cantSUPenough said..
I would like to know if there are breezers out there in retail (not SUP) and whether they are facing the exact same issues: imported products becoming more expensive, questions as to the number of links in the supply chain, customers learning from the retailer (selecting the right product) and trying to cut costs by buying on-line, etc.

(I am not a retailer, but it seems like a familiar story.)

And I would still like to hear from our US friends how much prices will increase in the US.

But with a 20% change in the exchange rate (plus a built-in buffer against further changes), I guess we should expect all imported products (based on the USD) to become more expensive.

CantSUPenoughYou are right in your assumptions.I am in the Electrical (Home Appliance & Audio Visual business) with a major Australian RetailerSo far in 2015, we have seen 3-4 Invoice Price Rises from electronic consumer goods coming from O/S

Usually, these prices are passed on directly to the consumer

The currency used in the transaction is irrelevant. Other than the purchasers currency, only two items really matter:


1. The currency used by the seller to build the product.

2. The currency used by the seller to live his/her own life.


With surfboards, USD will only impact #2. And USD probably won't impact #2 very much. THB and CNY, being the places that most board manufacturers both reside in and produce their boards in, are the two most important currencies.

$200 is a bargain for jousting sticks, Antix.... $250 is a fair price depending on condition.

Concur with your other thoughts.

The market will sort this all out. Fewer new boards will sell and the secondhand market will hold prices better.

JeanG said..
The currency used in the transaction is irrelevant. Other than the purchasers currency, only two items really matter:


1. The currency used by the seller to build the product.

2. The currency used by the seller to live his/her own life.


With surfboards, USD will only impact #2. And USD probably won't impact #2 very much. THB and CNY, being the places that most board manufacturers both reside in and produce their boards in, are the two most important currencies.

Actually the currency used in the Transaction is the most important thing as its what sets the price in your country of purchase.

And POINT 1. building product, part of the cost will be in local currency but most will be in USD as that is what raw materials will be purchased in.

And POINT 2. The person selling you a Sup is in your country. The person selling to them, Your country as well.

Got to agree RM, have a laird 10'6" 32"wide surfer and just traded a 9'1" Laguna bay in for a custom speed which will be in the August shipment -- will have an 10'6" and a 8'8" -- the laird for a long slow point break and the speed for local beach breaks. I took the centre fin out of the laird and surf it as a quad, it goes really well and does actually accelerate out onto the face and not sit in the sweet spot as some people have had this experience. Took the centre fin out initially to surf the inside section of the point at half tide ( nice little hollow waves ) but will rip out long fins sometimes. The result was more waves and a transformed board.

Steve

^^^ That should read rock magnet

Qbay said..
Someone has to pay for the big boys contracts...

Think i've paid my fair share. One more board and my wife will leave me.

TalkToMe said..
I've just re-read the entire four pages and picked out a few lines that stood out:


"(Prices are high) Like in sailboarding, (due to) the sponsored riders with their hands out, and everyone else trying to make some $ out of a passion, force up the final selling price."


"Cheap , cheap , cheap the majority will always go the cheapest. the smart ones go for middle of the road the one percenters go for the top"


"SUP may be heading the same way as sailboarding. Bought my first wave riding board and rig for $1200 within a few years everything went high tech and just a hull was $2000 then the rig was extra on top of that. During the late eighties there would be 60 sailboarders at Cronulla or Gerroa on a good day. Now just a handful. Hope SUP doesn't go that way because of pricing."


"So what happened here (South Africa) was that everyone became an importer - we must have at leat 30-40 brands in a tiny market with most selling less than 20-40 boards a year. It's clearly not enough to make a living but it is giving the customers options outside of the bigger established brands.


"The only way to really cut costs is to reduce the links in the distribution chain - IMO this is a very dangerous route as it means local retailers will fall by the wayside and customers will be forced to shop online and straight out of garages or smaller warehouses.


So it looks like the standard distribution model of manufacturer/brand/importer/retailer isn't ideal as this sets the prices generally too high.

Knowing that a few, or even a lot individuals in some markets, have started their own brand and have started selling straight from the importer level and in turn removing the retailer and their $400-$800 markup and more with some models. Customers are in turn willing to buy a brand with no community/history/brand value. So with that, is the big brand distribution model really working for all? There are so many brands out there that every Tom, Dick and Harry thinks they can sell SUPs.

Furthermore, it seems that most people don't want to pay over 2K for anything or even $1200 - $1500 for an Al Rounder. Would you agree?

All said and done, it seems it is hard to make a buck in the SUP market. And that is in a so-called rising trend. That is a little concerning.

Any thoughts?

Hey TTM,

I agree with your thoughts. I think that SUP is going to see a fairly large implosion. I think you can predict the path of SUP by comparing it to windsurfing, and snowboarding, Penny skateboards and Razor Scooters, only difference is that SUP is going to boom and cool in less than half of the time.

