a kite comprises a relatively small part of the actual cost of the kite. I would say that most of the costs goes into management, marketing, employee salaries, distribution and warehousing, engineering and R&D, etc. In the unlikely case that manufacturing were to become noncompetitive because of the strong Yuan, production could be moved to other countries (Mexico with low wages, proximity to the biggest markets, descent infrastructure and relatively skilled labor comes to mind).
You also have to remember that the energy costs for European countries have come down substantially with the drop of oil prices and there is a deflationary tendency in Europe (no way the kites are not going to drop in price over there since, as I mentioned, most of the overhead costs come from operations and not from manufacturing). Then you've got the unprecedented drop in the Euro vis a vis the greenback; the question is not if the prices are going to drop, but how long will it take? |
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Sella
Since 21 Apr 2007
1794 Posts
Doin' The Dalles
FLY'IN HIGH PIE GUY
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Tue Mar 24, 15 11:03 am |
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Mercado...VAT is the killer for Euros and anyone else outside of Estados Unidos....and Oregon has no sales tax so it's difficult to hedge the global currency game when your local nwkite market has a glut of inventory so don't expect a changing Euro to have any local impact as crispy used kites around here typically sell for 60 cents on the dollar so we are as cheap as it gets for kites IMO.
Plenty of mint 2014's and 2015's popping up for sale and Core kites can be purchased locally for almost nothing. Nice kites, nice people flying them and they are willing to have you demo etc so why transfer funds, fees and shipping costs to Ukraine hoping the old inventory they are dumping arrives as expected?
Smoke through your green locally, it keeps our scene alive and who knows the guy you buy from might be the one that helps you self rescue someday. |
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frmercado
Since 16 Feb 2011
33 Posts
PDX
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Tue Mar 24, 15 11:17 am |
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Sella wrote: | Mercado...VAT is the killer for Euros and anyone else outside of Estados Unidos....and Oregon has no sales tax so it's difficult to hedge the global currency game when your local nwkite market has a glut of inventory so don't expect a changing Euro to have any local impact as crispy used kites around here typically sell for 60 cents on the dollar so we are as cheap as it gets for kites IMO.
Smoke through your green locally, it keeps our scene alive and who knows the guy you buy from might be the one that helps you self rescue someday. |
I've always bought local and always will and if given the choice I always try to go for Dakine and Slingy, but these big currency movements will have a much larger impact than VAT will ever have, VAT has an impact that goes from an average of 5% to 15% on the overall value of merchandise. These macroeconomic factors (Strong dollar, european defaltion and an overall slowing down of the global economy) will affect ALL services and products within the range of 15% to 30% There is no escaping macroeconomics in the globalized world of today. The question was if someone had any predictions on how long will it take for these changes to be reflected in the kite market (for all kites European American Australian etc.), once the global market adjusts? I just want to make it clear I'm not encouraging to buy European kites or to not buy local. |
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J.P.
Since 10 Mar 2005
638 Posts
Addicted
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airon^
Since 07 Aug 2013
290 Posts
Durango
Obsessed
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Wed Mar 25, 15 9:22 pm according to my calculations... |
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this topic involves macro metaphysical considerations that may or may not influence the fluctuations of the pressure gradients providing said author with overly warm air, delivered with minimal variation and maximal overblowance.
yeah
I'm smart _________________ surf the san juans |
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1surfer
Since 20 Apr 2010
354 Posts
'Ualapu'e / High Rockies
Obsessed
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Sun Mar 29, 15 5:01 pm Ozone |
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Slappysan wrote: | The Yuan/USD hasn't really changed though so I don't see why prices would come down. The only kites not made in China are probably Flysurfer. |
Ozone not made in China. _________________ Ozone Reo's. C&k Beach Boy Service, Windsurfing Waikiki, Hawaiian Windriders, NSRN. |
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hilton
Since 15 Aug 2008
798 Posts
Opinionated
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Sun Mar 29, 15 6:02 pm weak Canadian dollar = expensive kites in the USA |
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I am more interested to see what effect the weak Canadian dollar will have on Hood River spring/summer tourism. I would assume fewer Canadians making shorter trips and spending less while they are here. Their loonies are currently worth about 15 cents less than they were last summer. |
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1surfer
Since 20 Apr 2010
354 Posts
'Ualapu'e / High Rockies
Obsessed
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Sat Apr 11, 15 4:36 pm No price drop |
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I just don't see the kite companies lowering prices any time this century. You may be able to get a better price due to exchange rate if played correctly. That being said I would be surprised if any of the majors drop prices.
Kites sure do seem expensive. Can you imagine buying several kites at full retail $$$$.Whoa !
One positive thing that I can say is that re-sale on late model kites from the top brands seems to be pretty good. Its a shame because there are some smaller companies that make great flying, high quality kites, but there is very little re-sale value just because they are not super popular
If the major kite companies ever lower prices, I ill buy the everyone a round at Full Sail. _________________ Ozone Reo's. C&k Beach Boy Service, Windsurfing Waikiki, Hawaiian Windriders, NSRN. |
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juandesooka
Since 21 Jan 2014
98 Posts
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Sun Apr 12, 15 8:32 am Re: weak Canadian dollar = expensive kites in the USA |
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hilton wrote: | I am more interested to see what effect the weak Canadian dollar will have on Hood River spring/summer tourism. I would assume fewer Canadians making shorter trips and spending less while they are here. Their loonies are currently worth about 15 cents less than they were last summer. |
Canadian interloper here. I haven't gone to Hood myself yet, but I do make a trip or two to the coast. I suspect the dollar won't affect kite tourism that much. An extra $100 or $200 on a DIY driving trip may not be enough to affect the go/no go decision. But it definitely will weigh in on the price of bigger trips or gear purchases. I am a regular cross border shopper, buying in USA, shipping to Point Roberts, WA for pick up. With a 30% exchange rate added on, the bargains for us northeners are now all but gone. |
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