We are going to see dozens of people lose a small fortune as they jumped on the gravy train and bought themselves a container of cheap Chinese SUP's and have now realized that the road "paved with gold" was really just yellow paint.

SUP will always be around, but I think it will make a really interesting doco in time showing a spectacular rise to prominence and an equally rapid cooling.

I think there is a major reset coming as all the part timers and cheapies get out and lick their financial wounds. The local shapers will prosper and so long as they stay with custom shapes and locally made to order boards, they will be fine. The big boys mass producing? .... hmmmm, not sure, but the market can't handle the ever increasing prices, the plateauing numbers of paddlers and the oversupply of both brands and models. Perhaps the big boys have enough to offer in the lower end of their ranges to keep the masses happy. This may require a re-education for the mass buying public and a dramatic improvement in the quality and build in the lower end boards. The stuff I have seen at the dealer meetings has been promising.

Don't mean to be pessimistic just calling it as I see it.

DM

Personally it does affect me...just solodifies my decision to build my own...I don't make a six figure income to afford these prices. I can build exactly what I want, with the materials I want. Just bought 17 yds of 50 wide 5.9 oz carbon for $332.00 (US) that's enough for single ply bottom, double ply deck and a 2 yard long deck patch on my new 14 x 26" board. That's about $618 for foam/carbon/RR epoxy...$70 for traction/ $50 for sup handle, leash plugg, fin box. $25 for tape and sandpaper. I did it to be able to surf, wind surf, wave ski, and kayak...now SUP. designing and building your craft makes everything about experiencing the water more intimate. Everyone has their own approach...designing/ building my own works for me..and the more expensive the boards get the more building one (and investing in developing the skills necessary to build a quality board) yourself makes sense. It's not for everyone.., build if you can build, buy if you can buy...it's all good ...maximize whatever you have to work with.

cantSUPenough said..
Interesting thoughts.
For me, living close to the water, SUPing lets me continue my love of surfing, so I think that many of the one-time surfers will keep surf SUPing. Surfing has maintained popularity and so will surf-SUPing IMO.
But I can imagine the flat-water-paddlers, the let's-get-fitters, the let's-try-surfer's, will end up putting their SUP in the shed next to their old wind surfer, canoe, and paddle-ski-thing - especially if you have to travel any distance in order to get wet. The novelty probably will wear off.
But for right now, I'll give you my SUP when you pry it from my cold, (wet), dead hands

Not sure why you would say this when you know yourself the addiction that sup is.
How long is novelty? I've been sup surfing for about 6 years (or is it 7) and I'm probably the furthest distance from the ocean anyone wouldn't want to be.
This doesn't make me any less passionate or committed, I've even been known to dabble in comps. As for flat water paddlers, what? you can do that in any river, lake or dam so why are you even mentioning that.

micksmith said..

cantSUPenough said..
Interesting thoughts.
For me, living close to the water, SUPing lets me continue my love of surfing, so I think that many of the one-time surfers will keep surf SUPing. Surfing has maintained popularity and so will surf-SUPing IMO.
But I can imagine the flat-water-paddlers, the let's-get-fitters, the let's-try-surfer's, will end up putting their SUP in the shed next to their old wind surfer, canoe, and paddle-ski-thing - especially if you have to travel any distance in order to get wet. The novelty probably will wear off.
But for right now, I'll give you my SUP when you pry it from my cold, (wet), dead hands

Not sure why you would say this when you know yourself the addiction that sup is.
How long is novelty? I've been sup surfing for about 6 years (or is it 7) and I'm probably the furthest distance from the ocean anyone wouldn't want to be.
This doesn't make me any less passionate or committed, I've even been known to dabble in comps. As for flat water paddlers, what? you can do that in any river, lake or dam so why are you even mentioning that.

As you say, I love SUP. I am hooked. And clearly you are too. As are others who bother to participate in forums.

People have stuck with all sorts of sports; canoes, windsurfing, etc., but many sports have gone through crazes and the question is whether the interest will wane for those who are not truly hooked.

I point to SUP surfing as being a little different because it is a continuation of surfing for those surfers who were struggling due to age/health. That is certainly my case. But surfing has been popular for many years and - from where I sit - does not show any signs of waning.

My assumption is that SUPing on flat water may not be replacing a sport that people were forced to give up for the same reasons (age/health), so perhaps it will see a faster decline.

I also personally feel that a sport like SUP surfing provides a lot of variety, whereas - from my own experience - flat water river paddling does not. I once lived a long way from the surf and used to paddle a canoe on flat water. I loved it - for a while. But I stopped because I did not want to paddle the same water again and again.

Anyway, it is irrelevant what I think or what my experience was - it will all depend on all the people buying SUPs that were not previously in love with the water.